Last week BSV surged more than 100 percent to hit an all-time high of $458 and momentarily became the fourth largest cryptocurrency by market cap overtaking Bitcoin Cash. The rally was largely attributed to the news that the Bitcoin SV advocate Craig Wright received the private keys to a wallet that supposedly contains millions of Bitcoins.
Now as BSV is ready for an upcoming hard fork, analysts are speculating if this would yet again take the token to new highs as it is quite evident by now that BSV rallies are often triggered by the news.
An upgraded Bitcoin
BSV is scheduled for a major Hardfork event on February 4, 2020. The fork is dubbed “Genesis” because this fork is aimed at restoring the original Bitcoin protocol. The developers behind the coin have developed two testnets, Genesis Testnet is running with the planned features and improvements for the mainnet that enable users to test their application behavior prior to the hard fork.
The biggest change this fork brings is the removal of the default hard cap for block sizes. Theoretically, the transaction capacity should be infinite, but that’s not possible. However, it is expected to significantly allow for greater transaction volumes. The miners would be able to decide the consensus block size and transaction capacity.
Furthermore, the fork would also undo any changes made by developers over time. This includes imposed limits on Bitcoin’s technical capabilities that greatly affect performance. The primary changes that’ll be made can be categorized into three groups:
- Removing artificial limits imposed on the protocol
- Restoring the full original functionality of Bitcoin Script – the programming language used within the Bitcoin protocol.
- Removing some detrimental changes that were made to Bitcoin.
Lastly, the fork will stabilize the protocol by implementing Satoshi’s original vision of Bitcoin. According to the devs, a stable ruleset would ensure “that a monetary or data transaction performed on the blockchain today will be valid in 2, 5 and 100 years from now.”
Another Pump incoming?
Following the pump last week, BSV began descending from its highs to drop 40% and hit press-time levels of $262. Despite the drop, BSV’s positive trend continues as it surged by 20% and is currently sitting at $318.53, with a market cap of $5.8 billion at press time.
Now it looks like the price of BSV is already reacting in anticipation of the Genesis hard fork. Despite all the controversies, BSV holders are thrilled by its performance as by far it is the best performer of 2020. However, considering previous price actions, it is unlikely that BSV would hold at a higher price level even if it pumps.