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Bitcoin SV

BITCOIN SV, BITCOIN CASH HALVINGS SPELL DOOM FOR THE MINERS

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Mining is supposed to be a lucrative activity, earning cryptocurrency by running specialist machines continuously. But for Bitcoin SV (BSV) and Bitcoin Cash (BCH), this simple process is proving to be far from profitable.


MINERS ABSORB LOW FEES, NON-LUCRATIVE BLOCK REWARDS

Miners for the two blockchains, which split off from Bitcoin (BTC) in a rather contentious manner, are working altruistically to support the chain. Additionally, both chains boast of much cheaper transactions, meaning very low additional fees for miners.

Transaction fees are viewed as a minor addition, with most chains having rather negligible fee levels. The chief reward for miners comes from the coins sent for solving a block. Even for Bitcoin’s chain, fees hover around $200,000 per day, a fraction of the block reward.

But the results are even worse for BSV and BCH. What is more, the miners on these networks need to supply highly specialized, high-capacity hardware. The reason is that the chains attempt to distribute larger blocks, putting additional strain on miners and node operators.

BITCOIN FORKED COINS REMAIN DEPRESSED

In

addition to absorbing hardware costs, the networks are also not lucrative enough, with miners working below breakeven. Additionally, BSV miners are pressured to hold onto the block rewards, as selling would further depress the asset’s price. BSV mining has also seen altruistic involvement in the past. Block production, on multiple occasions ever since the August 2017 hard fork, has depended on an “unknown” miner. This miner is suspected to be Bitmain.

For BSV, close to 50% of blocks also go to an “unknown” miner, sparking suspicions on which entity is supporting the chain with only a slight advantage to mining other chains.

Added to this are the relatively depressed market prices of BCH and and BSV. After the recent price slide, BCH returned to around $236.28. BSV traded at $116.47. For now, the coins have kept their new gains from the start of 2020. But their valuations are still significantly down from the prices close to the November 2018 hard fork.

The rationale behind this non-profitable mining is unknown. It is possible there is hope for a future price increase. Both projects have highly vocal communities, claiming that their coins are superior to Bitcoin, by merit of larger blocks and lower fees.

And both projects have been discredited by the touch of Dr. Craig S. Wright, the most notorious Satoshi Nakamoto claimant that has, on separate occasions, claimed both BCH and BSV are “the real Bitcoin”.

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Bitcoin SV

Bitcoin SV rally has reversed as it was based on shaky foundation

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  • Bitcoin SV rally might have been caused by dormant accounts.
  • BSV/USD has retreated from the recent highs amid technical correction.

Bitcoin SV has been all over the place since the beginning of January. Craig Wright’s saga set the speculative ball rolling, while pump created by lo liquid exchanges helped to create a FOMO (Fear of Missing Out) and push the coin from $116 to above $458 in a matter of four days. 

Another take at BSV rally

Analysts of Amun Research pointed out to network fundamentals that might have caused BSV rally among other reasons. Thus, the research revealed that the spike might have happened due to a large number of dormant accounts. The experts found out that a lot of BSV holders did not have access and not claimed their coins since they obtained them. 

Also, they estimated the average time investors had held onto Bitcoin and BSV, before initiating a transaction. This metric is known as “Dormancy” allows evaluating the holding habits of BSV investors.

At turned out, BSV was held for 13 days on average, which is longer than Bitcoin’s eight days. 

“All things being equal, the higher the dormancy the older coins are being transacted on that day for BSV than BTC, which in turn means that longer-term investors of BSV are releasing their coins into circulation at a higher rate than that of BTC currently.”

BSV/USD: technical picture

The coin has recovered from the intraday low of $275, the market is still dominated by bearish sentiments as long as the price stays below $300. This psychological barrier is reinforced by SMA50 4-hour and the upper line of 4-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $330 ( the upper line of 4-hour Bollinger Band) and $400.

On the downside, a sustainable move below the Asian low of $275 will open up the way towards the recent recovery low of $236 hit on January 19. If it is broken, a psychological $200.00 will come into focus.

BSV/USD 4-hour chart

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Bitcoin SV

Bitcoin SV Price Analysis: BSV/USD continues to surge up, $350 in sight once again

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  • BSV/USD went up from $250 to $316 over the last four days.
  • BSV/USD has already charted the golden cross pattern in the daily chart.
  • Craig Wright revealed that he has gained control over his Bitcoin holdings.

BSV/USD daily chart

BSV/USD daily chart

BSV/USD is well on its way to charting a fourth straight bullish day. Over the last four days, the price spiked from $250 to $316, which is a 26.4% increase in price. The bulls will definitely aim to re-enter the $350-level. The 20-day Bollinger band has widened enough for BSV/USD to go

up to the $400-region without being overpriced. The increase in price seems to be purely news-driven. Bitcoin SV’s Craig Wright who has been fighting for custody over his Bitcoin holdings against the estate of his deceased partner, Dave Kleiman. 

Wright recently informed the United States District Court of the Southern District of Florida that he has gained control of the private key needed to unlock the encrypted that contains a full list of his Bitcoin holdings. Wright told Cointelgraph:

I’m 99.9999 and a few more 9s percent certain that I will be taking control of my BTC and whatever else.

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Bitcoin SV

Bitcoin SV Recovers Smartly after A Sharp Fall

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Bitcoin’s most controversial fork Bitcoin SV (BSV) recovered smartly after crashing by 17% yesterday. The coin’s fall coincided with a legal case related to one of its main proponent’s Craig Wright.

Failure to prove things

Craig Wright is one of the most polarizing figures in the cryptocurrency industry. He has frequently called himself the real Satoshi Nakamoto, a claim that several other big names in the industry have trashed since then. He recently failed to prove that he has private keys that give him access to about $9 billion worth of Bitcoins.

Bitcoin SV Drops after Craig Wright Failure to Prove His Ownership of Private Keys

Wright previously promised to prove that he is Satoshi Nakamoto, the famous yet anonymous creator of Bitcoin. He said that he controls the funds that should ideally belong to Nakamoto. After he made these promises, Bitcoin SV’s price started moving up and reached an all-time high of $436.

Wright brought his evidence as a “bonded courier” but his lawyer said that it didn’t contain any information related to private keys. Andres

Rivero, his legal counsel confirmed, “The file that he’s received did not include private keys,” which led to a big letdown in the coin’s price. Interestingly, the coin started falling even before the lawyer confirmed this information. It fell 40% from its peak on January 15 to $262.

Bitcoin Cash moves up

After the inglorious fall of Bitcoin SV, Bitcoin Cash (BCH) is the fourth-largest cryptocurrency in the market again. Bitcoin SV has slipped to number 5. Note that Bitcoin Cash and Bitcoin SV are forks of the original Bitcoin Cash blockchain. Bitcoin SV’s fortunes now seem tied completely with the debate that Wright is the real Nakamoto.

Bitcoin Cash, on the other hand, is moving ahead with its development which has helped it remain relevant in the market. While BSV was falling, BCH gained 7%. Last year, several crypto exchanges removed Bitcoin SV from their platform, which shows a lack of trust in the project.

Dash (DASH) which gained steam unprovoked alongside BSV lost its steam. Its price dropped 15%.

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