Bitcoin SV (BSV) On Death Spiral As Miners Flee The Blockchain After First Reward Halving

The mining of block #630,000 on the Bitcoin Satoshi Vision network, truncated to Bitcoin SV, on April 10th 0048 hours GMT, effectively cut the supply rate of the token by half. A miner mining any block from the halving time will receive 6.25 BSV – a fact that is affecting the overall state of mining on the network as miners escape to the more profitable Bitcoin blockchain.

BSV completes halving, miners in limbo

There has been a general consensus a halving is healthy for asset prices. This because of the assumption that reducing the reward would lead to a sense of scarcity for the asset. That being so, the rewards for mining each block are expected to drop by half as predicted. From 12.5BSV to 6.25BSV.

With the halving, the new daily output of BSV blocks jumps to 900. This means all of the current miners are competing for the same 900 blocks daily. At current prices, this would amount to $200k per day possible.

BSV currently trades at $191, a huge 12% dip from intraday highs shortly before the halving happened. This has raised the fears across the community and miners who have seen their profits cut by more than half –enticing most to switch coins or effectively shut down their miners.

C:\Users\USER\Downloads\coin-dance-bitcoinsvprofitability.png
Source: Coin.Dance

According to Blockchair’s Bitcoin SV explorer, in the past 12 hours since the halving, only 24 blocks have been mined – a huge disparity from at least 72 blocks that should be mined. Currently its 70% more profitable to mine BTC than BSV.

Latest Bitcoin SV Blocks by Mining Pool
Source: Coin.Dance

Bitcoin Cash also halved completed halving on Wednesday

Notably, Bitcoin Cash (BCH) also underwent the halving event on Wednesday triggering a similar reaction from the miners and the market after the 630000 block was mined by Antpool. Their transaction per second rate tumbled from 116tps to 1.1tps. The mining profitability post halving also dipped to over 80% that of Bitcoin and with the mining difficulty not dropping led to a mass exodus of miners who are mainly profit-motivated.

This has spooked the community as consequently, the hash rate has dropped raising security concerns. A significant exodus of miners would leave the network vulnerable to a 51% attack meaning it wouldn’t be impossible for rogue actors to reach the 50% threshold required to fully control the network.

Bitcoin halving is expected to occur in 34 days from this writing May 13th 2020.

Bitcoin SV (BSV) Live Price

1 BSV/USD =$223.9951 change ~ -4.31%

Coin Market Cap

$4.14 Billion

24 Hour Volume

$278.98 Million

24 Hour VWAP

$227

24 Hour Change

$-9.6650

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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