“If you are into BSV, you should be the most bullish right now, because we’ve never seen this type of volume,” says Joshua Henslee in his latest video looking at Bitcoin’s fundamentals. He looks at the massive gap between pessimistic sentiment in social media groups and the huge potential for longer-term growth, which is far more interesting to look at.
Sustained transaction volumes of over 3 million per day show amazing growth in the network. Henslee says that’s “not a lot, but it is significant relatively to the past.” He’s also regularly seeing blocks where the processing fees are higher than one BSV in addition to the usual miner subsidy.
CryptoFights and Fyx Gaming!
— CryptoFights⚡ (@CryptoFights) January 13, 2022
Henslee notes that the increase in demand, applications, and transactions overall hasn’t had a positive impact on the BSV unit price—and agrees some see this as a problem, although he tries to stay out of that discussion.
Traders look at price charts only and don’t worry about fundamentals, “swapping NFTS and crapcoins, making a quick buck and hopping out to the next thing,” Henslee pointed out.
So if fundamentals aren’t changing the price, can BSV make the leap between being a heavily-used blockchain and one with increasing value on its native asset?
Henslee points to an article by “Zemes Gaoson” on how miners could leave other chains for BSV. Gaoson was a frequent commentator on Bitcoin technical topics who recently disappeared from social media.
What’s important to look at is the arbitrage opportunity for transaction processors (miners) on the BSV blockchain if the number of transactions makes it more profitable to mine on BSV than its SHA-256 relatives, namely BTC and BCH.
“That’s the heart of the argument for ‘why Bitcoin?'” he says.
He draws attention to new games like PowChess, which he calls “a really slick app” and one that could have mass appeal if enough people find out about it. There’s no shortage of people playing chess online, and at the moment, they’re all doing it just for the joy of playing.
Applications that pay their users for playing games and creating content are the ones that will achieve virality. People already do these activities for free on other services, and at some stage, the opportunity to make money will lure them over to BSV services.
Henslee says he can’t see the future and isn’t telling anyone to buy BSV, but he believes the unit price “is near the bottom” right now. That itself can keep the price suppressed because “people rarely buy the bottom.” However, all it would take to turn things around is for someone who does understand the fundamentals to notice the price is way below where it should be (given the activity on the network and number of users) and start a new trend.
The masses are more likely to rush to follow crowds than start momentum themselves. It’s the reason you can walk past half a dozen empty restaurants only to see people lining up for a full one—even though there’s no difference in the quality of the product offered.
There’s a lot of “telling, not showing” in BSV talk as well. That’s people endlessly pointing out what BSV can do, but without concrete examples. However, the example of an application doing plenty of business and making money for a large group of satisfied users is the one that’ll cause momentum-creating buzz. It’s more likely to be GopniksDAO, Jamify, or PowChess that create new price momentum in BSV, not explanations and arguments on Twitter.
Watch: CoinGeek New York panel, Online Games: Next Level on the BSV Blockchain
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