Bitcoin SV Vs. Bitcoin – Understanding How BTC and BSV are Different
Bitcoin SV is one of the cryptocurrency markets newest digital currencies. However, it is also one of New Zealand’s most misunderstood. Most Kiwis don’t understand the difference between Bitcoin SV, Bitcoin, and Bitcoin Cash. Here, we’ll explain what these are. We’ll also look at Bitcoin SV vs. Bitcoin controversy, and how this affects the wider cryptocurrency market.
Bitcoin SV Vs. Bitcoin
Today, the world is aware that Bitcoin was created in 2009, by someone known as Satoshi Nakamoto. However, most people do not realize that Bitcoin today is very different from the Bitcoin that Satoshi Nakamoto described in the original Bitcoin white paper.
Bitcoin and Bitcoin SV Key Differences
To understand the key differences between Bitcoin SV and Bitcoin, it is important to understand how both coins work.
When a Bitcoin (or Bitcoin SV) user sends coins from one wallet to another, the transaction is bundled into an encrypted block of other recent transactions. Bitcoin miners then decrypt these blocks to verify transactions and add them to the Bitcoin (or Bitcoin SV) transaction ledger.
With Bitcoin at present, every block has a fixed 1 MB size. As a result, only a handful of transactions can be processed at a time. This leads to high fees. Transactions can also take several hours to process.
Because transaction block sizes are so low, some argue that Bitcoin needs to be upgraded. Bitcoin SV, therefore, allows Bitcoin SV transaction block sizes to be unlimited. Developers also claim that Satoshi Nakamoto always intended to increase block sizes, as Bitcoin grew in popularity.
- Unlimited Bitcoin SV block sizes mean that BSV transactions settle instantly.
- Bitcoin SV transactions are almost fee-free.
- Increased network speeds mean that the Bitcoin SV blockchain is capable of data storage and smart contracts.
Proponents of Bitcoin SV also claim that methods used to increase Bitcoin transaction speeds without increasing block sizes have left the BTC network with unnecessary security vulnerabilities.
Bitcoin SV Vs. Bitcoin Controversies
At face value, unlimited Bitcoin SV transaction block sizes seem like a good idea. However, proponents of BTC argue that smaller transaction block sizes increase security. 1 MB block sizes prevent spam being sent across the Bitcoin blockchain. 1 MB block sizes also increase the decentralization of the Bitcoin blockchain, by making it difficult for single groups of miners to dominate the network.
Some also argue that Bitcoin does not need larger block sizes. When people need to make smaller, fee-free cryptocurrency payments, they can already do so using other coins like Litecoin.
Bitcoin SV Claims There Can be Only One Cryptocurrency
In 2015, an Australian computer scientist named Craig Wright began claiming that he was Satoshi Nakamoto. Now Craig Wright works as a lead BSV developer for a private company called n-Chain, which operate Bitcoin SV.
- Craig Wright believes that there should be only one world cryptocurrency.
- Wright considers any coin which is not BSV a Ponzi scheme.
Because of attacks on other cryptocurrency projects, Bitcoin SV does not enjoy support from other members of the cryptocurrency community. Many members of the community also claim that Craig Wright is not Satoshi Nakamoto. If this is the case, this would undermine the legitimacy of BSV.
Can Bitcoin and BSV Coexist?
By claiming Bitcoin SV will replace every other cryptocurrency currently on the market, Craig Wright and n-Chain are accused of attempting to privatize cryptocurrency.
From a logical perspective, it is also unlikely that BSV will ever wholly dominate the current cryptocurrency market. Bitcoin and Bitcoin SV will, therefore, likely coexist for quite some time. However, both coins are direct competitors, despite sharing similar branding.
Last updated 16th January 2020