BSV and BCH Miners Missed Out on Millions, Research Shows

BSV and BCH Miners Missed Out on Millions, Research Shows

In a new piece of research yesterday released by Binance Research, it was revealed that those who mined BSV and BCH could have earned millions if they had opted to mine BTC instead.

The research that was conducted took a deep dive look into the mechanics and profitabilities of bitcoin-centric mining via comparison of the world-leading cryptocurrency, Bitcoin and two of its forks Bitcoin Cash (BCH) and Bitcoin SV (BSV).

The findings of this research have highlighted some interesting aspects of mining results, which could lead to many BCH and BSV miners kicking themselves in hindsight. This is because one of the key takeaways is that had they opted to mine BTC, as opposed to its to two forks, then they would have made substantially more. With the research noting that the potential for more earning being in the millions.

12.5 Million Missed By Mining BSV

To be more specific, in the report that is titled, Bitcoin Mining Allocation, it notes that those who had mined BSV missed out on around $12.5 million in potential collections by opting to mine it during a 13-month period since its launch instead of staying true to BTC.

While those who mined BCH during that same 13-month period missed out on a lesser. They still missed out on a very substantial sum of $7.7 million. The significant size of these missed earnings will have many miners out there questioning their thought process during that period.

Alongside these findings, the report also commented on comparisons between mechanics and profitabilities between BTC, BCH, and BSV. It described the mining of BCH as as “often more Economically Rational”. While BSV, the later coming fork of Bitcoin that happened in November 2018, saw a significant opportunity cost for most of 2019. Noting that this period saw it make up 15% of its total mining revenue since its launch.

Profitability Likely to Converge Over Time  

The report also found that at one point, in March 2018, 9 months after BCH split from Bitcoin and during the space between the bitcoin boom and crypto winter, the mining profitability of the two tokens was close to equal.

The profitability for mining BSV also saw a similar trend in that 9 months after its hard fork from BCH blockchain in August of this year. In that, the mining profitability of “BSV started to converge” with those of BTC and BCH. Interestingly, the underlying mining mechanics for the three bitcoin-based crypto assets are the samewith them all relying on the same hash function.

As a result of this, Binance Research thinks based on the mining reward-to-difficulty ratio will mean that eventually, the respective profitability’s will eventually converge, regardless of the price points they possess individually. With the report stating the “potential reasons for seemingly suboptimal mining allocations include varying liquidity conditions, a partial lack of mature derivatives products, additional rewards from merged mining, and differences in the structure of mining pools”

Although they also noted that this does not account for why the BSV mining profitability remains lower than its counterparts at the moment in time. With the report speculating that this could be a result of other factors at play, including non-economical reasons.

It also drew attention to the fact neither of the bitcoin forks have been halved in the past as an element that may be relevant to profitability. Stating that “as halving events have never occurred on neither Bitcoin Cash nor Bitcoin SV, it remains to be seen how such an event might impact their respective mining profitability and to what extent it will test the sustainability of their underlying economic incentive reward schemes.”

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News

Bitcoin,CoinMarketCap,Ethereum

Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021
Casino,Ethereum,Gambling

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021
Bitcoin,Coinbase,CoinMarketCap

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021
Cybercrime,Scam,Trezor

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021
Bitcoin,eToro,Trading

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021
Bitcoin,Investment,Trading

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021
Sponsored

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020