Bitcoin SV (BSV) recently pumped 30% against BTC. In this video, Bitcoin developer and influencer Joshua Henslee explores why this might have happened and its implications. Do people realize the utility of BSV amidst the chaos on the BTC chain? Joshua looks into it in this video.
What’s behind the BSV price pump?
“Normally, I wouldn’t do a video about this sort of small move if every other coin was pumping, but the reality is, this was a decoupled pump,” Henslee says, kicking this video off. He notes that BCH is also up 10%.
The block size debate is raging again as the BTC camp debates what to do about Ordinals and BRC-20 tokens congesting the network. As Henslee said in a previous video, this is a permanent change; miners are making too much money to go back, and BTC Core developers are talking about implementing a bug fix to stop it.
Will BSV still go to $5, as the meme suggests? It might, Henslee says, but why would it? Clearly, the market has seen something of value in the big block Bitcoin chains for the price to pump the way they did.
Henslee encourages viewers to watch the market cap of BRC-20 tokens. It’s climbing higher, proving the demand for such tokens. Until 2023, barely anyone knew that Bitcoin could have on-chain assets or data due to all the propaganda, social engineering, etc.
Due to this newfound awareness of what is possible, Henslee believes altcoins, layer two scaling solutions, and other solutions that arose due to the deliberate limitation of Bitcoin are finished. The only reason they exist is because nobody believed this was possible on BTC. Now that the cat is out of the bag, there’s no going back. Best of all, this all happened organically without VC investment and influence, and it happened with high fees and a 1MB block size.
Henslee once again expresses his long-stated view that organic growth and apps people want are the way to fuel Bitcoin adoption. He says things are changing so fast that he’s sleeping less. He expects things to pick up pace as exchanges like Coinbase (NASDAQ: COIN) and Binance will likely list BRC-20s like $Ordi to cash in on the latest craze. As it picks up pace, the on-chain price will be the source of truth—centralized exchange prices are derivatives, he says.
Giving an analogy for what’s happening, Henslee says the pendulum is swinging back. It’s been pushed in one direction for so long that it’s bound to swing violently in the other direction.
Is all of this going to cause another BTC chain split? Henslee doesn’t know, but he thinks there will probably be two chains. This will lead to many questions about which chain is right, whose Ordinals are legit, and many other queries. He laughs at the notion that layer 2 solutions will solve this or that people will lock their $Ordi in a Lightning channel.
Summary of this Joshua Henslee video
- BSV recently pumped 30% against BTC in an uncoupled market move. BCH was also up 10%.
- As Ordinals and BRC-20 tokens become more popular, the BTC mempool is backlogged, and the blockchain can’t handle the transaction volume.
- However, miners are making money hand over fist in all of this, and they’ll be keen to keep it that way. Henslee believes this is a permanent change – there’s no going back.
- Now that people are aware non-fungible tokens (NFTs) and tokens can be done on Bitcoin, Henslee thinks other blockchains like Ethereum and Solana are done. The only reason they exist is that people were led to believe Bitcoin could not do these things.
The pendulum is swinging back, and it will likely lead to another BTC chain split. There’s no way out of this, and Core developers are already plotting to shut down what they view as spam. The block size debate is back.
Watch: Joshua Henslee on every significant metric is positive for BSV
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