What is Bitcoin SV (BSV) in simple words: history, course and how to buy

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2019-08-22 00:00:00:

The Bitcoin SV cryptocurrency is a Bitcoin Cash hard fork that appeared last year, namely November 15, 2018. The main task pursued by the coin is to maximize the preservation of the entire essence of classic Bitcoin. Thus, arguing about what Bitcoin SV is , which is also denoted "BSV", it is necessary to emphasize that it is entirely focused on the vision of the founder of the cryptocurrency Satoshi Nakamoto, presented in the Bitcoin White Paper.

What is Bitcoin SV (Bitcoin SV)

In simple terms, Bitcoin SV is an ordinary BCH fork, in which there are no innovations, purposes and directions. The main goal here is to follow the slogan: "To preserve the essence of Bitcoin, only to ensure the large scale of the coin." Experts note that SV should be deciphered as Satoshi Vision, which means “Satoshis vision”.

Cryptocurrency developers remain committed to the ideas of Bitcoin Cash, i.e. BCH. The priority is the following criteria - maintaining low transaction fees, ensuring a high level of security, creating favorable conditions for miners and investors, scaling the project.

More than one developer worked on the presented project - it was the nChain team and CoinGeek Mining. The fruitful work led to the receipt of an open source license for the Bitcoin SV code from the University of Massachusetts.

History of Bitcoin SV

As it has already become clear, the fall of 2018 was a turning point for developers of the Bitcoin Cash cryptocurrency. It was then that they split into two groups that pursued completely different goals from each other. There could be no question of any compromise. This was the reason for the hard fork and the division of Bitcoin Cash, respectively, into two groups - BCH and BSV.

The first group, that is BCH ABC, was led by Roger Vera. He pursued the goal of qualitatively developing the project, which was the main thing for him. Development and planned changes related to dApps, namely decentralized applications. The functionality, which will provide users with the opportunity not to use the services of crypto-exchanges, but to carry out all the necessary transactions between blockchains, also did not stand aside.

The second group, Bitcoin SV , was controlled by Craig Wright. This hard fork occurred at block 556767. The leader of this group is focused on improving the scale of the network, the speed of transactions, block expansion (up to 128Mb).

 It is noteworthy that the second group used BCH as the basis for their fork, however, the consensus algorithm was changed - Proof-of-work became the new one. Such innovations led to the reorganization of the network at block 557301, but this did not negatively affect the PoW algorithm.

Bitcoin SV team members

The project was created by a special team, which includes real professionals:

• developers with 95 years of common experience in this area;
• specialists providing a high level of quality;
• nChain project managers.

Among the leadership positions, it is worth highlighting the technical director Steve Shaders, who is responsible for shaping the overall vision of the project, working with partners and sponsors. Entrepreneur Craig Wright and multibillionaire Calvin Eyre provide interest and support for the project. So, Craig often makes scandals with the press, commenting rather sharply on his competitors.

Distinctive features of Bitcoin SV

The main features that characterize BSV are presented below:

1. If we look at the fork from a technical point of view, then it acts as an old BCH client, which was applied directly before the hard fork. Interestingly, the fork happened precisely because of the reluctance of BSV supporters to introduce new updates. At the same time, no alternative options were received from them.
2. BitcoinCashSV price is in an unstable position. For example, looking at the BCHABC rate, one can note its quite acceptable stability in value, although it is declining. But the price decrease in the second case occurs gradually, excluding sharp ups and downs, as this greatly scares away investors and users. The same cannot be said about the position of the BCHSV value, as it is somewhat unpredictable. Users have already had the opportunity to follow its sharp rise and the same sharp decline. Once the BSV rate jumped from $ 38 to $ 133. As of today, the situation has not changed.
3. Studying the statistics of the BSV rate, one can observe its inverse correlation in relation to the original bitcoin rate. Experts have repeatedly noticed this fact. What does this mean? If the BTC price decreases, then the BSV value increases, and vice versa. A bit strange, but it takes place.

It is likely that BSV will undergo major changes a little later, but so far they have not been observed. However, there is still some innovation - this is the change of the abbreviation from BCHSV (as the cryptocurrency used to be called) to a shorter BSV. While so far, users are using both options.

Difference between Bitcoin SV and Bitcoin (BTC)

Studying the question of the difference between the new Bitcoin fork and the original system itself, it is worth noting several important points. So, in the original blockchain, problems related to scalability were greatly hampered and the reason for this was the block size limitation to 1 MB. As the number of transactions increased, there was an increase in the waiting time for their processing. Thus, a situation was formed in which the rate of block formation was several times higher than the rate of their direct production. To somehow resolve the current trouble, work was carried out to create a fork of BitcoinCash. Here the block size was larger, namely 8 MB, and eventually increased to 32 MB.

According to the data presented, the block size in Bitcoin SV increases from 32 MB to 128 MB, and a year later this figure is planned to be increased to 2 GB.

This was followed by the official conclusion of partnerships with the project, which is focused on cooperation with corporate clients of software for the full node Bitcoin Cash (Teranode). This was done to provide the system with high throughput, namely 6.5 million transactions per second and support for blocks, whose size is more than 1 TB. The planned actions must be translated into reality in the next two to three years.

According to the test results for Bitcoin SV, the systems ability to work with increased block sizes became obvious, its speed reached the 1500TPS mark. However, today there is no such high regular load on the network, so high bandwidth is useless for it. As you know, the highest value in the network was recorded at the 3.36 TPS limit.

It is important that an increase in the block size can lead to a worsening of the situation. The negative factors include the slow distribution of blocks across the network, which in turn will cause an increase in the number of ignored blocks. Also, the innovation will provoke an increase in capacity for processing large blocks, and this will cause an increase in centralization and will not have the best effect on scalability.

Bitcoin SV is a peer-to-peer payment system that provides irreversible electronic transactions between two parties to a transaction, excluding all options for intermediation. The client program for this payment system is its basic component. All client programs that are running simultaneously on different software are connected to each other and form a peer-to-peer network. Each node of such a network is equal and self-sufficient.

According to the information recorded in the Bitcoin SV protocol, the use of Layer 2 scaling values (e.g. Plasma) is prohibited. In addition, the scripts OP_INVERT, OP_MUL, OP_LSHIFT, OP_RSHIFT are returned, the limitation of 201 opcode for a single script is excluded. In other words, there is a return to the original Bitcoin blockchain. 

From the innovation, attention should also be paid to the anti-duplication function, which will be included in the Bitcoin SV network. Thanks to this, users will be able to carry out transactions in the BCH or BSV chains, while not worrying about the likelihood of double payment. As soon as the ecosystem demonstrates its readiness, this change will be implemented.

The function of making transactions without special confirmations will also take place in the Bitcoin SV blockchain. It will allow users to transfer electronic funds instantly. This change is twofold in that, with its advantage, it makes the system more open and vulnerable to double spending.

How Bitcoin SV works

As you know, Bitcoin SV is a fork of the original Bitcoin. This means that it has a similar operating principle. A blockchain is a ledger that includes a sequence of blocks. For each block, an original name is provided, containing the necessary information regarding the previous block and the key from the next.

The principle of chain creation is presented as follows:

1. Transactions are reflected on all nodes.
2. Each node stores its ongoing transactions into a block.
3. Each node looks for a solution to the cryptographic problem of the corresponding block.
4. When the correct solution is found, the block is transferred to all nodes.
5. A block is accepted by the nodes, provided that all operations in it are valid and not completed.
6. The nodes accept the block, after which work begins on creating a new block in the chain. In this case, the hash of the block previously received is used as the previous one.

The longest chain is usually assumed to be correct by the nodes, so they continue to provide further expansion. It so happens that two nodes simultaneously transmit different variants of the next block. Here, work begins first with the node that was received first, but the second is saved for use if it turns out that it was longer. So, the connection will be broken when the next Pow solution is found, and one chain will become longer, and the nodes from the previous chain are rebased to the used chain.

Bitcoin SV advantages and disadvantages

The main advantages of the Bitcoin SV project are the following factors:

1. Not a bad option for miners to earn money. At the present time, when the cost of bitcoin is declining, most miners are in search of all possible ways to earn money with the equipment they possess. So, ASIC devices are quite acceptable for BSV mining. However, this option is suitable for use as an alternative.
2. Now BSV is in the TOP 10 cryptocurrencies, firmly occupying the 8th place in the rating. This is due to the high cost of Bitcoin CB and its capitalization, which are combined with the high liquidity of the coin. This is what provides the great interest of most traders, which, accordingly, has a positive effect on the growth dynamics of the cryptocurrency.
3. If the organizers of BSV make their plans a reality, then this will cause an increase in the value of the coin. Such a result will provide great profit to the holders of this electronic currency.

By the way, the BSV development team and organizers are proposing the following changes:

• introduction of a new block size (128 MB);
• elimination of the current shortcomings by returning to the Bitcoin Cash blockchain, which was formed immediately as a result of the separation of the original bitcoin;
• using cryptocurrency exclusively as a means of payment, excluding any smart contracts, applications, etc.

Although the changes planned by the nChain team are quite effective and attractive, BSV also has a number of disadvantages:

1. No innovation is foreseen. Of course, BSV "copies" the original bitcoin, therefore, it is completely unable to stand on a par with its brother.
2. High competition. The BSV cryptocurrency already has two serious competitors, and they are known to most users - the main blockchain Bitcoin and the network that was formed together with BSV, that is, BCH ABC. Some BSV indicators are already lagging significantly behind those of their competitors.
3. Centralized BSV. Due to the large volumes of hashrate, the network is under the control of several companies. In other words, these companies directly affect the value of bitcoin , as well as its further direction in development. Of course, many users did not appreciate this approach.
4. Uncertainty in relation to the founders of the project. After the survey, it turned out that the majority of representatives of the cryptocurrency society have a negative attitude towards the founders of the Bitcoin Cash hard fork. So, K. Wright is known as a deceiver who is only capable of making loud statements to excite the public, and K. Eyre is a businessman who wants to cash in this way.
5. High volatility of the BSV rate. According to statistics for the last month, the rate of Vitcoin SV has been in a tense moving state all the time. The lack of any kind of stability certainly scares users, investors and miners alike.

Of course, it is too early to consider options for investing in the Bitcoin SV cryptocurrency, as there are too high indicators of uncertainty about the future of this project from users. Today, Vitcoin SV is a project where you can make money on short-term terms, since the value of the coin is experiencing constant jumps. However, this is a negative factor when considering it as a long-term investment.

At the same time, experts note that the cryptocurrency has every chance of changing the current situation. Now investors are closely watching how the project is developing in order to be in the center of events when an opportunity for profitable investment appears.

Is Bitcoin SV mining possible?

Cryptocurrency mining is possible on any ASIC hardware that can support the SHA256 algorithm. So, Craig Wright founded a mining pool called SVpool. It does not provide for the presence of commissions when making transactions, while rewards are paid every day. SVpool servers are located in China and Europe.

Is mining Bitcoin SV profitable?

It should be noted that when creating the Bitcoin SV cryptocurrency, Craig Wright focused on a positive and dismissive attitude towards miners. In other words, BSV was supposed to enable miners to earn decent money on its direct production, namely, several times more than it was previously with Bitcoin Cash. However, today users strongly doubt the profitability and efficiency of working with this cryptocurrency.

Recall that the founders of BSV were confident in the support of miners at the very beginning. In their opinion, it should be so strong and large-scale that it would play a decisive role in the disappearance of the main competitor of this project - Bitcoin ABC. According to the plans, the miners had to choose BSV, providing Bitcoin ABC with insufficient hashrate. However, in reality, the situation has changed radically.

So, since the day the two cryptocurrencies were created, as a result of a scandalous fork, the networks have managed to accumulate approximately equal hash rates. However, one cannot ignore the changes between them that have formed in the mining economy.

Research has shown a clearer picture of the profitability of BSV and BCH mining in relation to the original Bitcoin. The following factors were taken into account:

• current coin prices;
• mining difficulty level;
• reward for the found block.

The results showed that mining BSV cryptocurrency allows you to earn 63% less electronic funds than mining the original Bitcoin . At the same time, cooperation with BCH brings in 4.1% more profit than the main cryptocurrency. The current situation allows us to conclude that the companies that carry out BSV hash rates are working at their own loss. It is noteworthy that such situations did not take place before the fork.

It turns out quite ironically: mining by BSV miners, which proclaimed itself to be a friendly coin in relation to miners, is several times less profitable than mining by BCH miners. By the way, the latter also made statements that their network would serve as a profitable foundation for future investment as an alternative to classic Bitcoin.

I must say that Bitcoin SV has some difficulties with centralization. The largest cryptocurrency mining pool is BTC.com. Today it is 16.5% of the Bitcoin hash rate. Control in this case is carried out by Bitmain. In total, they mine about a third of the often given cryptocurrency. As for BSV, its main part is mined through the SV Pool and Coin Geek pools in the amount of 20.8% and 36%, respectively. These pools are interconnected with the creator of the BSV coin, that is, K. Wright.

It is also worth paying attention to the size of the blocks. Thus, both networks formed as a result of the Bitcoin Cash fork made promises to increase them. However, in practice, promises have vanished into thin air. For example, the block size of the original Bitcoin is now 4 MB. The creators of BCH managed to generate a 32 MB block, which became a record one, but the network routinely works with blocks of 50 kb in size. BSV also promised to increase blocks to several terabytes, but in fact the blockchain works with blocks of 13 kb in size.

This picture explains the lack of trust in the "newbies" in the world of cryptocurrency from users and investors. However, soon everything may change.

How to buy or sell Bitcoin SV?

The Bitcoin SV cryptocurrency can be received in several ways, the main of which are the following:

• mining with ASIC devices;
• GPU mining of the most profitable coin and its instant sale through exchanges that provide for exchange for BSV;
• purchase on stock exchanges;
• taking part in the development of the project, for which an appropriate remuneration is due.

By the way, the cryptocurrency has been adopted by the largest exchanges that previously collaborated with Bitcoin Cash. The most common trading platforms where you can buy Bitcoin CB are Poloniex, Upbit, Gate.io, Binance.

Bitcoin SV to ruble rate

Today, namely 08/03/2019, the Bitcoin SV rate to the ruble is 0.00010 BSV, that is, 1 BSV is equal to 9 885 RUB. The situation is ambiguous, since the value of the cryptocurrency changes every day and it is very difficult to predict the further behavior of its price.

Bitcoin SV to USD rate

On 03.08.2019 the Bitcoin SV rate against the dollar is 0.0066 BSV, that is, 1 BSV is equal to 151.44 USD. There is a picture of ups and downs in the value of the coin, which alarms investors and netizens.

Bitcoin SV to EUR rate

Of course, the Bitcoin SV rate depends on how the rate of a particular currency changes, in this case, the euro. So, as of 08/03/2019. the cryptocurrency rate against the euro is 0.0074 BSV, that is, 1 BSV is equal to 136.04 EUR. The situation, as in other cases, is unstable.

How to Earn Bitcoin SV Safely Using Hardware Wallets?

Many already know that this fork is characterized by an increased risk of using a replay attack. So, at the moment of sending one coin, there is a danger that a similar transaction is formed in another branch of the system.

This means that the coins will be lost. How does this happen:

• sending electronic funds to a particular service, exchange or exchanger that does not support this fork;
• transfer of electronic money to a third party;
• purchase via the Internet.

Such operations can be carried out by absolutely any user or intruder. However, often the transfer of nodes is carried out automatically. In such a situation, a completely logical question arises: "What to do to bypass this shortcoming of the system?" There are several options for additional protection of your own funds, the main of which are presented below.

Mixing coins.

In this case, you need to find a user who has already severed his own coins of two blockchains, agree with him about sending a small amount of money to the public address of interest. This operation cannot be duplicated, because it requires a completely different signature.

Here you need to understand some of the features. The following combinations are allowed: BTC-ABC and BTC-ABC or BTC-SV and BTC-SV. This produces the same and necessary result, namely, the coins will be separated, and the double reproduction will be reduced to "zero". If coins are stored in different wallets, such manipulations should be carried out with each address. Alternatively, you can combine all the coins in one wallet and then mix them. This method has an important drawback, namely, the high probability of undermining confidentiality due to the disclosure of information regarding assets and conducted transactions for the owner of disconnected coins.

Application of Locktime.

Locktime is a script command. It sets the time for spending electronic money. In simple terms, you can determine the height of the block, as well as the date when the operation can be entered into the network. This method requires additional knowledge that can be obtained on the Internet.

Using Checkdatasig.

If the second method involves the use of the Locktime command, since the difference in the height of the blocks of both blocks required this, then the Checkdatasig command will be relevant here. It can be used in the context of those clients who support Bitcoin Cash ABC. If there are attempts to send a transaction involving this command in Bitcoin Cash SV, they will be immediately rejected. It is noteworthy that it was the Checkdatasig team that became one of the reasons why the creators of Bitcoin Cash dispersed, dividing into two camps.

What is Checkdatasig? It is a command that enables users to import and validate messages outside of the blockchain. According to the developers, this function will significantly expand the boundaries of using the BCH ABC platform in various areas of life. The main advantage of the Checkdatasig method is that there is no need for a second operation after the first one has been performed.

Specialist tips for token holders in case of a fork:

1. In no case should you rush into any action. It is important to wait for the situation to be investigated and commented on by leading experts.
2. Be sure to wait until the number of tutorials is released in sufficient quantities. Among all the existing ones, it is recommended to choose those that are most suitable in this or that case.
3. Any decisions related to the cryptocurrency after its fork should be dependent on the information that has been collected so far. There is no need to "dive" headlong into the pool without waiting for official information regarding this or that event.
4. The first operations are recommended for small amounts. In the event of a failed transaction, the loss will be negligible.

By following the above tips, users can better protect their own funds.

Where to store Bitcoin SV

The topic of storing cryptocurrency tokens was considered by the organizers of the project. To store Bitcoin SV correctly, you need to heed the advice of Bitcoin SV representatives. They presented to the public a selection of wallets for storing BSV electronic money, which, by the way, did not follow from other teams of the cryptocurrency market .

Tops the list of the most recommended Centbee wallets (beta), which is presented in the beta version. It is a priority among other options due to its simple interface and fast operations in the system.

In second place is CashPay, which exclusively serves BCH and all its subsequent derivatives.

In third place in the TOP 5 wallets is Coinomi, which is able to work not only with CB bitcoins, but also with other 500 types of cryptocurrencies.

The Guarda e-wallet is capable of processing the most popular cryptocurrencies and is an ideal option for ETH holders.

And finally, it closes the rating of recommended wallets Pixel Wallet, but now it is not available for use.

How much is Bitcoin SV in total

Experts told how much Bitcoin SV may exist in all - 21 000 000 BSV . The formation of new tokens occurs through mining similar to the original cryptocurrency.  

Bitcoin SV emission

It should be noted right away that the issue of Bitcoin SV is limited. Its limit, as mentioned above, is 21 000 000 VSV. The history of Bitcoin SV shows that Bitcoin Cash coin holders were able to exchange existing coins for BSV tokens at a 1: 1 rate.  

What is secured by Bitcoin SV

Touching upon the topic of securing Bitcoin SV, it is worth highlighting the fact that the BitcoinCashSV platform is technologically losing a little at the moment and there are several reasons for this. It is inferior to BSV not only to its main competitor ABC, but also to the original Bitcoin system. Users also do not like Craig Wright, who practically repulses the public with his own behavior. So, the nickname that stuck to him in the community of crypto coin holders speaks for itself - "fake Satoshi".

Analysts are still cautious about the BSV project, continuing to monitor its innovations and course trends.

As for exchangers and platforms for trading cryptocurrency, the situation here is completely different. The trade is extensive. Notably, several platforms have made statements of support for both projects.

What exchanges trade BSV:

• Coinbase;
• Bittrex;
• Binance;
• Kucoin;
• OKEX;
• Huobi and others.

Most of the e-wallet vendors are also worth mentioning and have added support for both projects. However, there is an exception here - this is the Ledger Nano S wallet, the developers of which refused to cooperate with any of the forks. The refusal to support these cryptocurrencies is justified by the lack of a leading link among the emerging dispute. As soon as the main element is determined, the manufacturers of Ledger Nano S promise to reconsider their decision.

The future of Bitcoin SV

The future of Bitcoin SV today is somewhat shaky, if you take into account all of the above (we wrote an article about the future of cryptocurrencies in general - here ). However, good prospects should not be ruled out, experts say. If the leader of the SV group, Craig Wright, fulfills all the promises that he made publicly, then an improvement in the situation of the bitcoin SV cryptocurrency in the market may well occur. It is important that the team leader stops focusing on constant disputes and scandals with a competitor ABC and takes appropriate actions aimed at developing his own project. One cannot ignore the fact that the Bitcoin SV project was qualitatively equipped at the time of its appearance and ascent - it is listing on most exchanges in automatic mode, great popularity among users and investors, TOP-10 in terms of capitalization. Not every project in the cryptocurrency world can boast of such a thing, but it seems that Wright takes it for granted.

The project has all the possibilities to fully replace the original Bitcoin platform. But due to the behavior and attitude of the team leader, it is impossible to predict the embodiment of this in reality. The hard fork happened relatively recently, so it is difficult to judge its further development. Of course, the Bitcoin SV project has both advantages and disadvantages, which experts will tell about below.

The main advantages of the Bitcoin SV project:

• good starting conditions;
• attractive conditions for miners;
• high performance and large scale of the project, grandiose plans to improve these indicators (performance, scalability).

Along with the strengths of the Bitcoin SV team, there are also disadvantages.

The main disadvantages of the Bitcoin SV project:

• high rates of competition;
• high centralization of mining;
• a reputation clouded by scandals;
• presence of technical problems, namely high vulnerability to double-spending attacks, as well as block reorganization;
• doubts on the part of experts about the projects ability to translate into reality technical solutions that could support such a large block size.

The last point is considered in the context of the fact that Bitcoin Cash coped with the processing of 32 MB blocks quite problematically, and Vitcoin SV completely swung at 128 MB, and later at 1 TB.

In view of the above, there is no point in pinning high hopes on the Bitcoin Cash SV project and the fact that it will begin to develop separately from the market. What does it mean? This dependence of the cryptocurrency ensures that its value is proportional to the overall market situation.