Bitcoin SV is up 33% in the past 24 hours — while Bitcoin falters as transaction fees increase and chain expands as Ordinals transactions become more crowded.
Is Bitcoin SV a better Bitcoin?
Buyers have flocked to Bitcoin SV, causing transaction volume to nearly triple since May 8. The token surged to a nine-week high of $44.6, up 54% on the day, before falling below $40 at press time.
Despite being in the top 100 following this performance, BSV fell to an all-time low on May 8, hitting a bottom of $28.9. Additionally, the token is down 92% from its all-time high of $490 set in April 2021.
BSV was created in November 2018 by a hard fork of Bitcoin Cash, which was hard forked from the original chain in August 2017.
Founders Craig Wright and Calvin Ayre claim that BSV fulfills Satoshi Nakamoto’s vision for a peer-to-peer (P2P) electronic money system — as outlined in the original white paper.
BSV offers block sizes of up to 4 GB, making it stand out from its competitors and thousands of times larger than Bitcoin’s 4 MB block size limit.
Additionally, since its inception, BSV has incorporated scripting commands to support native tokens, smart contracts, and other Ethereum-like features. Bitcoin followed in November 2021 with a Taproot upgrade — which later spawned the regular protocol.
BSV proponents point to the chain’s 50,000 transactions per second throughput and low transaction fees as reasons why BSV is the better bitcoin.
According to bitinfocharts.com, BSV transaction fees have spiked recently, but remain relatively low at an average of $0.0374. Meanwhile, Bitcoin’s average fee hit $31.91 as users flooded into BRC-20 tokens — clogging the network.
In view of the objective advantages of BSV over BTC, the issue of BTC block expansion has been brought up for discussion again.
Larger block sizes allow for greater scalability as more transactions (or other data use cases) can fit into a block – increasing capacity and reducing average transaction fees. However, this comes at the cost of decentralization – as few people are willing to run high bandwidth operating nodes.
Commenting on calls for BTC to increase its block size, analyst Dylan LeClair called proponents of the idea “idiots.”
Mark Harvey acknowledged that Ordinals significantly reduced BTC’s block size. However, referring to the first block size war, he noted that Bitcoin Cash is “slowly becoming irrelevant.”
To overcome network congestion and sprawl, Bitcoin developers are considering adding spam filters to Ordinals transactions, according to @frankdegods.
Bitcoin developers are trying to cancel orders pic.twitter.com/FOYCIKTcIS
— Frank (@frankdegods) May 9, 2023
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According to Cryptoslate