Despite the BSV blockchain handling more daily transactions than most other major blockchains combined, there’s no denying that the BSV token price performance has been underwhelming. In his recent video, BSV developer Joshua Henslee gives his thoughts on why the BSV token price is low despite the organic demand.
The main reasons why BSV’s token price is so low
Henslee dives right in and lists the reasons why he believes BSV is still so low compared to other purely speculative tokens.
Lack of liquidity
In a previous video, Henslee covered how short sellers effectively shorted BSV from just under $500 to $170. Briefly, the block reorg attacks occurred after this, and BSV was delisted from many exchanges.
As a result, the liquidity and volume aren’t what they used to be. This scares off potential BSV token buyers because there are fewer ways to exit into fiat currencies.
There’s no demand
To most people in the digital currency space, such as traders and speculators, BSV has a negative reputation and is perceived as a scam coin. While Henslee notes that this signals ignorance about the true purpose of Bitcoin, that won’t do anything for the price in the short term.
Henslee believes this will improve in the long run, but it might take a while. He notes that the propaganda is intense, and most people, even in the mainstream, accept the BTC narrative without question. Henslee sees some subtle change here; people are waking up to Bitcoin’s true purpose, but he’s not optimistic that this will reach a tipping point anytime soon.
Part of the demand problem, Henslee says, is the lack of killer apps to attract new users. Again, this is changing slowly, but it could take some time.
Uncertainty about Dr. Craig Wright
Henslee notes that much of the previous price action regarding BSV has been linked to news about Dr. Craig Wright. He made a video explaining this, which you can watch here.
However, he also notes that nothing really happened after Dr. Wright defeated Ira Kleiman in court and that the market shrugged off any gains it made in the aftermath of the case. Henslee puts this down to lack of liquidity once again.
What explains Dr. Wright’s repeated “big talk” promises that amount to very little? Henslee puts it down to misdirection. Being that he believes Dr. Wright is who he claims to be, he says it doesn’t make sense for him to do this for any other reason.
“I don’t think he’s ever going to do anything publicly, at least anytime soon,” Henslee says.
Uncertainty about digital currencies as a whole
Henslee notes the sharp change in tone towards digital currencies in the mainstream media. In an environment of turmoil involving war, inflation, higher oil prices, and more, the mood has changed, and the momentum has been sucked out of the market.
Noting that it was pitched as a decoupled asset and has proved to be anything but, Henslee laughs and says that it only proves that so far in its 14-year existence, ‘crypto’ hasn’t done anything significant at all.
Adding to this negative mood about BTC and other coins are events such as the Canadian trucker protest. During that, the world learned that governments have much more power over BTC than they were led to believe and that it can be seized. None of this is helping the prices of any digital currencies, BSV included.
“As time goes on, the veil will be lifted…the illusion will be shattered,” Henslee remarks.
Most of the digital currency space is a Ponzi scheme
Henslee notes that the public perception of digital currencies is changing. People are getting wise to the fact that most of these ‘investments’ operate as Ponzi schemes.
BSV gets caught up with this, and even within the digital currency space, it has a worse reputation than most other coins.
Henslee believes a day of reckoning is coming and that it will happen after a major crash leaves many so-called investors penniless. He thinks that there could be an awakening when this happens whereby people look into the “one that works.” He believes that in 5-15 years, we’ll look back and laugh at the current state of this market.
What can change the direction of BSV?
Henslee shows how things can change for the BSV token price in the second half of the video. He lists several things that could quickly change its direction:
1. A viral app shows the world what Bitcoin is
An app that turns out to be a huge hit could have a significant positive impact on BSV. One that demonstrates the power of micropayments and allows people to get “that dopamine hit” while receiving BSV could help things take off.
A successful enough app could wipe away all of the negative histories and make people get what Bitcoin was supposed to be about.
2. Dr. Wright definitively proves that he is Satoshi Nakamoto
Henslee again notes that rumors and events surrounding Dr. Wright have historically had the power to move BSV’s token price sharply higher. He dismisses the idea that Dr. Wright will do anything to conclusively prove he is Satoshi Nakamoto anytime soon.
Henslee thinks that Dr. Wright will only make his move when the insanity of the current speculative market has passed, and the utility of Bitcoin is widely understood.
3. A potential big whale or investor buying BSV
A large investor or institution taking a gamble could fix BSV’s liquidity problem. Henslee notes that as BSV hits rock bottom, the risk-reward calculation becomes more attractive to potential investors.
If a big enough investor ignored the noise and did enough research, they could see an opportunity to buy an undervalued utility token. However, very few can see clearly in the haze of a highly lucrative bubble.
Which of these three is most likely? Henslee says that while Haste Arcade could be the killer app we’ve all been waiting for, he thinks it’s more likely that someone looks away from the crowd and takes a big gamble on BSV. Despite the current negativity, he remains highly optimistic about the future.
Watch: CoinGeek New York panel, Bitcoin & Blockchain – Can Real Value Come from Real Utility?
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