Bitcoin Cash (BCH) and Craig Wright’s Bitcoin SV (BSV) miners receive more than four times less in transaction fees within a year compared to what their progenitor, Bitcoin (BTC), miners’ receive in one day.
Bigger Doesn’t Always Mean Better
After Bitcoin Cash (BCH) split from Bitcoin, it increased its block size limit from Bitcoin’s 1MB to 8MB and later to 32MB. Subsequently, BSV increased this limit to 128MB after its hard fork from BCH.
These enormous block sizes were posited in a bid to reduce the transaction fees and boost faster payments. Currently, both BSV and BCH are capable of conducting faster and cheaper transactions than Bitcoin but are lagging behind in terms of miners’ earnings in transaction fees.
Shakepay noted that Bitcoin miners raked $540,000 in transaction fees in a day whilst BCH and BCV miners earned $130K combined within a period of one year.
“On July 31st, Bitcoin miners earned $540K in tx fees. In the last *12 months* BSV and BCH miners have only earned $130K in tx fees. Combined.”
In a day, Bitcoin (BTC) records over $500,000 in transaction fees whereas Bitcoin Cash (BCH) miners receive less than $200k in transaction fees as cited by a bitcoin partisan by the name Deater Bob (Awyee Bitcoin) on twitter. In April, five months down the line after the hard fork from Bitcoin Cash, BSV miners were still making losses.
Notably, bitcoin’s 500,000 daily transaction fees are tremendously low compared to payment behemoths such as Visa. Therefore, BSV and BCH have a long way to go before their miners can pocket considerable earnings.
Bitcoin SV and Bitcoin Cash’s Achievements And Reputation Remain Lackluster
Bitcoin (BTC) receives a lot of attention from retail and institutional investors due to its stellar price performance and mass adoption, unlike BCH and BSV which barely get noticed. As we reported, according to Square -which is the primary way retail investors’ access bitcoin (BTC) – BTC’s transactions hit an ATH of $125 million on the platform.
Also, much like the huge disparity with transaction fees, the median transaction value of BTC on a daily basis surpasses that of BSV and BCH combined by a substantial margin, as per data from BitInfoCharts. This means that in a day, the value of BTC’s transactions transcends that of BCH merged with BSV.
BSV’s reputation is often a mare’s nest. On April 15, 2019, Binance crypto exchange announced that it had delisted Bitcoin SV. The announcement read in part:
“At Binance, we periodically review each digital asset we list to ensure that it continues to meet the high level of standard we expect. (…) Based on our reviews, we have decided to delist and cease to trading on all trading pairs for the following coin on 2019/04/22 at 10:00 A.M UTC. Bitcoin SV (BCHBSV)”
This came on the heels of public controversy around BSV’s Craig Wright claims to be Satoshi Nakamoto, the Bitcoin creator. Later on, in May, Craig Wright hit below the belt, making ludicrous allegations about Binance and Tether saying:
“Right now, 30% of Binance money funds women in prostitution; 30% of Binance and Tether funds women in slavery.”
Shortly afterward, large crypto exchange platforms such as Kraken, Blockchain.com, and Shapeshift followed suit, delisting BSV.
While BSV and BTC were intended to be improvements from the Bitcoin Core (BTC) ecosystem, unfortunately, they are still dwarfed by BTC leaving many pondering whether the chain split was really necessary.