Around 2017, some Bitcoin community members decided to fork off and create their Bitcoin Cash. In 2018, Bitcoin Cash was further split into Bitcoin Satoshi Vision (Bitcoin SV or BSV) by Craig Steven Wright and Calvin Ayre, with the main reason for the fork being block size.
Bitcoin block size is limited to 1 MB, Bitcoin Cash increased it to 32 MB, and Bitcoin SV further stretched it to 128 MB before removing the size limit completely in 2020. Larger the block size, the faster the transaction handling and payment processing. This eliminates wait times and backlogs. As of April 2020, BSV is the 6th largest cryptocurrency in the world.
Bitcoin SV Mining
Mining is the process wherein orders are completed, transactions are validated, and the payment is in Bitcoins. The basic process is:
- Groups of computers (nodes) try to place as many transactions as possible in a block. With no block size limit in Bitcoin SV, miners will find it easier to scale operations and increase profitability.
- Each node works on finding proof-of-work (POW) for its block. With POW, one party proves to the other that significant computational efforts have been made to achieve some purpose. This POW is sent to all nodes, which, in turn, will confirm that all transactions in it are valid.
- The node will collect its reward only once it finds and demonstrates a solution to the hash algorithm for a block.
Miners are rewarded with many BSV corresponding to the current block subsidy along with all transaction fees included in the said block. Bitcoin SV mining is done almost in the same way as Bitcoin and Bitcoin Cash. The same SHA256 algorithm is used for mining.
How to mine Bitcoin SV?
Please note that Bitcoin SV mining requires significant financial resources before it can become profitable. BSV mining (or any other cryptocurrency) requires top-tier computing resources, setting up, and maintenance costs and other overhead expenses.
- Hardware: Mining requires specially developed mining machines known as ASICs. ASICs are very expensive and setting up a decent operation will require more than one ASIC.
- Software: One is advised to set up a Bitcoin SV wallet because the mined BSVs will go there. They should consider choosing one carefully after understanding the safety features and their investment vision. The application software used for mining is the same as Bitcoin and Bitcoin Cash. One must check if their ASICs have pre-installed software. Some of the popular mining software are CGMiner, BFGMiner, MultiMiner, etc.
- Mining Pool: The initial and other overhead costs can restrict profitability in the beginning. It is recommended that the investor joins mining pools such as Mining-Dutch, ZPool, F2Pool, etc., when they start mining for the first time.
Should one mine Bitcoin SV?
Yes, as long as it is profitable. The profitability of BSV mining depends on several factors. Miners or a pool of miners receive block rewards for solving a block and adding it to the blockchain. Currently, the block reward stands at 6.25 Bitcoin SVs. Factors affecting profitability are:
- Computation prowess of the hardware machinery.
- Power consumption of the ASICs and the cost of electricity.
- Pool fee (if the user has joined a mining pool).
- Bitcoin SV price.
The current Bitcoin SV price stands at $354.06 (approx. INR 26,150). Check out Bitcoin SV Prediction and Bitcoin SV’s long-term prospect and vision to estimate the profits from mining Bitcoin SV.
Bitcoin SV Price Prediction
On 23 November 2018, Bitcoin SV price was at an all-time low of $36.87. While BSV price has significantly fluctuated based on the general cryptocurrency market and Bitcoin price levels aided by rumors on Craig Wright, the general price trend is slow and steady growth. Despite the raging pandemic, Bitcoin SV price hit an all-time high on 16 April 2021 at $491.64.
Bitcoin SV node software has been upgraded, leading to increased performance and support for chains of unconfirmed transactions. Currently, 18 million Bitcoin SVs are in circulation. Cryptonewsz.com, TradingBeasts, Wallet Investor, and DigitalCoinPrice predict that BSV prices will increase anywhere between 12% and 60% in the future.
Unlike Bitcoin, BSV creators believe that its value is derived from its real economic utility rather than a group of people simply holding on to Bitcoin for price rise without corresponding usage.
Based on the constant software upgrades, block size upgrades, and creator vision, Bitcoin SV is expected to stay for the long term. Bitcoin SV price predictions by many show increasing value. However, the cryptocurrency market is volatile with severe competition. Investors are advised to conduct their research and go through multiple sources to understand and form their opinions on future Bitcoin SV prices.