Bitcoin SV Miners Accumulated Gross Losses of $2.2 Million Since November

Miners on the Bitcoin Satoshi’s vision (BSV) blockchain have reportedly not been able to make a profit since the cryptocurrency was created, as the coin’s low price might’ve not been enough to help them pay for energy.

According to a tweet published by BitMEX research, miners on the BSV chain experienced a negative gross margin of 12% since the cryptocurrency was created through a hard fork on the Bitcoin Cash (BCH) network in November of last year.

BitMEX Research shows that since the split, the BCH (BCHABC) miners have mined 265,388 coins, while those on the BSV side have mined 263,550 BSV coins. While BCH tokens are currently trading at $280, BSV tokens are trading at $70 – a significant difference.

Doing the math showed BCH miners have made $74.3 million worth of cryptocurrency since the hard fork, while BSV miners have made $18.4 million in the same time period. The cryptocurrency exchange’s research division took into account lower bound mining electricity costs, of 31.9 million for BCH miners, and of 20.7 million for BSV miners.

It found that miners on BSV chain lost $2.2 million, while those who preferred to mine Bitcoin Cash made $2.4 million in the same period. BSV is notably supported by self-proclaimed Satoshi Nakamoto Craig Wright, who’s recently threatened legal action against some crypto Twitter users who claimed he was a “fraud.”

This saw the CEO of major cryptocurrency exchange Binance, Changpeng Zhao, warn that if he doesn’t change his conduct the BSV token will be delisted from the exchange. Such a move could significantly affect the cryptocurrency’s price.

It’s also worth pointing out that Poloniex, a cryptocurrency exchange acquired by Circle last year, has recently added Bitcoin Cash and Bitcoin SV margin trading pairs for non-US customers to its platform.

The Coronavirus Outbreak Is Delaying China’s Digital Currency Research

China’s research into the launch of its own digital currency has reportedly been delayed over the coronavirus outbreak, which according to recent data has infected over 81,000 people worldwide and claimed the lives of 2,765.

According to the Global Times, an anonymous source close to the matter has detailed that the outbreak forced several government institutions to slow down. The source was quoted as saying:

The coronavirus outbreak has led to postponed work resumption in government institutions, including the People's Bank of China (PBC). Policymakers and research staff involved in the DCEP project are no exception, which weighs on the development process.

Commenting on the case the CEO of a Shenzhen-based blockchain firm involved in the launch of the digital currency, Shentu Qingchun, noted the People’s Bank of China, the country’s central bank, was expected to make an important announcement during Q1 of this year.

Qingchun added, however, there’s only a month left and as such “chances that the announcement could be made on time are slim.” The currency, called Digital Currency Electronic Payment (DCEP), is still being developed and officials are discussing scenarios in which it could circulate as cash.

The source noted that the digital currency could still be launched on time as the central bank has “abundant talent” that can help it deal with the delay in research. Per Shentu, since the DCEP is a digital currency it would help reduce hand-to-hand contact among individuals, which has helped the coronavirus outbreak spread. As such, policymakers could give the DCEP more attention.

The Global Times’ source added that research into the DCEP has “achieved fruitful results” and that it’s close to an end. The central bank’s research institute, per the report, has applied for 65 patents involving digital currencies, while its institute of printing science and technology has applied for 22.

Featured image by Floriane Vita on Unsplash.