Home » Business » BTC is down more than BSV year-to-date
Year to date, BTC has been a worse investment than BSV. If you bought BTC on January 1, 2022, you would be down roughly 60% on your initial investment. If you bought BSV that same day, you would be down approximately 50% on your initial investment.
Sometimes a bear market isn’t always about making money, but rather managing risk and losing less money.
Live by the leverage, die by the leverage
If your coin or token thrives because of the amount of leverage and printed money it has to keep it afloat, it will suffer when margin calls and forced liquidations begin to take place, and the money printer gets shut off.
We have seen these events unfold in and around BTC in the last few months. Projects with high-risk economic models like Terra Luna were forced to liquidate BTC in an attempt to keep their stablecoin pegged to the dollar, popular hedge fund Three Arrows Capital (3AC) is on the road to insolvency, and many of the digital currency platforms that it worked with and through have force liquidated 3AC’s BTC positions to salvage what is left of the firms capital, and Tether is no longer printing USDT at the rate it has in the past. These events put a significant amount of sell pressure on BTC, which has caused BTC to plummet by 32% in the last 30 days.
BTC’s primary use case is speculation. So when the speculators are no longer making money and the bag holders are underwater, the selling pressure increases because it no longer makes sense for them to buy or hold an asset that is decreasing in price when their money can be better spent elsewhere.
BSV does not face these same sell pressures. There are not many places where you can trade BSV with leverage. The market price of BSV is not interdependent on the amount of money stablecoin issuers print. Most importantly, most BSV users are enterprises and individuals interested in using their BSV on apps and services businesses provide, which means that most of the userbase has no incentive to dump their coins when markets look grim.
These trends are only going to get amplified as time goes on. Many BTC businesses and supporters have a primary goal to bring more speculators into the network, while many BSV businesses have a goal to acquire new customers and users that build on top of the protocol because it optimizes their businesses or brings practical value to consumers.
Because BTC does not have any viable use-cases outside of speculation, its holders will always be inclined to sell when events take place that pushes the price of the coin or token down—especially when the price gets dragged below the average buy-in price or psychologically significant price levels.
On the other hand, BSV users are typically inclined to purchase more BSV when prices are low because many use BSV in their business models or pay for different actions and features on the platforms that consumer-facing businesses provide.
There is no telling where the markets will go in the short term, but long term, business blockchains like BSV that have features that businesses can capitalize on to become more efficient and revolutionize their industries have a bright future.
The blockchain and digital asset spaces are moving away from speculative crypto coins and tokens, DeFi apps and services with high-risk economic models, and every other type of offering that takes money into its system but does not create products or services that individuals actively use and pay for. Instead, the industry is moving toward legitimate products and services that make measurable amounts of value in the world.
Watch: The BSV Global Blockchain Convention panel, The Future World with Blockchain
https://www.youtube.com/watch?v=v9hDGDoy1mMVideo can’t be loaded because JavaScript is disabled: What will the future world look with blockchain? | Somi Arian, Quirze Salomó, Latif Ladid | #GBC22 (https://www.youtube.com/watch?v=v9hDGDoy1mM)
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.
BitOasis disclosed laying off about five percent of its employees, which the CEO and Co-Founder, Ola Doudin, said is equivalent to nine employees across its offices in Dubai, Abu Dhabi, and Amman.
The unit will be headed by Tencent Games Global's Chief Technology Officer Li Shen and will be part of the conglomerate's Interactive Entertainment business group.
Huobi has obtained a license in Dubai but is yet to secure approval to provide digital asset trading services, in addition to its new license in New Zealand.
Gone in 60 seconds! This is what happened when Bitcoin-powered Twetch dropped its latest NFT collection, "Cozy Hoodie," during its launch on Wednesday this week.
Join the official Bitcoin SV Discord channel: www.discord.gg/bsv