BSV is not about “decentralization”, but about “competition”

The cryptocurrency industry is full of unknowns in 2020, and there are still many uncertainties in the market, but it is considered a crucial year, with many currencies facing halving. For example, BSV has always been puzzling, with several surges and a market value increase of three places.

Many people believe that BSV has formed a strong center from developers to mining pools such as CoinGeek, and community leaders CSW and Calvin. The multiple surges are also seen as manipulation by relevant stakeholders. In fact, this is not the case. BSV is the result of the joint efforts of all Bitcoin developers, and the BitcoinSV node is a node supported by the Bitcoin Association. More and more mining pools are joining the BSV chain. BSV is not about "decentralization" at all, but about "competition."

"Competition" is a characteristic that needs to be maintained at all times. It is our creed to believe that competition will bring about full market efficiency.

After Satoshi Nakamoto created Bitcoin, he was the only one mining for a long time. So how many people would care about the "strong center"? The freedom to join and exit is the basis of Bitcoin competition. Mining and development on the BSV chain are also competitive. With competition, there is no manipulation and centralization. Anyone can invest more resources and gain greater advantages.

I believe that only with the competition of Bitcoin can we realize the development of blocks from BTC's small blocks to BCH's medium blocks and then to BSV's unlimited large blocks. A market with full competition is a vibrant market. Only by maximizing our own interests in this competition can we make the best decisions and promote more efficient allocation of overall resources.

What impact will the halving have on BSV?

The reduction of block subsidies is a rule that has been set since the founding of BSV, and the impact it should have has also been determined. Miners can get less and less subsidies, and should pay more and more attention to investment in handling fees. For miners, the best way to get higher handling fees is to promote wider applications.

As the BSV UTXO set grows and the network utilization rate reaches saturation, the cost of BSV unit transaction is always rising. However, in the absence of sufficient utilization of existing resources, the unit transaction cost of BSV gradually decreases with the total number of transactions allocated. Therefore, this is a process in which the cost first decreases and then increases.

As the transaction costs of Bitcoin decrease, greater transaction volumes can bring higher profits to miners and promote the overall welfare of society as a whole.

Promoting wider use of the world’s only immutable source of truth ledger can bring higher returns to miners in the long run.

The next step for BSV will be to focus more on expanding the auxiliary functions of miners in helping enterprises use Bitcoin as a ledger. Miners need to provide more and more diverse services on the mining infrastructure to further realize Satoshi Nakamoto's vision as described in the Bitcoin white paper.

In short, for ordinary investors, buy if you are optimistic and sell if you are pessimistic.

The above is what Lin Zheming, founder of Mempool & DotWallet and China ambassador of the Bitcoin Association, said about BSV in the Planet Community.

BSV is officially launched on Spider Mining Pool. Welcome bosses to add Spider WeChat, apply for preferential rates, and start a mining journey with higher returns.

<<: 7,000 addresses, 90% centralized, how far is OKB from being an ecosystem?

>>: Two mining pools control 60% of the Monero network’s computing power. Will mining pool centralization lead to security issues?