Bitcoin SV stands for Bitcoin Satoshi Vision, a type of crypto that claims to be closer to the original vision for Bitcoin, which was founded by a person or group that went by the alias of Satoshi Nakamoto. While BSV and Bitcoin (BTC) have similar names, they are different cryptocurrencies.
Launched in 2018, Bitcoin SV is a fork of Bitcoin Cash (BCH), which itself was a hard fork off the original Bitcoin blockchain. Like many crypto that emerged from a hard fork, Bitcoin SV aimed to solve certain problems with the Bitcoin blockchain, now the oldest existing blockchain.
How Does Bitcoin SV (BSV) Work?
There have been a number of Bitcoin forks, many of them aiming to solve similar problems. Bitcoin has limited capability on its network to manage large volumes of transaction data in a short amount of time, which can make the network slow and result in high transaction fees. Bitcoin SV’s goal is to address Bitcoin’s scalability issue, while still aligning with the original vision of Bitcoin’s peer-to-peer electronic cash system as outlined in the foundational Bitcoin white paper, published in 2008 by Satoshi Nakamoto.
That said, Bitcoin SV was actually derived from a fork in the Bitcoin Cash (BCH) protocol — which was a fork of the original Bitcoin protocol that also aimed to increase block size to improve Bitcoin’s scalability (that’s the main difference between Bitcoin and Bitcoin Cash).
Bitcoin’s block size limit caps the size of a transaction. A characteristic of Bitcoin SV’s protocol is that it removed block size limits which ensures cheaper and faster transactions. The network is able to process tens of thousands of transactions with low fees.
What Is BSV?
BSV is the native cryptocurrency of the Bitcoin SV blockchain. The main difference between the Bitcoin protocol and Bitcoin SV’s protocol is that the Bitcoin SV network provides a larger block size. Bitcoin (BTC) has a 1 megabyte (MG) block size while Bitcoin SV was originally designed with a block size of 128 MG. The increase in the block size allows the Bitcoin SV network to process more transactions quickly. This characteristic is what sets Bitcoin SV apart.
Just like many other blockchains, the network is maintained by miners who get rewarded for mining new blocks. Miners on the platform have the option to work with a larger block. Each time they mine a new block they receive awards. The larger blocks that are provided on Bitcoin SV mean there will be more transactions processed per block and miners are able to earn more in transaction fees.
Bitcoin SV is based on four pillars including stability, scalability, and safe instant transactions, which the Bitcoin SV team believes provides the basis for its infrastructure to be the one blockchain for the world.
Advantages and Disadvantages of Bitcoin SV (BSV)
There are some pros and cons to consider when deciding whether to buy Bitcoin SV. Let’s consider some of the advantages first.
One distinct advantage of Bitcoin SV is the network’s ability to increase transaction capacity and build large-scale applications through BSV’s larger block size. The BSV network is able to process up to 100,000 transactions per second, and aims to compete in payment processing with the likes of VISA and Mastercard. BSV’s scalable protocol hopes to gain mainstream adoption from individual investors to businesses.
BSV has larger blocks than Bitcoin Cash, and this is by design. The philosophy for Bitcoin’s smaller block size is that, while the BTC blocks may have slower processing than BSV’s blocks, more people can still join to maintain the network, making it more decentralized.
The fact that BSV’s blocks are larger could sacrifice decentralization, which is the main selling point for Bitcoin (and a keystone of the defi movement
While Bitcoin SV is known for its scalability, its transaction volume is very low compared to Bitcoin, which could impact its future growth.
Another factor that may be holding Bitcoin SV back is that the crypto is not offered in all crypto exchanges. While some crypto exchanges offer BSV to its users, there have been other exchanges that have delisted or suspended the crypto.
There is also controversy around Bitcoin SV’s creator, Craig Wright, who claims to be Bitcoin founder, Satoshi Nakamoto.
• Ability to increase transaction capacity.
• Bitcoin SV transaction volume is low relative to Bitcoin.
• BSV has larger blocks than BTC.
• Not listed on every crypto exchange.
• BSV’s fees are expected to stay low as the network continues to grow.
• Still has a lot of room for growth.
Who Created Bitcoin SV (BSV)?
Bitcoin BSV was created by Dr. Craig Wright, an Australian computer scientist and businessman who claims that BSV is the true Bitcoin, retaining the vision Satoshi Nakamoto had when founding Bitcoin in 2009.
Although the name Satoshi Nakamoto is widely believed to be a pseudonym for the person or group behind Bitcoin’s launch, Wright has claimed that he himself is Satoshi Nakamoto, and that he authored the seminal Bitcoin white paper. However, many in the industry believe that to be false, since Wright has not provided evidence to back his claims. To this day, the crypto industry isn’t sure who the original Bitcoin creator, or creators, involved in the making of Bitcoin were.
Why Does Bitcoin SV (BSV) Have Value?
Apart from being a payments system, BSV has smart contract capabilities, which allows programs and applications to be built on the network. BSV has many projects under development related to gaming, analytics, NFTs, and more.
As cryptocurrencies become a more popular investment and as there is greater crypto adoption in the business world, the Bitcoin SV blockchain’s value proposition may continue to increase.
Furthermore, as the crypto ecosystem continues to grow and new crypto investors add cryptocurrency to their investment portfolios, there will be a need for scaling solutions. Bitcoin SV along with many other cryptocurrencies can help address the scaling issue by increasing capacity to allow more transactions to process fluidly and have more efficient blockchain operation.
Price of Bitcoin SV (BSV)
Bitcoin SV, like many other cryptocurrencies, can be volatile. BSV is currently valued at roughly $54, as of July 5, 2022; six months ago in January 2022, it was worth about $114.
Today, BSV is the 30th largest crypto, with a market cap of $1.03 billion.
Why Use Bitcoin SV (BSV)?
As cryptocurrencies have grown in popularity and more investors have been piling into Bitcoin, the network has had a lot of activity, resulting in congestion of the Bitcoin blockchain and higher transaction fees. These higher costs can be a challenge for everyday users who may not be able to tolerate these added fees.
If you want to transact the BSV network, you would access the BSV blockchain through your BSV crypto wallet where you can then buy, sell and store your cryptocurrency. For each individual transaction on the BSV network, the fee is $0.0001 USD. This is competitively low compared to other cryptos, and BSV’s fees are expected to stay low as the network continues to grow.
How Can I Buy BSV?
First, find exchanges that enable BSV trades. As you’re considering which crypto exchange to use, look into any fees that may apply.
Step 1. Fund your account.
Set up a crypto trading account and then fund your account with a secure wire transfer from your bank, or with a credit or debit card transfer (but check with your bank in the case of restrictions). Fees may apply.
Step 2. Set up a digital wallet.
Just as you might keep money in a physical wallet, cryptocurrencies are held in digital “wallets.” Be sure to set up a crypto wallet that supports BSV transactions.
Note that some crypto exchange accounts come with a custodial wallet, and there may be restrictions about moving your crypto off-platform.
Step 3. Trade BSV!
Once you’ve executed the trade, you can transfer your holdings to your wallet. You may want to leave your holdings there if you plan to keep trading.
Sharing Personal Data
Depending on where you choose to trade your crypto, different platforms may require different forms of identification. Some exchanges adhere to Know Your Customer (KYC) rules, a common set of standards that require investors to disclose certain information. Others may allow anonymous or P2P transactions.
Similar to trading securities, there are fees to consider
when trading crypto. Be sure to understand the associated costs that may come with trading crypto on one platform versus another, or using one form of payment versus another.
How to Sell BSV
Once you’ve decided to sell your BSV, the next step is deciding whether you plan to cash out for a fiat currency like U.S. dollars (USD) or trade another type of crypto.
Step 1. Decide what to sell.
If you’re exchanging BSV for USD, the steps may be different than if you’re buying another form of crypto — or you may have to complete a more extensive KYC identification.
Step 2. Find the right price.
Crypto prices fluctuate by the minute, so do your research beforehand so you know a good offer when you see one.
Step 3. Sell BSV.
Complete the trade and move your crypto (or cash) to your wallet, unless you plan to keep trading on the exchange.
4. Calculate taxes on gains.
Remember that crypto gains are subject to taxes. Be sure to consider the tax implications of selling BSV, and consult a professional as needed.
💡 Learn how crypto tax-loss harvesting can help lower your taxes.
Does Bitcoin SV (BSV) Have Staking?
Like many other cryptocurrencies, you can stake Bitcoin SV and earn rewards. The staking rewards that are available for Bitcoin SV are up to 2.53% APY. For example, if you were to have a starting Bitcoin SV amount of 500 with an estimated interest rate of 2.5%, after 12 months, you would have earned roughly 12 BSV.
💡 Recommended: What Is Staking Crypto?
Bitcoin SV came to market to address Bitcoin’s scalability issue. BSV’s block size is much larger than Bitcoin’s block size, which enables higher transaction volume at a cheaper rate. For this reason, Bitcoin SV is seen as an upgrade to Bitcoin — and a Bitcoin competitor.