Bitcoin SV (BSV) functions according to the original Bitcoin Whitepaper but instead uses a significantly larger block size.
This guide will cover the fundamentals of BSV and how you can buy Bitcoin SV online in 2022.
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What Is Bitcoin SV?
BSV is the native cryptocurrency of the Bitcoin SV blockchain. It functions exactly the same as Bitcoin but uses a significantly larger block size. It was founded in 2018 from a hard fork of Bitcoin Cash. It was believed that the scalability features used by Bitcoin Cash were not enough to meet future demand. This, combined with a desire to return to the original Bitcoin design represented in version 0.1 of the Bitcoin protocol caused the devs to brand off.
Bitcoin SV was originally designed with a block size of 128MB, though this was increased to 2GB in 2019. To put this into perspective, Bitcoin had a block size of 1MB when it was founded. BSV now has a block size of 2000MB. The protocol used by BSV allows for block sizes to be adjusted based on the network’s consensus mechanism. It also adds personalisation features for miners, who can choose the size of blocks they want to mine. Due to its larger block size, BSV can process more transactions at once and as a result, miners can earn more transaction fees. This works as an incentive for miners to continue mining even after block rewards are no longer available.
Bitcoin SV aims to achieve higher levels of stability to appeal to prospective investors and enterprise-size applications. To achieve this, it uses a fixed protocol designed to be regulation-friendly and scalable. By focusing on these features, it’s predicted that BSV will appeal to a more mainstream audience which will promote interest from enterprises. However, it’s hard to determine its success as BSV is still relatively new.
As of August 2021, BSV has a market cap of $3,193,731,661 with 18.8 million tokens in circulation. When it meets its market cap of 21 million, its estimated value would be $3,553,201,975. One BSV token costs $168.47 and reached highs of $441 in April 2021.
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How Does Bitcoin SV Work?
Bitcoin SV is a Proof-of-Work protocol, where miners earn block rewards for mining new blocks and adding them to the blockchain. These block rewards work as a financial incentive that enables miners to allocate more resources to their mining efforts. For BTC, block rewards are reduced by 50% every 4 years, which decreases the number of incentives for them to keep mining. However, with Bitcoin SV, miners can choose the size of the block they want to mine. By choosing larger blocks, miners can earn more transaction fees which counter the issue of diminishing bock rewards.
Bitcoin SV currently conducts around 300 transactions per second and is able to manage around 2800 transactions per second if necessary. The BSV team has also stated their Gigabit Testnet (GBTN) can process up to 5,500 transactions per second using its unbounded block size. In May 2020, TAAL, a Bitcoin SV-focused blockchain service provider processed a 369MB block. This milestone showed that BSV has processing capability significantly better than those of BTC or BCH.
Now that you know what Bitcoin SV is and how it works, you can use one of the brokers above to buy Bitcoin SV. However, if you’re still unsure about how to get started, continue reading!
How to Buy Bitcoin SV Online
Despite being linked to Bitcoin, it is harder to buy Bitcoin SV as it is only available on a limited number of exchanges. As of August 2021, it can be found on OKEx, Huobi Global, Upbit, and BitWell.
Here’s a step-by-step guide on how to buy Bitcoin SV online:
Step 1: Create an account and verify it
Step 2: Fund your account
Congratulations, you’ve just bought your first Bitcoin SV!
How to Trade Bitcoin SV
Due to its decrease from a high of $441, Bitcoin SV is not commonly traded amongst investors. However, you can still trade the token using any of the exchanges listed above.
On the exchange, select the cryptocurrency you wish to trade your Bitcoin SV for. Select the number of tokens you want to buy and click “trade” to complete your transaction.
Your chosen cryptocurrency should then appear in your wallet.
