Understanding Why Bitcoin SV Miners Aren't Chasing Profit

The Economic Puzzle of BSV Miners

In a world driven by profit, it seems Bitcoin SV (BSV) miners have decided to channel their inner zen and mine for a cause greater than a shiny coin. A recent Binance Research report revealed that these miners are apparently not motivated by financial gain, but rather by a deep-seated commitment to their beloved blockchain. Who knew mining could be a spiritual journey?

A Deep Dive into Mining Profitability

The researchers at Binance crunched the numbers, comparing BSV’s mining profitability with Bitcoin (BTC) and Bitcoin Cash (BCH). Their findings from November 2018 to August 2019 show that BSV miners were on the losing side of the profitability game. Specifically, the report stated,

“The Bitcoin SV reward-to-difficulty pattern implies that a significant portion of its hashpower might not have emanated from economically-driven actors until August 2019.”

In other words, it’s like chasing after a mirage in the desert—lots of effort with very little to show for it.

Monster Losses on the Horizon

Now, let’s talk dollars and cents. BSV miners collectively lost between $12 million and $13 million during the period analyzed. This begs the question: if they aren’t chasing profits, then what on earth are they doing? According to the report, the miners likely owned substantial amounts of BSV coins, which provided an incentive for them to continue securing the network, even at a loss. The report notes,

“These vested interests would incentivize them to secure the BSV network to preserve a significant portion of their capital.”

In other words, it’s all about the long game, folks!

The BCH Dilemma

And BSV isn’t alone in its self-sacrificial mining journey. Bitcoin Cash miners were also found to have taken a wrong turn at the fork, collectively suffering an opportunity cost estimated at about $7.7 million. It’s like a classic episode of Survivor, only these players seem intent on voting themselves off the island!

Lessons Learned from Misdirected Hashrate

This isn’t the first time we’ve seen miners going off-course. Previously, BCH miners wasted resources by mining 14 blocks on the wrong chain right after a hard fork! Hello, can we get a GPS for these miners? The mishap serves as a reminder that even in the world of cryptocurrencies, the road to economic ruin can be paved with good intentions—or, in this case, misplaced hashrate.