Since the hard fork Bitcoin to Cash, which split the blockchain into two parts: the Bitcoin Cash SV Cash and Bitcoin ABC in November last year, the SV Bitcoin miners suffered huge losses of more than $2.2 million to maintain the network in a safe condition. The main contribution to the Bitcoin mining SV did Calvin Eyre.
Hardfork Bitcoin Cash
Last year Bitcoin went through hard Cash hardfork when the two teams battled for the technical leadership. One was headed by Roger Ver, one of the earliest bitcoin investors, second Craig Wright, who is in the community called “Faketoshi”.
As Bitcoin SV works with consensus proof-of-work, miners should continue mining blocks to protect the network from attack 51%, even if they continue to face losses. If they stopped mining, the value of Bitcoin blockchain SV, would be greatly affected. It is known that the founder of Bitcoin SV Craig Wright, and Calvin Eyre is owned by a very large amount of Bitcoin SV, which helped them to maintain unprofitable mining to protect the network.
Why do miners continue mining Bitcoin SV suffering a huge loss?
According to a recent study Bitmex, a Bitcoin miners SV suffered huge losses that exceed $2.2 million, and this amount is based on the cost of electricity used for production of blocks. If you take into account other production costs, such as overheads, staff costs and depreciation of assets, the total amount will be much more $2.2 million.
On the other hand, miners are competing networks, now called Bitcoin Cash, receive a good profit after the hard fork, which amounted to nearly $42.4 million.
Based on our estimates and current coin prices, since the November 2018 split, Bitcoin miners Cash SV have accumulated gross losses of US$2.2 m (a negative gross profit margin of 12%). This is accounting for mining electricity costs onlyhttps://t.co/U9hbK4peip pic.twitter.com/LE5elvKDge
— BitMEX Research (@BitMEXResearch) April 12, 2019
According to the report CoinDance, CoinGeek company owned by Calvin Ayre, controls more than 28% of all transactions of Bitcoin mining SV. However, still remain vague questions why the other 72% of miners still mined Bitcoin SV sustaining such losses? Why don’t they go to the mining Bitcoin is more profitable Cash or Bitcoin?
The report demonstrates that the mining of Bitcoin does SV not profitable and does not make any sense. Perhaps they have a support that overlaps their losses.
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Tags: Bitcoin Cash Bitcoin mining SV