Why is Bitcoin (BTC) mining more profitable than Craig Wright’s Bitcoin SV (BSV)?
Bitcoin Cash (BCH) continue to worry investors and the community at large. At the moment, the asset is recording double digit losses while the price is flirting with $100. BCH is down 20% in the last 24 hours and still leading the market crash in this “crypto winter.”
Following the hard fork last month, Bitcoin Cash original chain was split in two chains: Bitcoin ABC, which is now Bitcoin Cash (BCH) and Bitcoin SV (BSV) which is led Craig Wright and his team. Weeks after the hard fork, Bitcoin SV community is still unstable probably because of the hash war between the split chains and the unprofitable mining. Indeed, Bitcoin SV has been so unappealing to miners in a way that Bitcoin (BTC) mining is 50% more profitable.
Prior to the hard fork, Craig Wright organized a hostile takeover of Bitcoin Cash in collaboration with CoinGeek’s founder Calvin Ayre. The purpose of the hostile takeover was for the new protocol to garner immense community support coupled with mining support. Wright was sure that Bitcoin SV will get the attention of the miners due to the alleged miner-friendly algorithm. He was so intent that he forewarned Bitcoin miners not to give their support to Bitcoin ABC (BCH) and its lead developer Roger Ver. He said this via Twitter message reckoning that he will end up selling Bitcoins if support does no go his way.
Bitcoin SV price, on the other hand, is the bull among the bears or the only green island in a sea of red. The asset is correcting higher by 22.45% while exchanging at $109.54. Bitcoin SV is up 36% against the BTC and has a market capitalization of $1.9 billion. It is ranked in the 5th position as per the data on Blockmodo and has a 24-hour trading volume of $263 million. Its immediate rival, Bitcoin Cash has been pushed to the 7th position in the market behind Tether USDT.
Both Bitcoin Cash and Bitcoin SV employ the same hashing algorithm referred to as SHA-256. Although the coins have the same mining algorithms, their similarities are scarce. In fact, when compared to Bitcoin (BTC), Bitcoin SV is 50% less profitable than BTC. On the contrary, Bitcoin Cash (BCH) is still 4% more profitable than Bitcoin (BTC). This means that BCH miners make a lot more compared to both BTC and BSV miners.
It is evident that the ongoing hash war between Bitcoin Cash ABC and Bitcoin SV has been favoring both assets. However, the civil war has left both communities battered as the hash rates crumble to the bottom lows in addition to the tight ranges witnessed in the past few weeks.
Bitcoin SV, however, is enjoying the loyalty of the miners in its camp even though they are struggling with low revenues compared to mining BTC and BCH. Cryptovest, a crypto news website reports:
“The reason is that until recently, a lot of mining power was producing BSV blocks, leading to a higher difficulty. At the same time, the Bitcoin mining difficulty adjusted downward by 15% to account for the lower number of miners.”