Coinbase, the largest cryptocurrency exchange in the United States, has announced the delisting of Bitcoin SV (BSV), a copy of bitcoin derived from another copy, Bitcoin Cash (BCH). The broker’s measure resulted in the forced conversion of users’ BSV to other cryptocurrencies available on the platform, after deducting transaction fees.
According to the broker, users who owned BSV were notified that the deletion would automatically liquidate their assets.
Coinbase warned of the possibility that users would not receive compensation for the conversion, especially if the BSV holdings were small, as transaction fees and market volatility could completely wipe out the value of the asset.
We have ended support for Bitcoin SV (BSV). We appreciate your patience and cooperation. https://t.co/35AhSAerJt
— Coinbase Assets 🛡️📞 (@CoinbaseAssets) February 3, 2024
After the end of support date, Coinbase removed all BSV residue from users’ wallets, preventing any possibility of withdrawal. The move follows the exchange’s advance notice in November, which instructed users to transfer their BSV to third-party wallets before the January 9 deadline.
End of the Bitcoin Satoshi Vision?
Coinbase’s decision reflects growing concerns about the security and stability of BSV, marked by 51% attacks in 2022 and significant volatility.
Coinbase also reminded its users of the potential tax consequences arising from forced conversion, emphasizing users’ responsibility to understand and act on their individual tax situation.
Coinbase’s removal of BSV follows a trend of other brokers, such as Robinhood, reducing the cryptocurrency’s presence in the market.
It is worth remembering that Bitcoin Satoshi Vision (BSV) is a cryptocurrency that emerged from a hard fork of Bitcoin Cash (BCH) in November 2018. BSV’s main goal was to restore the original Bitcoin protocols defined by pseudonymous creator Satoshi Nakamoto. , which increases the block size to allow more transactions and theoretically make the network more scalable.
The name “Satoshi Vision” reflects this intention to follow what its proponents believe is Nakamoto’s original vision.
However, BSV has been the subject of significant controversy and criticism within the cryptocurrency community, with some people even considering it a “scam.”
One of the main criticisms of BSV is its concentration of mining power. In decentralized cryptocurrency networks, mining power is expected to be distributed among many participants to avoid centralized control.
However, BSV faced accusations that a significant portion of its mining power was concentrated in the hands of a few, increasing the risk of 51% attacks, where a single participant or group of participants could control the majority of mining power and potentially could manipulate. blockchain.
Additionally, the crypto community has raised concerns about the governance practices and transparency of the BSV project. Controversial leadership and unproven allegations of Craig Wright contributed to an atmosphere of distrust.
Legal disputes involving Wright and various figures and entities in the crypto space have only increased doubts about BSV’s credibility.
Accusations of it being a ‘scam’ often stem from these points: questionable governance practices, controversial leadership, and the potential for market manipulation due to the centralization of mining power.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.