Bitcoin SV Scandal - Most Network Transactions are Bots

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4 years ago

Potentially over 96% of SV network transactions are microtransactions that make no logical sense - often less than 1/10th of one cent.

Before going further I want to acknowledge two things. First off, this article is largely based off of this fantastic expose from Bitcoinist.com: https://bitcoinist.com/bitcoin-sv-volume-is-heavily-manipulated-data-finds/

Second, I want to acknowledge that to some of you all this is not new news, but I think it is important enough to still talk about. (Also I think people here will love it).

Earlier this year, crypto researcher and asset manager Timothy Peterson tweeted out that the average transaction size on the SV network, based on numbers from Coinmetrics was less than 1/10th of one cent. This obviously seems to indicate that something is deeply wrong.

One explanation is that there is an extreme level of bot activity on the network, especially given the small number of active SV wallets, is designed to inflate the number of transactions on the network so as to make it look like Bitcoin SV is in much more demand than it really is. To a casual observer this may make it seem that the asset is in demand, and therefore much more valuable.

This would make sense given that one of the major criticisms of Bitcoin SV is that it is largely based around one guy (who has repeatedly claimed to be Satoshi himself, yet failed to provide good evidence), and isn't really used by a large number of people. Heavy bot activity would theoretically make it look like this was no longer an issue.

However, some people propose that there are alternative explanations. For example, a writer for Coingeek argues that "a transaction is a transaction". They argue that these transactions show utility regardless, and therefore are useful to the network.

Conclusion:

Personally, I do not feel that "a transaction is a transaction". By that logic you could take any shitcoin and make it totally valid if you just design an AI to make millions of transactions on its network.

There is also a question that we need to ask: Why is somebody doing this with the Bitcoin SV network? I don't know how the Coingeek author would argue that. Are they just doing these transactions for fun? There must be some motivation.

To me it makes more sense that there is some purpose behind this that relates to changing the price, or at least perceived demand, for Bitcoin SV. This seems like a way to boost the price of Bitcoin SV by making it look like it is in high demand, and trying to entice investors who may not pay a ton of attention to the details.

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4 years ago

Comments

Thanks a lot

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4 years ago

Thank for information good article

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4 years ago

I always wonderd how they couldve gotten so much adoption..

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4 years ago

Thanks a lot. Today i learn something new from your article. Hope i can convence my way by follow your research. Best of luck.

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4 years ago

Be it BOT or not, as long as investors won't be discouraged, I give my support

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4 years ago

Thank you for sharing your article

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4 years ago

great article . very informative

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4 years ago

Nice

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4 years ago

nice

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4 years ago

Subcaribe me

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4 years ago

To me it makes more sense that there is some purpose behind this that relates to changing the price, or at least perceived demand, for Bitcoin SV. This seems like a way to boost the price of Bitcoin SV by making it look like it is in high demand, and trying to entice investors who may not pay a ton of attention to the details.

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4 years ago

Thanks for the info.

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4 years ago

A lot of BSV transactions are merely intended to store data in the blockchain (in OP_RETURN outputs). See for example this report.

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4 years ago

I learn alot of things from this post .Thanks for sharing...Subscribed.plz subscribe back .thank and stay blessed

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4 years ago

Good night

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4 years ago

Oh my i read about this too.

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User's avatar errolmoako I am a thief who steals articles and claim it as my own
4 years ago

As I am new to know about cryptocurrency there I can learn Many thing. Thanks FOR makinhg Such an useful article

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4 years ago

No problem, I'm glad you found it informative!

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4 years ago

Subscribe me i will subscribe u back

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4 years ago

nice

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4 years ago

It's amazing

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4 years ago

Great work bro.lets help each other

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4 years ago