BITCOIN SV
Original authorSatoshi Nakamoto
Date released15 November 2018
Ticker symbolBSV
AlgorithmSHA-256
Consensus mechanismProof-of-work
HalvingYes, every four years.
Block reduction6.25 BSV
Block time10 minutes
Supply limit21 million

While there are many obscure Bitcoin spin-offs, ranging from Bitcoin Diamond, Bitcoin Gold to Bitcoin Cash ABC and Bitcoin PoS BPS, Bitcoin SV (along with Bitcoin Cash) is one of the most recognized.

Bitcoin SV is the second-most popular Bitcoin-related coin, as evidenced by its 16th place ranking of largest cryptocurrencies according to CoinMarketCap. Bitcoin SV boasts a market capitalization of roughly $3.2 billion with a per-token value of $173 (all data valid at the time of writing).

This article will briefly cover the distinctions between BSV’s predecessors, how BSV came into fruition, its technical structure, why it’s valuable, and any prospects.

Beginnings

2017 was arguably the most eventful year for Bitcoin for several reasons, one of which involves the hard fork that led to Bitcoin Cash’s creation. 

The purpose of the split was to increase the inferior 1 MB block size to 8 MB, allowing for a new coin capable of processing significantly more transactions while still keeping the original Bitcoin intact.

However, about a year later, there were more disagreements on Bitcoin Cash’s scalability as a large group of miners desired to further increase the block size to 128 MB (now uncapped). nChain, a leading blockchain research company led by Daniel Connolly, Steve Shadders, and Craig Wright, is credited as the team who spearheaded the spin-off from Bitcoin Cash.

To quote Shadders, “Bitcoin SV is the only version of Bitcoin which adheres to the protocol, design, and vision of Satoshi Nakamoto.” The team named the new cryptocurrency Bitcoin SV, with SV standing for ‘Satoshi’s Vision.’ 

With Bitcoin SV, the significantly larger block size allows for a truly ‘peer-to-peer electronic cash system’ (as outlined in Bitcoin’s whitepaper) with impressively high throughput and low fees.

How does Bitcoin SV work?

At its core, Bitcoin SV is nearly identical to its predecessors, a blockchain-based decentralized, peer-to-peer cryptocurrency. According to cryptwerk.com, at least 700 merchants (and growing) accept this coin for payment. 

Bitcoin SV is available on countless cryptocurrency exchanges where users can safely trade and store the token in a secure wallet. Like Bitcoin, the magic number of the total Bitcoin SV that will ever exist is 21 million, of which 89% is presently circulating (about 18.6 million BSV).

Bitcoin SV’s ledger

Experts describe one of SV’s advantages as a miner-friendly blockchain compared to its ancestors, especially Bitcoin. BSV shares many similarities nonetheless with the former as it too works using a proof-of-work consensus mechanism. 

In this model, users ‘mine’ with advanced, powerful computers by solving complex mathematical equations to add blocks. Whichever miner is first in this activity currently receives 6.25 BSV, where every block forms roughly every 10 minutes.

Bitcoin SV also shares two critical likenesses with Bitcoin and Bitcoin Cash; the mining algorithm and halving frequency. BSV employs the SHA-256 algorithm in its blockchain and a halving structure every four years for controlling supply. The next halving date is estimated to be around June 2024.

What makes Bitcoin SV valuable?

With so many versions of Bitcoin, what makes SV different from the rest? The developers desired a cryptocurrency capable of massive scalability to enable usage by billions of people globally. This is one of the fundamental attributes set out in Satoshi’s original whitepaper. 

One of the main reasons the original Bitcoin is still significantly more valuable than any of its spin-offs is its first-mover advantage. However, there are flaws within its protocol, explaining the reasons for the hard forks today. 

One of the core features of a useful cryptocurrency is one with ultra-low fees and quick transaction times. By design, BSV continually aims to make low-cost microtransactions feasible and dirt-cheap even during a busy network. 

For example, (as of 29 January 2020), according to bitinfocharts.com, the median transaction fees for Bitcoin, Bitcoin Cash, and Bitcoin SV are $4.15, $0.00094, and $0.00012, respectively. The larger block size is beneficial not only to ordinary folk but for all types of businesses.

Future of Bitcoin SV

One indication of what will affect the value of Bitcoin is by studying the original Bitcoin due to sharing several identical designs. Surprisingly, SV didn’t perform as incredibly as its predecessor, despite both having their much-anticipated block reward reduction events around May 2020. 

Historically, these events have led to price rallies on three occasions, but there is no telling if Bitcoin SV will eventually ‘catch up’ anytime soon. Aside from the expected software upgrades that all cryptocurrencies experience, there are currently no significant plans in the pipeline we should expect from the developers.

What investors should note is BSV prides itself on being the only project adhering to ‘Satoshi’s vision’ of massive scaling. It is not like other projects focusing on short-term results but aims to create a long-term and sustainable economy with the potential to truly affect the world of finance.

Conclusion

Bitcoin SV forms part of a tight-knit ‘Bitcoin trio’ (along with the original Bitcoin and Bitcoin Cash), being high up as one of the most well-known cryptocurrency projects. The success of this coin, as with its competitors, heavily depends on how the broader market performs in the future.