Bitcoin SV (BSV) Guide: What Is It And How Does It Work?
Bitcoin SV (BSV) is a cryptocurrency which was created after another cryptocurrency named Bitcoin Cash (BCH) experienced a hard fork. Even though it was introduced a little bit prior to the fork, the blockchain of Bitcoin Cash has split in two competing coins – Bitcoin ABC (Adjustable Blocksize Cap) and Bitcoin SV (Satoshi Vision).
The latter cryptocurrency is what BSV represents, aiming to bring back the values and the technology of the original Bitcoin which include decentralization, using cryptocurrency as payments and trade methods as well as elevating the capacity of the network itself.
Led by Craig Wright who is the chain leader (and who claims to be Satoshi Nakamoto), BSV is constantly in the news because of Wright and his involvement with major media figures. Also, there is an ongoing Bitcoin Cash war between Wright and Roger Ver, which has led to major market charges.
During the protocol upgrade, both of the BCHABC and BSV mining powers were mobilized and shifted from BTC to BCH, leading Bitcoin to decline and sending the market to struggles. However, despite what happened, the forked BSV currency is now supported by many cryptocurrency exchanges.
What Is Bitcoin SV And How BSV Works?
Bitcoin SV is very similar to the original Bitcoin protocol. Just like Bitcoin, BSV is its own separate blockchain which was hard forked from Bitcoin Cash – as well as Bitcoin before it.
Every block in the chain of BSV contains a cryptographic hash of the previous block, a timestamp of the transaction as well as transaction data. New Bitcoin SV coins are rewarded to miners which validate new blocks, using their powerful computer processing to solve complex mathematical problems which are necessary to add each new block to Bitcoin SV and its blockchain.
Bitcoin SV can be broken down by 8 decimal pieces which is identical to Bitcoin. The smallest BSV unit is 0.00000001 BSV.
What Are The Benefits Of Bitcoin SV (BSV)
The main advantages of Bitcoin SV (BSV) include:
- Scalability: The block size of this cryptocurrency is 128MB while the original Bitcoin Cash (BCH) was only 32MB. With a bigger block size, BSV helps to scale the network and allow more transactions to be performed.
- Transaction Costs: The BSV developers wanted to minimize the transaction cost. This is how they created affordable and fast transactions at a large scale, which they believe are the keys to success for the new BSV cryptocurrency.
- Network Development: Satoshi’s view was implemented to the existing blockchain. This BSV implementation took lots of work – making Bitcoin SV a chain which underwent a lot more changes compared to its competitor – Bitcoin ABC.
What Makes Bitcoin SV Different Than Bitcoin And Bitcoin Cash?
We already noted that Bitcoin SV is very similar to Bitcoin as well as Bitcoin Cash. Aside from the name similarities, there are similarities in their blockchain protocols.
Mainly, the aspects where they differ start with the SegWit adoption. This is what led to the creation of Bitcoin Cash (by hard-forking the original Bitcoin blockchain) and in that manner, Bitcoin Cash was designed to have bigger block sizes.
Bitcoin SV, on the other hand, was hard-forked from Bitcoin Cash and its supporters claim that BCH “has departed so far from the original Bitcoin that it is now an alt-coin developer experiment,” sought to preserve the original “Satoshi Vision.”
Bitcoin SV is therefore said to have more stability and a clearer vision which will allow for better scaling and more usage by businesses in the crypto industry. Similar to this, Craig Wright’s company nChain has a mission to “ignite global adoption and enterprise-level usage of Bitcoin” through Bitcoin SV. The firm believes that the “stable protocol and massive on-chain scaling” will help make Bitcoin SV become the base to which businesses will “use and build on top of the Bitcoin blockchain.”
How To Buy And Where To Store Bitcoin SV (BSV)
The best way to buy Bitcoin SV (BSV) is from a popular exchange. Obviously, every exchange sells BSV at different rates. On top of that, the price of this cryptocurrency has not yet stabilized, which is why it can sometimes be challenging for the buyers to find the best deals on the market. Make sure to choose a reputable cryptocurrency exchange when buying Bitcoin SV.
When it comes to storing Bitcoin SV, you need to choose a secure wallet. Because the cryptocurrency is new, the number of available wallets is way smaller compared to other cryptocurrencies. For now, the best wallets include the names of Atomic Wallet, Centbee, Guarda, and coinomi. For now, hardware wallets including Trezor and Ledger do not support Bitcoin SV.
How To Earn Bitcoin SV?
Bitcoin SV can be mined using cloud-mining services – or simply by setting up a cryptocurrency ASIC mining rig. ASIC miners are powerful computers designed for the purpose of mining cryptocurrencies.Bitcoin SV mining might be expensive due to the investment of buying an ASIC mining rig – plus the electricity consumed during the process (which is energy intensive). Alternatively, Bitcoin SV miners may also join a mining pool. The creator of BSV, Craig Wright, has opened up SVPool as part of the new initiative to promote Bitcoin SV.
Final Words And The Future Of BSV
Bitcoin SV is volatile and its price keeps changing. However, the altcoin managed to get in the top 10 list very easily and is often posting gains. In May 2019, Bitcoin SV (BSV) was the best performing cryptocurrency.
Currently, Bitcoin SV (BSV) is on the ninth position and is relatively stable with minimal gains. Craig Wright, who is the leader behind BSV, always believes that the cryptocurrency could rise more and keeps on upgrading it. His focus is mostly on improving the scalability, which is seen as a major challenge for the cryptocurrencies which are native to Bitcoin Cash (BCH).
The high level of security, low transaction fees and convenience for miners and institutional investors are what makes Bitcoin SV (BSV) a popular choice on the marketplace.