Over the past decade or so, Bitcoin has been more than just an asset. It’s been a financial revolution that can’t be overstated. From revolutionizing how money and value are being sent across borders to offering a new means of transaction processing, Bitcoin has truly been a force to be reckoned with.
However, Bitcoin in itself isn’t perfect. The asset is still plagued by several operational issues, many of which have angered its developers. Looking to do something about the problems, some of these developers have gone on to create their versions of Bitcoin.
The creation process, which is called a “hard fork,” has led to the founding of different Bitcoin versions. The most popular are Bitcoin Cash (BCH) and Bitcoin SV (BSV).
Understanding the Forked Coins
Bitcoin’s genesis block — the first mined Bitcoin block — was mined on January 3, 2009. While the coin has gone on to change the world, it suffers from some significant scalability issues. Transactions can take time to be settled, and not many transactions can even be processed in a second.
In 2017, Bitcoin developers thought of Bitcoin Cash as a means of solving these scalability and speed issues. Bitcoin Cash’s blockchain will have larger blocks, meaning that they can take in more transactions and process them in time. That was the primary gambit for BCH proponents.
Detractors of BCH also pointed out some issues. For one, the larger blocks will require a more complex mining process that could be detrimental to miners who don’t have so much computing power. This means that the network could essentially get centralized among miners with more advanced equipment.
Regardless, Bitcoin Cash was eventually born in 2017. The hard fork came alive, and investors were free to buy the new coin.
Interestingly, Bitcoin Cash itself had another hard fork. In late 2018, Bitcoin Cash developers had different ideas on how to take the project forward. There are the proponents of Bitcoin ABC (BABC) and Bitcoin Satoshi Version (BSV).
Bitcoin ABC is similar to Bitcoin Cash, but with some primary differences. First, it reinvests 8 percent of all block rewards towards network improvement — essentially, giving funds to developers to keep their work going. On the flip side, Bitcoin Cash only gets donations as a funding source.
As for BSV, it is more varied from Bitcoin Cash. Its focus is to maintain network stability by offering even bigger block sizes than BCH.
Can BSV Surpass BCH?
Over the past few years, Bitcoin Cash and Bitcoin SV have had their strong moments. Both assets have shown promise, especially when it comes to working towards the true vision of Bitcoin. However, none of them has primarily been able to meet the standards of the original Bitcoin.
Currently, Bitcoin Cash is more valuable than Bitcoin SV. the former is tanked at #22 on the CoinMarketCap list with a market cap of $10.4 billion and a price of $550. The latter is ranked at #61 with a market cap of $2.7 billion and a price of $144 per token.
An Infamous Proponent
There are many reasons why the outlook for BSV remains bleak. Most hardly compare to the reputation of its most vocal proponent, Craig Wright.
Wright is a notorious computer scientist who currently heads nChain Labs. He was one of the earliest Bitcoin core developers, and he has gotten a rather terrible reputation for claiming that he is Satoshi Nakamoto. Wright began pressing his claims about two years ago, and he has since sued several people for disputing him.
So far, Wright’s reputation has done more harm than good. Binance, the world’s largest exchange, delisted BSV in March 2019 after Wright went after a crypto commentator who disputed his claims of benign Satoshi Nakamoto. Several other exchanges have delisted the asset, making it difficult for Wright and BSV to access liquidity.
Wright also sued several Bitcoin-based organizations, including Bitcoin.org, for posting the famous Bitcoin whitepaper without his consent earlier this year. As he argued, Bitcoin is his invention, and these platforms would need his permission to publish the whitepaper. In response, several companies published the Bitcoin whitepaper on their websites as an act of defiance.
Besides all of this, Wright is also facing a massive lawsuit from the family of David Kleimann – another Bitcoin core developer. Wright reportedly offered to help David’s family to convert his Bitcoin to cash after he died in 2013. He has failed to make good on his promise to this day. The trial is still going on, although the Kleiman estate remains heavy favorites to come out of this one on top.
It’s said that no publicity is bad publicity. Well, all of the publicity that Wright has generated thus far has been nothing positive for BSV.
Security Breaches Raise Concerns
There is also the fact that BSV seems inferior to BCH in terms of security. This year alone, the BSV network has suffered three 51 percent attacks. During one of the exploits, the attacker reportedly tampered with 10 hours’ worth of transactions on the BSV blockchain, causing massive havoc and putting transaction records at risk.
The Bitcoin Association — an advocacy group for BSV — stated that the attacks were unsuccessful. Still, the fact that attackers can cause such concerns over a network isn’t a good sign. Developers looking to build will most likely not find the BSV network to be a breeding ground for innovation. With investors already skeptical, things aren’t exactly looking good for BSV.