Cryptocurrencies are not just Bitcoin (BTC).
Currently, there are more than 5,700 different digital currencies in the digital asset market.
Among the top ten cryptocurrencies by market capitalization, two are forks of Bitcoin, namely Bitcoin Cash (BCH) and Bitcoin SV (BSV).
We have discussed Bitcoin Cash in previous AAX Academy guides, here we introduce BSV.
Introduction to BSV and its history
Bitcoin SV (BSV), the fork of Bitcoin Cash (BCH) and Bitcoin (BTC), is the seventh-largest cryptocurrency by market capitalization.
Before diving into the cryptocurrency itself, let’s review the reasons behind the birth of Bitcoin SV.
It all starts with the scalability issue of Bitcoin that has sparked a great debate in the cryptocurrency community.
The main reason behind Bitcoin’s scalability issues is its 1MB block size limit, which limits the maximum size of transactions that can be processed within a block.
With limited scalability, the risk of network congestion rises, paralyzing the cryptocurrency’s blockchain, and multiplying transaction fees and confirmation times.
While Bitcoin developers are determined to fix the problem, the scalability debate has divided the community between those trying to solve the problem on-chain by increasing the block size limit, and those focusing on off-chain solutions. plan.
In August 2017, the Bitcoin blockchain was split in two as the two parties could not agree on a common solution.
Proponents of off-chain solutions continue to use the Bitcoin (BTC) blockchain today, while the other party created Bitcoin Cash (BCH) via a hard fork, initially increasing the network's block size limit to 8MB, and later And increased to 32MB.
In the first few months after BCH was born, members of the Bitcoin Cash community also made a concerted effort to promote BCH for daily transactions.
Later, however, the development team Bitcoin ABC proposed a major network update that extended more functionality to BCH and laid the foundation for smart contracts within the BCH ecosystem.
Blockchain mining and research firm nChain has rejected Bitcoin ABC's proposal, arguing that additional features would go against Satoshi Nakamoto's vision of making Bitcoin a peer-to-peer electronic payment system.
The goal of nChain is to restore two pieces of old Bitcoin code and to increase the network's block size limit from 32MB to 128MB.
Like the Bitcoin scaling debate, disagreements within the Bitcoin Cash community once again split the blockchain in two, culminating in the birth of Bitcoin SV on November 15, 2018.
What problems does BSV solve?
At first glance, Bitcoin, Bitcoin Cash, and Bitcoin SV appear to be nearly identical cryptocurrencies.
To see the difference, it is necessary to compare the main uses of these three cryptocurrencies.
Bitcoin's primary function is as digital gold, encouraging users to hold the cryptocurrency rather than spend it.
BCH, on the other hand, aims to use the cryptocurrency as digital cash for everyday transactions.
Finally, the Bitcoin SV developers seek to restore the functionality of Satoshi's Vision (from which it takes its name) as a global payment system that (potentially) surpasses all current competitors.
To achieve this goal, BSV developers are focused on improving user experience, increasing miner benefits, and promoting cryptocurrency adoption by businesses and merchants through a highly scalable network and extremely low transaction fees.
On a side note, the Bitcoin SV developers have since increased the 128MB block size limit to 2GB, and then they removed it entirely in February 2020 as part of the Genesis fork.
BSV price performance
Now that you know the basics of BSV and its history, let’s take a look at the price of BSV.
Despite being a relatively new coin with less than two years of experience in the cryptocurrency market, Bitcoin SV has performed quite well in terms of price.
The BSV price remained relatively stable in the first few months – mainly fluctuating between $70 and $90, but Bitcoin SV entered a bull market in mid-May 2019, increasing the value of BSV from $59 to $238 by June 26 Dollar.
After the market price corrected to $86, the price of BSV started another uptrend at the end of the year, surging to $372 on February 12, 2020.
However, as is the case with most digital assets, the coronavirus-induced broader market rout pushed BSV prices down to $118 by March 14.
AAX is a digital asset exchange powered by LSEG Technology. AAX Academy is a user education channel created by AAX, which aims to help more users learn novice tutorials and understand the basics of blockchain.
About AAX Academy
AAX is a digital asset exchange powered by LSEG Technology. AAX Academy is a user education channel created by AAX, which aims to help more users learn novice tutorials and understand the basics of blockchain.
