Bitcoin SV (BSV) Miners Stay Loyal despite Higher Bitcoin (BTC) Profitability
Miners are sticking with Bitcoin SV (BSV), one of the assets created from the Bitcoin Cash split, but supporting the network is costing them at a time when mining Bitcoin (BTC) would offer greater rewards.
Bitcoin SV (BSV) miners remain dedicated to the new network in expectation of future development, but in the short term, mining BSV is less profitable compared to what the Bitcoin (BTC) network offers.
The reason is that until recently, a lot of mining power was producing BSV blocks, leading to a higher difficulty. At the same time, the Bitcoin mining difficulty adjusted downward by 15% to account for the lower number of miners.
The profitability of the Bitcoin network increased its advantage, rising to 65.7% as of 11:30 UTC on Thursday, according to CoinDance data. This means that mining BTC carries a much higher probability of block discovery, reward, and transaction fees.
Mining on the Bitcoin Cash blockchain is 4.9% more profitable and not that attractive to BSV miners, who do not want to support the ABC version and seek another path for the asset’s development. Calvin Ayre, the founder of CoinGeek, has taken over as one of the leaders of the BSV version, while Craig Wright has not made much effort to support the network except for rallying supporters for the competitive mining period, which lasted for about 10 days. Still, BSV is slowly building up its community, as demonstrated by the loyalty in times of unprofitable mining.
CoinGeek and SV Pool are the chief pools producing blocks. For now, the BSV asset from the branched chain is yet to establish itself and has a high level of centralization, depending on voluntary miners. In theory, a miner would seek profits and point rigs to the network with higher profitability.
The BSV price stabilized around $90.84, while BCH traded at $117.79. BTC prices recovered slightly to $3,823.33.
Mining for all coins has been disrupted by a combination of the Bitcoin Cash hard fork on November 15 and a general weakening of mining levels. After a peak of 60 EH/s, the Bitcoin network saw a rapid decline to three-month lows of 33 EH/s.