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Bitcoin SV Miners facing huge losses since Hard Fork: Bitmex

Bitcoin SV Miners facing huge losses since Hard Fork: Bitmex

Since the hard fork of Bitcoin Cash which split the chain into two: Bitcoin SV and Bitcoin Cash ABC back in November last year, the Bitcoin SV miners have been facing massive amounts of losses that amount to more than $2.2 million in order to keep the network secure. The major contributor of the Bitcoin SV mining operations is conducted by Calvin Ayre.

Bitcoin Cash Hard Fork:

Bitcoin Cash went through a hard fork last year with the two teams fighting over the technical direction of the blockchain. The two teams led by Roger Ver, one of the earliest known bitcoin investors and Craig Wright, commonly known as Faketoshi for claiming himself to be Satoshi Nakamoto fought each other for disagreement on the size of the blocks of BCH or Bitcoin Cash. Craig Wright had the aim of increasing the size limit of the blocks and thus forked Bitcoin Cash in order to create a new blockchain called Bitcoin SV.

Bitcoin SV Miners Facing Huge Losses:

As Bitcoin SV works on a proof-of-work consensus, the miners need to keep mining the blocks in order to support the chain against more than 50% attack, even if they keep facing losses. If the miners had stopped mining the Bitcoin SV chain, the value would have suffered badly. Also both the founder of Bitcoin SV, Craig Wright and the largest miner, Calvin Ayre are believed to own a very large sum of Bitcoin SV which helped them in continuing the mining operations and securing the network.

According to recent research by Bitmex which was published on the 12th of April, miners have been facing huge losses that amount to over $2.2 million. The following amount is estimated for just the electricity cost this is used to mine Bitcoin SV. If we take into account other mining expenses such as the overhead cost, employee cost as well as the depreciation of assets, the total amount shall be even more than $2.2 million.

Bitcoin Cash ABC Miners making profits:

On the other hand, miners of the 2nd chain i.e. Bitcoin Cash ABC have been making a good amount of profits since the hard fork which equals to almost $42.4 million.

Calvin Ayre: The largest Bitcoin SV miner

A report from CoinDance, a cryptocurrency statics provider shows that CoinGeek, a company owned by Calvin Ayre controls more than 28% of the total mining operations of Bitcoin SV. However, it is still uncertain why other 72% of the miners are still mining Bitcoin Satoshi Vision at a loss rather than mining Bitcoin Cash ABC or Bitcoin. The report also shows that mining Bitcoin SV is not at all profitable and does not make any sense.

Layla Harding

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