What is Bitcoin SV and is it better than Bitcoin?
There's more to crypto than just Bitcoin (BTC).
Currently, over 5,700 different altcoins exist in the digital asset market.
And from the top 10 cryptocurrencies by market cap, two are alternative versions of Bitcoin called Bitcoin Cash (BCH) and Bitcoin SV (BSV).
As we have discussed Bitcoin Cash in a previous AAX Academy guide, here we introduce BSV.
What Is Bitcoin SV and What Should I Know About its History?
Bitcoin SV (BSV) is a fork of Bitcoin Cash (BCH) and Bitcoin (BTC) that features the seventh-largest cryptocurrency by market capitalization.
Before deep-diving into the cryptocurrency itself, let's jump back a bit to understand the reasons behind Bitcoin SV's birth.
It all started with Bitcoin's scalability problems, which had sparked a huge debate in the cryptocurrency's community.
The main reason behind Bitcoin's scalability issues is its 1 MB block size limit, which caps the maximum size of transactions processed within one block.
With limited scaling capabilities, Bitcoin has increased network congestion risks that can cripple the cryptocurrency's blockchain with exponentially rising transaction fees and confirmation times.
While Bitcoin developers were determined to fix this issue, the scalability debate had split the community into two, where one side sought to solve the problem on the blockchain by increasing the block size limit and the other focusing on an off-chain resolution.
As the two parties could not agree on a common solution, the Bitcoin blockchain was split into two in August 2017.
While the supporters of the off-chain solution stayed with today's Bitcoin (BTC) blockchain, the other party created Bitcoin Cash (BCH) via a hard fork, increasing the network's block size limit initially to 8 MB and later to 32 MB.
For a few months after its birth, it seemed like Bitcoin Cash had a coherent community that worked together to promote the cryptocurrency's use for everyday transactions.
However, later on, the development team Bitcoin ABC proposed a major network update to add more functionality to the cryptocurrency, building the foundation for smart contracts within the BCH ecosystem.
The blockchain mining and research firm nChain rejected Bitcoin ABC's proposal arguing that additional functionality would be against Satoshi Nakamoto's vision to create Bitcoin as a peer-to-peer electronic payment system.
Instead, nChain's goal was to restore two old pieces of Bitcoin code as well as to increase the network's block size limit from 32 MB to 128 MB.
Like in the case of the Bitcoin scaling debate, the disagreement within the Bitcoin Cash community had split the blockchain into two, leading to the birth of Bitcoin SV on November 15, 2018.
What Problems Does Bitcoin SV Solve?
At first glance, Bitcoin, Bitcoin Cash, and Bitcoin SV seem like nearly identical cryptocurrencies.
To see their differences, it's essential to compare the three cryptocurrencies' primary uses.
Bitcoin primarily functions as digital gold, where users are encouraged to hold the cryptocurrency instead of spending it.
On the other hand, BCH's goal is to use the cryptocurrency as digital cash for everyday transactions.
And finally, Bitcoin SV developers seek to restore Satoshi's Vision (hence the name of the coin) to function as a global payment system that (potentially) overtakes all its current competitors.
To achieve this, BSV developers focus on user experience improvements, increased benefits for miners, and the promotion of enterprise and merchant cryptocurrency use via a highly scalable network and very low transaction fees.
As a side note, Bitcoin SV developers have increased the 128 MB block size limit later to 2 GB, which they then eliminated entirely in February 2020 as part of the "Genesis" fork.
Everything You Should Know About the BSV Price
As you know the essentials about Bitcoin SV and its history, let's now take a look at the BSV price.
Despite being a relatively new coin with less than two years of experience on the cryptocurrency market, Bitcoin SV has been doing quite well in terms of price.
While the BSV price remained relatively stable in the first few months – moving mostly between $70 and $90 –, Bitcoin SV entered into a bull run in mid-May 2019, increasing the cryptocurrency's value from $59 to $238 by June 26.
After a market correction to $86, the cryptocurrency's price started another uptrend at the end of the year, surging to $372 by February 12, 2020.
However, as in the case of most digital assets, the coronavirus-fueled general market crash drove down the BSV price to as low as $118 by March 14.
Since then, Bitcoin SV's price has been recovering its losses, trading at $196.77 at the time of writing this article.
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