Discover the unexpected benefits of digital currency exchanges delisting Bitcoin SV (BSV) and how it’s set to unleash Bitcoin’s true potential as a digital cash system. In this article, we will discuss how this series of events could catalyze real-world adoption, transforming BSV into a functional and accessible currency. Say goodbye to speculation and hello to a thriving BSV economy that empowers users and businesses alike.
In recent months, several exchanges have delisted BSV tokens for various reasons. On the one hand, this is great for BSV because many of these exchanges have since received increased pressure from regulators like the U.S. Securities and Exchange Commission (SEC), and many BSV holders are spared any eventual repercussions of upcoming court cases and investigations into these exchanges.
Nevertheless, some BSV supporters are disappointed and perceive this as a setback for BSV.
In this article, I will argue that delisting BSV from these exchanges is, in fact, beneficial for BSV. Some may think this is just a coping mechanism in response to delistings. However, removing speculation from the equation allows the world to finally explore the true potential of Bitcoin, as unlocked by the BSV blockchain.
Speculation is the primary driver of price fluctuations in digital currencies traded on exchanges. Market participants base their decisions on beliefs about the future value of these digital assets, often leading to dramatic price swings. Exchanges play a crucial role in facilitating digital currency speculation by providing a platform for trading digital assets. Margin trading and leverage options can also amplify the effect of speculation, contributing to extreme price volatility.
Speculators drive digital currency prices to extreme highs when their collective sentiment is optimistic and, conversely, to extreme lows when they perceive the market as risky or uncertain. This behavior creates market cycles characterized by massive price swings.
The delisting of BSV from exchanges has limited speculators’ ability to trade with BSV, significantly reducing the impact of speculation on its price. Short-term speculators, who bought BSV intending to sell at higher prices, have exited the market. These traders often lack interest in or understanding of BSV’s long-term value and potential, basing their decisions solely on anticipated price movements. Termed “weak hands,” they focus on short-term price fluctuations and panic at the first sign of a price decline.
In other words, being delisted from exchanges has curtailed the influence of ‘weak hands’ on BSV speculation.
This market shakeout has resulted in the remaining majority of BSV holders being true believers who continue to support and grow its economy because they understand the project’s fundamentals. With ‘weak hands’ having sold their BSVs and moved on to other speculative trades, these genuine BSV supporters can now concentrate on building and growing an economy that utilizes BSV for more significant purposes than trading and speculating.
The need for an exchange is overstated for those interested in growing the BSV economy. If speculation is not your reason for participating in the BSV economy, then why require a BSV exchange? The primary function of an exchange concerning BSV is to facilitate buying and selling BSVs.
With most exchanges having delisted BSV, can we still buy and sell BSVs? The answer is yes. There are wallets available today that accommodate this1, and market forces will always ensure that there is someone incentivized to provide a service for buying and selling BSVs.
Now, let’s examine why we would want to sell BSVs in the first place. If you’re not holding BSVs for speculative purposes, the likely reason for selling would be to cash out to fiat currency. This would allow you to buy food, clothing, concert tickets, and pay for utilities (water and electricity bills). But what if you could buy all these things with BSV? Is there a genuine need to convert your BSVs back to fiat currency? Why not buy these items with BSVs, particularly since transactions are fast, and you lose almost nothing compared to traditional payment methods, where you lose about 1% to 6% of your money on transaction fees? You can browse the BSV blockchain today, and it is not uncommon to see fees measured in millionths of the transaction amount.
In the BSV economy, transaction fees are no longer measured in percentages but in a percentage of a percent! That is how low the transaction fees are when you use BSV!
In developing countries, traditional payment methods, such as credit or debit cards, are often too expensive or completely inaccessible. The point I’m making is that what we need isn’t exchanges but the ability to purchase the things we need to live, earn, and make a living. Instead of building exchanges, efforts should be focused on enabling people to buy daily necessities using BSV. By removing the blinding effects of greed inherent in market speculation, we can finally start using Bitcoin’s many powers as a digital cash system and as a time-stamping server that can be used to transform and improve almost every aspect of our world.
By shifting the focus from building exchanges in which to gamble and speculate to creating a robust ecosystem where BSV can be used for everyday transactions, we can foster broader adoption and demonstrate the real value of this digital cash. This approach will likely attract more users and businesses to the BSV economy, further solidifying its position as a practical and valuable digital cash system.
Imagine a world where BSV is accepted at your local grocery store, favorite restaurant, or utility provider. The need for converting BSV back to fiat currency would decrease significantly as the BSV economy grows and expands. Moreover, as more people begin to see the advantages of using BSV for everyday transactions, we could expect organic growth in its value, driven by utility and real-world adoption rather than mere speculation.
In conclusion, BSV’s success does not rely on exchanges’ support. On the contrary, the delisting of BSV from exchanges has presented an opportunity for the real Bitcoin—Bitcoin SV (BSV)—to break free from the chains of speculation and refocus on its original purpose—to serve as a digital cash system with a wide range of potential applications. By concentrating on developing a thriving BSV economy, we can unlock the true potential of Bitcoin to create a better, more efficient world for all.
NOTE:
[1.] In a previous article titled, “Mastering Bitcoin wallets: Combining Electrum SV, RockWallet and HandCash for optimal use,” published by CoinGeek on 27 March 2023, I mentioned Rockwallet as an example of where you can buy and sell BSVs.
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