What will happen to the Bitcoin SV (BSV) cryptocurrency?
Let's find out whether the developers solved the above problems, what is happening with the Bitcoin SV cryptocurrency, and the project's prospects.
Background and path of formation
In August 2017, there was a split (hardfork) in the Bitcoin network, as a result of which a new Bitcoin Cash blockchain appeared, the only changes to which were the block size increased first to 8 MB and then to 32 MB and the complexity recalculation time reduced to a day.
However, 15 months later, the newfangled blockchain also branched out into two more networks:
- Bitcoin ABC (now referred to as Bitcoin Cash),
- Bitcoin SV.
The reason was a confrontation between two camps led by Roger Ver on one side and Craig Wright, who repeatedly called himself the "true Satoshi" on the other. Roger Ver was supported by large miners and companies, including Bitmain and one of the largest mining pools at the time, ViaBTC, so as a result, Bitcoin ABC became the actual Bitcoin Cash.
Bitcoin SV was the second and last Bitcoin Cash hardfork to date. The name of the hardfork stands for "Bitcoin Satoshi Vision", which supposedly reflects the team's adherence to Satoshi Nakamoto's true vision. In the Bitcoin SV network, the block size has been increased to 128 MB, 4 times larger than Bitcoin Cash and 128 times larger than Bitcoin. In the future, the developers plan to increase the blocks to 1-2 GB and possibly even 1 TB, but such steps may lead to more severe data storage problems. According to the official website, the Bitcoin SV network processes up to 50,000 transactions per second, and the cost of commissions is less than one cent, which is most likely not authentic.
According to the Bitcoin SV developers, their goal was "not to go off track" but to restore the original protocol created by Satoshi. At the same time, Bitcoin and Bitcoin Cash took the path of expansion, providing, for example, tools to implement smart contract functionality using sidechains — second-tier solutions for scaling blockchain networks.
Bitcoin SV was created primarily for companies whose business is focused on the cryptocurrency sphere. After the Bitcoin Cash hardfork, some companies even launched the #WeChooseSV movement to support the Bitcoin SV network. Some apps such as Centbee, HandCash, Keyport TV and Money Button have started to support the Bitcoin SV network exclusively.
Unlike Bitcoin Cash, which, judging by its source code on GitHub, the developers have almost abandoned, Bitcoin SV is being actively developed. The developers release updates several times a week, while the virtually un-updated Bitcoin Cash doesn't even have its blog.
Bitcoin SV is significantly behind many older altcoins, such as Bitcoin Cash and Litecoin, which are still among the top 20 largest cryptocurrencies by capitalization. According to CoinMarketCap, the BSV cryptocurrency ranks only 67th with a capitalization of $975 million. Bitcoin SV reached its all-time high at $491 in May 2021, but since then, the price has dropped about 10-fold to $49 at the time of writing.
The situation was exacerbated by a 51% attack hitting the Bitcoin SV network in August 2021: malicious miners gained partial control of the network. They could reorganize more than 10 blocks to realize a double spend. Later, the miners could still defend the blockchain and set up the network, but analysts note that Bitcoin SV, like Bitcoin Cash, remains vulnerable to 51% attacks.
What will happen to Bitcoin SV?
Judging by the information background, the prospects of Bitcoin SV are not as bright as those of Bitcoin Cash, which is actively interested, including major players in the crypto market.
First, in 2023, significant exchanges Coinbase and Robinhood announced the delisting of Bitcoin SV. However, this has not prevented the capitalization of BSV from growing since the beginning of the year. This is probably due to the general tendency of many cryptocurrencies to grow. The price of the BSV cryptocurrency has even surpassed some forecasts. For example, GOV Capital expected Bitcoin SV to reach $40 only by 2025, but it has already almost risen to $50 as of December 2023.
Cryptopolitan's more optimistic forecasts predict that Bitcoin SV will be around $91 on average in 2024 and around $132 in 2025. The price of such altcoins tends to follow the exchange rate of the leading cryptocurrency, BTC. Despite the lack of innovation and loss of position, Bitcoin SV has a chance to stay in the top 100 cryptocurrencies, at least shortly.
In addition, the team continues to work on developing the ecosystem and attracting new investors and companies. The creators of Bitcoin SV believe their blockchain is one of the most suitable for cross-border payments between companies. Statista said companies made over 520 million B2B transactions via blockchain in 2022, which could grow to 1.7 billion by 2025.
However, delistings and the cryptocurrency's absence from major exchanges such as Binance, Coinbase, Kraken, and ByBit remain a negative factor for Bitcoin SV. If the trend does not change, the future of Bitcoin SV will be in question.
