Coinbase, the largest digital asset trading platform in the United States, has announced that it will end support for the Bitcoin hard fork, Bitcoin SV (BSV). The exchange had delisted the digital asset back in 2021 and added that it will cease to support the network by January 9, 2024.
Coinbase Delists BSV
In a letter emailed to its customers, the exchange stated that all Coinbase customers who fail to withdraw their BSV coins until the deadline will have their holdings converted into another digital asset. Coinbase stated:
“Upon liquidation, your BSV will be converted to the then-equivalent market value of another supported digital asset and credited back to your account, minus any transaction costs. Please note that after accounting for transaction costs and subject to market fluctuations, you may not receive any compensation when the remaining BSV in your account is liquidated.”
It is crucial to note that Coinbase ceased trading BSV after a 51% attack that was initiated against the network in August 2021. In such an attack, a single entity or a group of entities gains control of more than 50% of the total computational power (hashrate) of a blockchain network. This majority control allows them to manipulate the blockchain’s transaction history and potentially disrupt the normal functioning of the network.
Troubled BSV: 51% Attacks, Growing Blockchain Size
This was the fifth attack on Bitcoin SV since the end of June 2021, resulting in three versions of the chain’s simultaneous mining. Notably, BSV coin is currently available for trading on digital asset trading platforms OKX or KuCoin, but with no support for the US dollar.
Another factor that could have played into this decision, is the fact that BSV blockchain size currently stands at a whopping 9.3 TB according to BitInfoCharts, which seriously question its decentralization. Not many individuals have access to storages this big to store the entire blockchain, undermining its decentralization.
In a reddit post, submitted about a year ago, a user stated that “Bitcoin SV only has a total of 19 reachable nodes, only 9-10 of which are still in sync with the latest chain tip”. BitcoinNews cannot confirm the accuracy and validity of this claim.
Another thing to note, is that according to WhatsOnChain, the mining pool Taal.com currently controls more than 53% of total network hashrate.
What is BSV?
Bitcoin SV emerged as a result of a contentious hard fork from Bitcoin Cash (BCH) in November 2018. It was created by Craig Wright, an Australian computer scientist who has claimed to be the original creator of Bitcoin, who used the pseudonym “Satoshi Nakamoto.”
According to Wright, the “SV” in Bitcoin SV stands for “Satoshi’s Vision,” indicating that it was intended to adhere to what Wright believed were the original principles and vision of Bitcoin as outlined in Satoshi Nakamoto’s whitepaper.
On the other hand, Changpeng Zhao, the CEO of the world’s largest digital asset trading platform, Binance, called Wright a “fraud” in 2019. Notably, his firm delisted the BSV coin on April 22, 2019. Binance stated at the time:
“We periodically review each digital asset we list to ensure that it continues to meet the high standard we expect.”
These delisting actions by exchanges reflect the ever-evolving landscape of digital assets and the importance of security and compliance to survive in the space.
