HALVING OF BITCOIN CASH ($BCH) AND BITCOIN SV ($BSV) 2024
- support70973
- 10 lug 2023
- Tempo di lettura: 9 min
Aggiornamento: 8 apr 2024
One month before the halving of his master BITCOIN, presumably in April 2024, there will also be the halving of BITCOIN CASH ($BCH) and BITCOIN SV ($BSV).
Yes, it's true, they are two huge scams, but the Halving event should still be pursued with a view to long-term speculation.
HISTORY OF THE BIRTH OF BCH AND BSV
Bitcoin Cash (BCH) and Bitcoin SV (BSV) are two cryptocurrencies that emerged as a result of a split, or "hard fork," from the original Bitcoin network. This split was caused by differences of opinion within the Bitcoin community regarding how to address scalability and governance issues.
The story begins in 2008 when the mysterious individual or group known as Satoshi Nakamoto published the Bitcoin whitepaper, proposing a decentralized digital money system based on a technology called blockchain. In 2009, the first block of Bitcoin was mined, marking the beginning of the Bitcoin network.
In the following years, the number of transactions on the Bitcoin network started to grow, putting strain on the system's scalability capabilities. This led to a debate within the Bitcoin community about the best solution to tackle this issue.
In 2017, the debate reached its peak when a controversy over block size led to a division within the community. A group of developers and miners argued that increasing the block size of Bitcoin would solve the scalability problem by allowing more transactions to be included in each block. This group proposed to implement an upgrade called SegWit2x.
However, another group of developers led by Roger Ver and Jihan Wu believed that increasing the block size was not enough and that the original vision of Bitcoin as a fast and low-cost peer-to-peer money system was being compromised. This group proposed an alternative solution: a hard fork that would create a new cryptocurrency called Bitcoin Cash (BCH).
On August 1, 2017, the hard fork took place, and Bitcoin Cash was born. The main difference between Bitcoin Cash and Bitcoin was the block size. While Bitcoin had a maximum block size of 1 MB, Bitcoin Cash increased this size to 8 MB, allowing for greater transaction capacity.
In November 2018, another split occurred within the Bitcoin community. This time, Bitcoin SV founder Craig Wright and his group of supporters, including Calvin Ayre, opposed the implementation of Bitcoin Cash and proposed another hard fork. Claiming to be restoring Satoshi Nakamoto's "original vision," Wright and his group created Bitcoin SV (Satoshi's Vision).
Bitcoin SV aimed to further increase the block size, enabling an even greater number of transactions. Additionally, Wright claimed to be Satoshi Nakamoto himself, but these claims have been widely disputed and rejected by most of the cryptocurrency community. Since then, Bitcoin Cash and Bitcoin SV have continued on separate paths as independent cryptocurrencies.
While Bitcoin Cash and Bitcoin SV have continued as independent cryptocurrencies, they have continued to develop with slightly different goals and approaches.
Bitcoin Cash (BCH) has sought to maintain the vision of Bitcoin as a fast and low-cost peer-to-peer form of money. It has continued to increase the block size, moving to 32 MB in May 2018 and subsequently to 128 MB in May 2019. The goal was to enable an even greater number of transactions and reduce transaction fees.
Bitcoin SV (BSV), on the other hand, advocated for an even more ambitious vision. Craig Wright and his group sought to restore what they believed to be Satoshi Nakamoto's "original vision" for Bitcoin. They increased the block size to 128 MB and claimed to be working towards nearly unlimited scalability. Additionally, they also implemented some technical changes to improve the system's efficiency and promote the use of Bitcoin SV for enterprise applications.
Both cryptocurrencies have faced challenges and criticisms along the way. The division within the Bitcoin community has led to some confusion and discussions about governance and the future of cryptocurrencies. Furthermore, the rivalry between Bitcoin Cash and Bitcoin SV has often resulted in public conflicts and legal battles between supporters and key figures of both cryptocurrencies.
However, it is important to note that the adoption and acceptance of both cryptocurrencies have varied over the years. While BCH and BSV have continued to be traded on cryptocurrency platforms and used for specific transactions and applications, Bitcoin (BTC) has maintained its dominant position as the most adopted cryptocurrency with the widest acceptance.
Ultimately, the birth of Bitcoin Cash and Bitcoin SV was the result of differences of opinion within the Bitcoin community regarding scalability and the project's vision. While both cryptocurrencies have attempted to address these challenges in different ways, their impact and adoption have remained more limited compared to the original Bitcoin.
Since then, Bitcoin Cash and Bitcoin SV have continued to develop as separate cryptocurrencies, with their respective communities working to improve the functionality and adoption of their platforms.
Bitcoin Cash has seen the introduction of new features, such as CashAddr, an enhanced address format, and the implementation of opcodes that allow for the creation of smart contracts on its blockchain. Furthermore, improvements have been made to enhance transaction speed and scalability, including protocols like Graphene, which reduces transaction data size.
Bitcoin SV, on the other hand, has adopted a scalability-focused strategy and aimed for enterprise use of cryptocurrencies. The team has worked to further increase the block size, reaching 2 GB in 2020, stating that this block size would allow for massive transaction capacity. Additionally, features like tokens and smart contracts have been introduced on the Bitcoin SV blockchain.
Both cryptocurrencies have sought to promote adoption and usage of their platforms in various sectors. However, it is important to note that Bitcoin (BTC) continues to be the most widely accepted and utilized cryptocurrency, with greater liquidity and a more developed market.
It is important to emphasize that cryptocurrencies are a continuously evolving market, and dynamics can change over time. The competition between Bitcoin Cash, Bitcoin SV, and other cryptocurrencies continues, with the goal of improving performance, scalability, and adoption of their platforms.
However, the story of Bitcoin Cash and Bitcoin SV is an example of how differences of opinion within a community can lead to divisions and the creation of new cryptocurrencies.
While Bitcoin Cash and Bitcoin SV have attempted to address scalability issues and promote different visions of the Bitcoin project, time will tell what their long-term impact will be in the cryptocurrency landscape.
HALVING OF BCH and BSV
Bitcoin Cash (BCH) and Bitcoin SV (BSV) are both cryptocurrencies that emerged from a split of the original Bitcoin network. As a result, their halvings are not directly related to those of Bitcoin (BTC). However, both BCH and BSV have implemented similar block reward reduction mechanisms for their miners.
The halving of Bitcoin Cash (BCH) first occurred on April 9, 2020, approximately four years after its creation. Before the halving, the block reward was 12.5 BCH. After the halving, the reward was reduced by 50% to 6.25 BCH per block. BCH halving follows a similar pattern to Bitcoin, with block reward reduction occurring approximately every 210,000 blocks mined.
In the photo, the performance of BCH during its first halving.
As for Bitcoin SV (BSV), its split from the Bitcoin network happened just before the Bitcoin halving in 2019, so BSV inherited the same number of blocks already mined. As a result, the Bitcoin SV halving occurred at the same time as the Bitcoin halving.
The first halving of Bitcoin SV and Bitcoin took place on April 15, 2020, reducing the block reward from 12.5 BSV to 6.25 BSV.
The performance of BSV during its first halving
The halving is a significant event for cryptocurrencies as it affects the availability of new coins in the market and can impact price and demand. By reducing block rewards, the halving limits the supply of new coins, potentially leading to decreased inflation and increased scarcity of the asset.
It's important to note that the halving doesn't automatically guarantee an increase in cryptocurrency prices, as the market is influenced by many factors. However, the halving can play a role in market narrative and expectations, with investors seeking to anticipate the effects of the halving on price and market behavior.
The price of cryptocurrencies, including Bitcoin Cash (BCH) and Bitcoin SV (BSV), is influenced by a complex set of factors such as supply and demand, market sentiment, technological developments, and macroeconomic events. Therefore, it's not possible to provide precise forecasts on price behavior during halvings. However, we can provide a general overview of how BCH and BSV prices have behaved during past halvings.
In the case of Bitcoin Cash (BCH), its first halving occurred on April 9, 2020. Prior to the halving, the price of BCH experienced significant fluctuations. During the halving itself and in the immediate days following, the price remained relatively stable, without significant upward or downward movements.
However, it's important to note that cryptocurrency prices can be influenced by external events and market sentiment, which can have a significant impact on price fluctuations. Therefore, market dynamics may have played a more significant role in BCH price fluctuations than the halving itself.
As for Bitcoin SV (BSV), its first halving occurred simultaneously with Bitcoin's halving in May 2020. In the period leading up to the halving, the price of BSV experienced significant fluctuations, but these cannot be directly attributed to the halving itself. During the halving and shortly after, the price of BSV showed some volatility, with both upward and downward fluctuations.
Remember that price fluctuations can be influenced by a variety of factors, including general interest in cryptocurrencies, industry news, global market conditions, and other relevant events. Therefore, it's important to consider multiple factors and market conditions before drawing conclusions about price behavior during halvings.
THE ACCUMULATION STRATEGY
The accumulation strategy can be a potential approach to consider in anticipation of the halving of Bitcoin Cash (BCH) and Bitcoin SV (BSV), as well as Bitcoin (BTC). However, it's important to understand that the success of this strategy depends on many factors, including market trends, the supply and demand of the involved cryptocurrencies, and general industry dynamics.
The main idea of accumulation is to gradually accumulate an asset over time, taking advantage of buying opportunities when the price is considered favorable. The halving typically reduces the supply of new coins, potentially increasing demand and creating potential upward pressure on prices.
However, it's important to note that the halving doesn't automatically guarantee price increases. While supply may decrease, price is influenced by many other factors such as demand, investor sentiment, technological developments, industry news, and global market conditions. Therefore, there is no guarantee that accumulating BCH or BSV in anticipation of the halving will necessarily lead to positive returns.
If you decide to adopt the accumulation strategy, it's important to conduct thorough research on the involved cryptocurrencies, closely monitor the markets, establish a well-thought-out investment plan, and, if necessary, consult a financial advisor or cryptocurrency expert to make informed decisions.
Remember that investments in cryptocurrencies are inherently risky and can result in the loss of invested capital. Before engaging in any investment strategy, it's always advisable to perform a careful assessment of the risks and potential returns, considering your financial situation and objectives.
THE WEAKNESSES OF BCH AND BSV, AND WHY THEY SHOULD BE CONSIDERED SHITCOIN KINGS Like all cryptocurrencies, Bitcoin Cash (BCH) and Bitcoin SV (BSV) have weaknesses that deserve consideration. Here are some commonly raised weaknesses in relation to BCH and BSV:4
Limited adoption: While BCH and BSV have a user base and supporters, their adoption is generally lower compared to Bitcoin (BTC) and other more successful cryptocurrencies. This can limit the utility and acceptance of BCH and BSV as means of payment and stores of value.
Centralization: Some critics argue that BCH and BSV are more susceptible to centralization compared to Bitcoin. This is because larger mining groups and prominent figures within these networks may have greater control over governance and development decisions. This is the worst flaw for both BCH and BSV.
Competition within the community: The rivalry between BCH and BSV has often generated conflicts and divisions within the cryptocurrency community. These conflicts can impact cohesion and the ability to cooperate within the networks, leading to fragmentation and instability.
Limited acceptance: The acceptance of BCH and BSV as a method of payment or as trading assets may be limited compared to other more established cryptocurrencies like BTC or Ethereum (ETH). This can affect the liquidity and ease of use of BCH and BSV.
Distrust towards promoters: Particularly for Bitcoin SV (BSV), founder Craig Wright has claimed to be Satoshi Nakamoto, the creator of Bitcoin. However, these claims have been widely contested and rejected by the cryptocurrency community, leading to a certain degree of distrust and skepticism towards BSV and its key figures.
It's important to note that these weaknesses can evolve over time and that cryptocurrencies themselves are subject to continuous changes and improvements. Before making investment decisions, it's advisable to conduct thorough research on the involved cryptocurrencies, carefully evaluating both the positive and negative aspects.
Below are historical charts of BCH and BSV, which should be approached with caution. Based on historical data, it appears that Bitcoin SV is better suited for speculation, having already reached new all-time highs twice. On the other hand, Bitcoin Cash reached its highs at the time of its inception and has not shown the ability to achieve new ATHs, even during the previous bull run of Bitcoin.
DISCLAIMER : This is not financial advice, I'm just sharing our operations without ulterior motives, so if you lose money by doing the same thing, it will be exclusively your fault and you will assume all responsibility. #speculate
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