In the last two days there have been two critical posts published against the Bitcoin Satoshi’s Vision network (BSV). On December 17, Binance Research published an allocation mining report that analyzed the mining activities of BTC, BCH, and BSV and the research detailed that BSV miners are mining irrationally to protect their investment. The following day, the firm Bitgo published a report that disclosed it will be depreciating BSV because of the upcoming hard fork that aims to remove Pay-to-Script-Hash (P2SH) outputs.
Bitcoin SV Mining Criticized by Binance Research
The Bitcoin Satoshi’s Vision network (BSV) is being criticized for a couple of reasons this week and the topics are trending within the cryptosphere’s chatter. For instance, on Tuesday the research team for the crypto exchange Binance published a report that disclosed the mining activities of BTC, BCH, and BSV in 2019. The report highlighted that cryptocurrency mining has become far more competitive and revealed that BSV miners are mining at an opportunity cost. Usually, an opportunity cost means that a cost is incurred for irrational reasons, rather than enjoying the profits associated with the best alternative choice. When comparing the BTC, BCH, and BSV networks, Binance researchers underlined that “cryptocurrency mining for BCH was often more economically rational.” However, when it comes to BSV mining in 2019 it “involved a significant opportunity cost for most of 2019, which is estimated at more than 15% of its total mining revenue for its entire history, since the November 2018’s fork.”
All three blockchains use the same hashing function and throughout the year, BSV miners suffered the worst according to the Binance report. “In less than a year, an estimated…