Despite being delisted from major markets last year, at time of writing one Bitcoin SV will get you only about $60 less than a Bitcoin Cash. This is significant, as it shows a confidence in the people holding Bitcoin SV.
Still, the cryptocurrency had lost 35% versus BCH’s 31% loss. During one of the biggest red candles in cryptocurrency history, BSV is holding above $100. Effectively, BSV is earning its place in the top 10 cryptocurrencies.
Craig Wright has been relatively quiet as of late, focusing more on his court cases. For the uninitiated, Bitcoin SV is a fork of Bitcoin Cash (itself a fork of Bitcoin). It is primarily under the direction of Craig Wright, who claims to be the original Bitcoin’s (BTC) creator.
Possible Causes
My contention here is only that Bitcoin SV seems to be doing relatively well. Bitcoin has lost around $4,000 per unit in the past several weeks, while Bitcoin SV is holding above $100.
Typically, when coins dump, they dump in order. Many prices are tied intrinsically to the price of BTC, so a lower Bitcoin price automatically translates to a lower price of other tokens like BSV. But what we’re seeing here may indicate that people are actually buying the BSV dip, as well as holding onto their coins.
By this point in the game, people who don’t like BSV have had a chance to rid themselves of it, and the people holding it can be considered philosophical supporters of Bitcoin SV.
The philosophical contention of BSV supporters is that Bitcoin blocks should be as large as necessary to accommodate transactions on the network. A key argument in this debate has always been that larger blocks lead to centralization, because only bigger data centers can handle the larger blocks.
In essence, Craig Wright, who claims to have designed Bitcoin in the first place, believes there is no reason the original design shouldn’t simply be expanded.
Erstwhile, Bitcoin Core supporters believe that smaller blocks, with second-layer transactions, are the way to go.
This very discussion has led to the existence of three versions of Bitcoin.
Anyway, philosophical investors often hold onto their coins no matter what. This, combined with a lack of major markets to trade on, could explain why BSV is more reluctant to dump.
BSV’s biggest pair at time of writing was on some exchange called MXC, against Tether USD. In fact, all of its biggest pairings were with Tether, rather than Bitcoin, which is odd for an altcoin.
Looking Forward
So the market is currently tanking, but we who’ve been in the game long enough know that this is only a temporary situation. It could go on a long time, and it could get much worse than it is today. The global value of the cryptocurrency index as a whole has dropped over 25% in just a day. That’s absolutely insane, and certainly we’re not playing a child’s game here.
But what is the long-term future of Bitcoin SV? Craig Wright has repeatedly failed to deliver the proof that he is actually Satoshi Nakamoto – ergo, spending some of Satoshi’s coins. Gradually, his supporters have to lose faith.
Is that how Bitcoin SV will deflate, by virtue of people losing confidence in Craig Wright? Or, has the coin gone on to live a life of its own, without it much mattering what Wright does?
I’m leaning toward the latter at this point. I think the real Satoshi Nakamoto could come to life right now, prove that Craig Wright is a liar, and people would still trade and support Bitcoin SV.
What do you think? Let us know in the comments.
