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Bitcoin SV (BSV) doubles value. Market capitalization overtakes Litecoin. Why?

The golden dragon is the heraldic animal of Bitcoin SV. Image by Jim Winstead via flickr.com. License: Creative Commons

The crypto courses are currently celebrating green numbers again. The prices of all currencies rise significantly – but no coin wins as much as Bitcoin SV. Why is it? Just a manipulation of prices? A new prank from Craig Wright? Or is the market anticipating the Genesis fork that will take place in early February, which is probably the most ambitious and daring upgrade that Bitcoin software has ever seen?

Green is such a nice color. Spinach is green, forests are green, and when a traffic light turns green, you can go on. But there is hardly a place where green is as heavenly as on crypto exchanges. Green bars, green numbers as far as the eye can see, for Bitcoin and Ethereum, for Ripple, Dash and Litecoin. But there is one coin that has won more than all others – namely Bitcoin SV (BSV).

On January 3, BSV was on Bitcoin.de for 87 Euro traded. Until 10. January the price rose 105 Euro, which Bitcoin SV only took a little more with the general small rally, which spanned all cryptocurrencies. Then it started: The price rose rapidly over the weekend and decoupled from the other currencies. Today – at this moment – BSV on Bitcoin.de from 181 Euro offered. The course more than doubled in a few days.

The BSV price in the one-month chart at Bitcoin.de

The best way to recognize the decoupling from the rest of the market is to look at the price of BSV in Bitcoin (BTC). The cucumber in December between 0, 011 and 0.0 14 BTC around, rose to 10. January to 0, 015 and shot from there to today 0, 025. Also compared to Bitcoin Cash – which has also significantly increased its value in Bitcoin – BSV won massively: from a little less than 0.5 to today more than 0.7 BCH. In the ranking of cryptocurrencies by market capitalization, BSV initially overtook the Binance Coin (BNB). This was a special pleasure for BSV supporters, as it was the Binance exchange that closed in April 2019 initiated the trend to take BSV off the market because Craig Wright is such a bad person.

The BSV price in Bitcoin.

Bitcoin SV then moved past EOS, then Litecoin, to be in sixth place. In the crypto market capitalization ranking, this gives the novel picture that of the first six coins, three have the word “Bitcoin” in their name and run on a blockchain that started with the Genesis block more than eleven years ago and was created by SHA- 256 mined becomes. Since the Tether dollars (rank 5) are not a cryptocurrency in the strict sense, only the Ethereum and Ripple remain in the top 6 alongside Bitcoin and its forks. For Bitcoin Complete maximalists, this should be gratifying.

So much Bitcoin was rarely in the top 6 of the market capitalization.

Whoever likes it when David defeats Goliath and when the underdog wins the gold medal will have a secret pleasure in the course explosion. Last year, some of the largest exchanges – Binance, Kraken, Shapeshift – took BSV off the market because they didn't like some of its key agents, while other big exchanges like Coinbase and Bitstamp didn't even think of listing BSV.

This is why we delisted it from ShapeShift

– Erik Voorhees (@ErikVoorhees) January 13, 2020

Most hardware wallets such as Ledger and Trezor also generally refuse to integrate BSV. Ledger, for example, works with more than 20 cryptocurrencies and hundreds of ERC tokens, among which there will probably be many very questionable ICO tokens. In the lists of assets from both Ledger and Trezor you will find more than 10 Bitcoin variants, including pearls such as Bitcoin Red with a full market capitalization 39. 000 dollars and a price that goes from the top 99, 8 percent has lost. But, of course, no Bitcoin SV. Because the wallets have to protect their customers. That is a bit amusing.

Major magazines like Coindesk or TheBlock do not principally report on BSV (and if so, then Craig-Wright scandals), and a mass of crypto-influencers tell social media day in day out that BSV is a scam because, well, Craig Wright – you know.

The endless supply of $ BSV plebs is simply astonishing.

And it's enabled by every single institution, conference and influencer who gives it legitimacy by featuring these people and giving them a platform. Sad. pic.twitter.com/KT4c5XKQNZ

– Mike Dudas (@mdudas) January 13, 2020

So it is a bit of a joy when Bitcoin SV, contrary to all attempts by central points in the ecosystem, does not come down, but thrives. A top 6 coin that is widely ignored and vilified, and a Streisand effect with full force. Who doesn't like that?

But what is behind this explosion?

Craig Wright's Tulip Trust Saga

As always, price movements can hardly be explained causally. It could be this reason, or it could be depending on the correlation to other events that you discover. Or something you don't even know about. There could also be no real reason: a whim of a rich person, a chirp in the mass psychology of the markets. Nevertheless, it is interesting to speculate about the causes.

A theory that has been expressed is related to, you guessed it, Craig Wright. Craig had announced in court that he would receive the keys to Satoshi's Bitcoin wallets through a “bonded courier” in early January. At least maybe. The story is widely questioned – it sounds very absurd in detail – which is why the social media hardly started the new year when the mockery about the self-proclaimed Bitcoin inventor was spread.

After Craig Wright was severely beaten in court – observers spoke of a crucial early judgment – a senior judge withdrew this judgment (if it was one) and allowed Craig until early February to give the requested addresses present. He has – earlier than expected – submitted a document that contains an attachment from 428 contains pages, which is why it is speculated that it contains all the addresses belonging to Satoshi. In a private chat, Craig announced that the “bonded courier” had arrived.

It can of course be that this train had an impact on the price. Finally, Craig has announced – rather loosely and contradictory – that as soon as he gets the coins, he will sell BTC and BCH and invest the proceeds in BSV and the BSV ecosystem. And anyway – if Craig is actually Satoshi (I have my doubts), this gives Bitcoin SV a huge boost in reputation and legitimation. How embarrassing would it be for the major stock exchanges and magazines to boycott the father of the ecosystem's coin?

But I don't particularly like this theory. It expresses the expectation that the great Craig will finally fix it. There is hope for authority behind her, and if Craig acts as you know him, there is little reason to trust that this is more than a tactic to lengthen the trial. The price increase of BSV in the last few days would therefore be on shaky legs and probably collapse again when normality returns and Craig does not deliver.

Let there be Genesis

However, there can be several reasons. For example, the Genesis upgrade. On February 4, Bitcoin SV will initiate the final hard fork to complete Satoshi's protocol restoration. The changes are huge, extremely ambitious – and certainly not harmless.

The blocksize limit is completely removed by default. Miners can continue to set their own limit – and should do so – but there will be no limit to the capacity of the blocks in the log. In addition, numerous other limits will be abolished: for the amount of memory that the signing takes, for the number of signature operations per megabyte and transaction, for the number of Op_Codes per script, the size and the number of elements in scripts. The size of a single transaction still has a limit; however, this increases to 1 gigabyte. Non-standard transactions will be allowed, which will make it possible to compose much more complex transactions than before.

Who can not categorize all of this correctly: The solution to all these limits is the realization of the economic idea of ​​big blockers – that there are no limits in the protocol, but that the miners make the right decisions in a free market. At the same time, she's the devil of small blockers, sheer madness and suicide, if you believe what has become the little 1 × 1 of blockchain technologists over the past few years: Bitcoin cannot scale onchain, all the limits – on Block, transaction and script sizes – are necessary because the miners would otherwise destroy the cryptocurrency.

The Genesis upgrade includes other changes that are hardly less spectacular. The Op_Codes OP_CHECKLOCKTIMEVERIFY and OP_CHECKSEQUENCEVERIFY introduced by Bitcoin Core will be abolished for new transactions and replaced by the original nLockTime and nSequence; as it will not be allowed to send coins via P2SH to addresses that start with a 3. The latter change in particular interrupts the methods used by Bitcoin and Bitcoin Cash to generate multisig addresses, which, for example, led to the wallet BitGo – which works in the backend of many exchanges – being forced to stop supporting Bitcoin SV.

There are also some technical upgrades that are expected to help make the nodes ready for the new flood of data: For example, the developers are introducing parallel block validation, a more effective block transfer method, and a timeout for not validating standard transactions.

Should Bitcoin SV survive February – should the cryptocurrency survive the variety of attacks prevented by the limits so far – the cryptocurrency should have made the point that Bitcoin Cash never could or was allowed to do: to prove that the Onchain scaling works so that Bitcoin regulates itself and does not need developer bodies that determine the limits within which the miners operate. However, should Bitcoin SV die – or suffer significant, irreparable damage – it will be shown that limits are actually necessary. It's dangerous, daring, and maybe even insane – but Bitcoin SV goes all out and does what Big Blockers have always wanted. It creates facts. This at least gives the cryptocurrency relevance.

Conferences and Apps

February will also bring a lot of entertainment for Bitcoin SV. There are some big and top-class events. The CoinGeek conference takes place in London, where the who's who of Bitcoin SV meets every six months on another continent. Among the speakers known so far are the usual suspects – Craig Wright, Jimmy Nguyen, Alex Apagut from Handcash, Ryan X. Charles from MoneyButton, Daniel Conolly and Steve Shadders from nChain – but surprisingly also a person like Thomas Moser from the Swiss National Bank.

The CoinGeek conference shows that Bitcoin SV has created a stable and network-friendly ecosystem of companies that want to work with the BSV blockchain in the long term, and that this ecosystem can also attract new, prominent faces. Having such a semi-annual event is definitely something that helps a cryptocurrency.

In addition to CoinGeek, the third Hello Metanet workshop will also take place in Berlin in February. This semi-annual mini-conference – which fluctuates somewhere between the hackathon and the barcamp – is attracting more and more international developers and is primarily devoted to the technology by which data is uploaded and used on Bitcoin SV's “metanet”. Since I was one of the initiators of the first Hello Metanet workshop, I'm of course not at ease here.

Here, in BSV, the opposite is occurring. A perfectly useful money with aspirations of global domination has been championed by someone I have very little reason to believe is who he says he is.

– Jason Smith (@iwearahoodie) January 14, 2020

In addition, numerous Bitcoin SV developers meet at CambrianSV, a workshop hosted by Jack Liu, a former high-ranking employee of the major Chinese exchange OkCoin, where Jack Liu pays around two dozen developers the trip to Portugal they work there together on their projects and exchange ideas.

Such conferences do not have an impact on the price per se. But they demonstrate externally that Bitcoin SV is an extremely lively ecosystem – while internally promoting cooperation, networking and commitment from developers and the community.

There is more to report. For example, that there are hundreds of BSV apps that are probably developed by people who – for whatever reason – like BSV. Or that BSV has been making more and more transactions than Bitcoin (BTC) and in some cases Ethereum for several months. All of this may indicate that the markets are slowly realizing that BSV is more than Craig Wright and not the empty fraud as it is presented in unison by the central bodies in the ecosystem.

Of course, it could also be very different …