Bitcoin was the first cryptocurrency - but it inspired the creation of many more. Bitcoin SV (BSV) is just one of the many cryptocurrencies that have come into being since Bitcoin launched back in 2009.
The Zumo wallet can now be used to hold and receive BSV, which is the third cryptocurrency to be available on our platform.
If you’re thinking of using Zumo to invest in BSV, it’s worth understanding more about its history and benefits.
Here’s what you need to know about BSV.
What is Bitcoin SV?
BSV (Bitcoin Satoshi Vision) is a hard fork of Bitcoin Cash, which is itself a hard fork of Bitcoin. It is an extension of the same original blockchain, with some amendments that have targeted the dual benefits of cheaper transaction fees and increased transaction capacity.
The name comes from its supporters’ belief that BSV aligns with the original vision of Satoshi Nakamoto, who first published the white paper explaining Bitcoin.
But before we jump into the world of BSV, we’d like to make a quick disclaimer. The following information is not an endorsement of Bitcoin SV, but an explanation.
Zumo is blockchain agnostic. It’s up to you to decide which cryptocurrency is worth buying and we’d advise you to think carefully when investing.
What Are The Advantages of Bitcoin SV?
BSV advocates believe the new coin will help to realise the “maximum potential” of the original cryptocurrency. It’s supported by Bitcoin Association, a non-profit group based in Switzerland.
“The Association supports Bitcoin SV as the original Bitcoin, with a stable protocol and massive scaling roadmap to become the world’s new money and global blockchain for enterprise,” the group wrote.
Understanding BSV Transactions
To explain one aspect of BSV, let’s first turn to Satoshi Nakamoto. In 2009, he wrote: “The existing Visa credit card network processes about 15 million internet purchases per day worldwide.”
In January 2021, the Bitcoin SV Scaling Test Network hit 9,000 transactions per second and is expected to demonstrate a capacity of 50,000 transactions per second by the end of 2021, leading supporters to suggest it can power a fast, efficient payment and transaction network.
Could this be the cryptocurrency that achieves worldwide adoption and powers a new mainstream global financial system? We don’t know yet - but BSV advocates are certainly excited about its potential.
It’s hoped that improving speed and efficiency will push crypto towards mainstream adoption. But BSV has other capabilities which make it attractive:
- Bitcoin SV allows for large blocks, which means the blockchain can support big data and other applications demanded by global businesses.
- A BSV block has no size limit. In 2021, the Bitcoin SV network set a world record by processing a huge 638MB block.
- The BSV network can therefore store and process large amounts of data, pushing it beyond being just a payment system and opening it up to a wide variety of use cases.
Bitcoin SV is intended to “massively scale” and address the Bitcoin scalability problem - an issue caused by the limited capacity of the Bitcoin network to handle large amounts of data and transactions.
With its larger blocks, BSV is intended to bypass this problem and remove bottlenecks to help its network scale.
With these bigger blocks and improved transaction speed, it’s hoped BSV will grow into a global payments, transfer and data network.
Bitcoin Association’s Ella Qiang believes that BSV has the scaling capacity to satisfy “serious business” needs.
BSV’s goal is to reach 50,000 transactions per second in 2021 and up to 4 million per second within the next five years.
What is a cryptocurrency fork?
Bitcoin SV was formed as the result of a hard fork from Bitcoin Cash (BCH) on November 15th, 2018.
All cryptocurrencies rely on the blockchain, which is an open ledger of transactions stretching back to the “genesis block”, which is the first block in a chain.
A fork is a change to the rules governing a certain blockchain. They occur at a chosen block from the existing chain and allow the creation of a different cryptocurrency that operates differently from its predecessor.
Forks take place when there is a need to add new features to the blockchain and can also be enacted to address bugs or repair damage caused by hacking.
Bitcoin SV was formed during a hard fork of Bitcoin Cash, which itself was created by a fork in 2017.
How to store BSV securely
You can now hold your BSV with Zumo’s easy-to-use wallet, with buy, sell and exchange functionality coming soon.
Once you’ve activated your Zumo account and linked it to your UK bank account, you should have access to four wallets: Bitcoin, BSV, Ether and GBP (British pounds).
You can now store, send and receive BSV in the Zumo app, with additional features coming soon!