Is Bitcoin SV (BSV) A Good Investment?

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Bitcoin SV (BSV) emerged from a contentious split within the cryptocurrency community, promising to scale Bitcoin’s original vision. But does it hold up as a worthwhile investment in 2025? In this in-depth analysis, we’ll examine BSV’s historical performance, technological design, security record, and competitive landscape to determine whether it deserves a place in your portfolio.

Historical Performance of Bitcoin SV

Bitcoin SV launched in November 2018 as a fork of Bitcoin Cash (BCH), which itself is a fork of Bitcoin (BTC). The project was positioned as a return to what its proponents call the “original Bitcoin protocol,” emphasizing large block sizes for higher transaction throughput.

Initially, BSV showed promise. By January 1, 2019, it had appreciated 98% against BTC—a strong start fueled by speculation and promotional campaigns. However, that momentum didn’t last.

Since early 2019, BSV has consistently underperformed both BTC and Ether (ETH). While the broader crypto market experienced massive growth during the 2020–2021 bull run, BSV remained largely stagnant or declined in relative value. Even in USD terms, its gains were modest: rising from $88.30 in January 2019 to a peak of $139.30 in August 2021—an increase of about 58%.

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But context matters. During that same period, the S&P 500 gained over 82%, despite being a lower-risk asset class. Meanwhile, BTC returned more than 900%, and ETH soared by nearly 1,800%. This highlights a critical concept: opportunity cost.

If you had invested in BSV instead of BTC or ETH during this window, you would have missed out on exponential returns. For serious investors, underperformance isn't just disappointing—it's a strategic misstep.

Does Bitcoin SV Have a Future?

To assess BSV’s long-term viability, we must evaluate its core use cases: store-of-value and medium-of-exchange—the two primary functions of any successful cryptocurrency.

BSV as a Store of Value

A reliable store of value must be secure, scarce, and resilient over time. Gold, real estate, and even Bitcoin are often cited examples.

BSV fails on multiple fronts here. Most critically, its security model is deeply flawed.

One key metric for blockchain security is hash rate—the total computational power securing the network. A higher hash rate makes attacks more expensive and less likely. BSV’s hash rate has been in steady decline for years, making it increasingly vulnerable.

In August 2021, BSV suffered a confirmed 51% attack, where malicious actors gained control of the majority of mining power. This allowed them to rewrite transaction history and execute double spends—spending the same coins twice. Multiple exchanges suspended BSV trading during these events due to fraud risks.

A store of value that can be manipulated through attacks is fundamentally broken. Trust erodes quickly when users can’t rely on the integrity of the ledger.

BSV as a Medium of Exchange

Proponents argue that BSV excels as a payment network due to its large block sizes, which allow for thousands of transactions per second at very low fees—far surpassing Bitcoin’s base-layer capabilities.

Technically, this is true. BSV transactions are faster and cheaper than BTC’s on-chain transfers. In theory, this makes it suitable for micropayments and high-volume applications.

However, reality paints a different picture. The rise of stablecoins like USDC and USDT has transformed how value moves across blockchains. These assets offer stability, fast settlement, low fees, and broad adoption—without the price volatility inherent in BSV or other speculative cryptos.

Moreover, decentralized stablecoins and Layer-2 solutions on Ethereum (e.g., Optimism, Arbitrum) provide scalable alternatives with stronger ecosystems and developer support.

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Given these superior options, BSV’s edge as a payment rail disappears. Users prefer predictable value transfer over volatile tokens—even if they’re cheap to transact.

Network Effect and Competitive Positioning

The success of any blockchain depends heavily on network effect—the idea that a network becomes more valuable as more people use it.

Bitcoin dominates in this regard: more users, more developers, more institutional adoption, and greater trust. Even with higher fees, BTC sees significantly more daily active addresses than BSV—a clear sign of stronger engagement.

BSV struggles with adoption outside niche communities. Its transaction volume and wallet activity remain minimal compared to major blockchains.

Additionally, Bitcoin’s own evolution threatens BSV’s relevance. The Lightning Network, a Layer-2 scaling solution, already enables instant, low-cost BTC transactions. As Lightning adoption grows, BSV’s main technical advantage evaporates.

Leadership and Reputation Risks

Another major concern is Craig Wright, the controversial figure leading the BSV project. Wright claims to be Satoshi Nakamoto, Bitcoin’s anonymous creator—a claim widely disputed by the crypto community.

His aggressive litigation against developers, researchers, and media outlets has created significant backlash. Many view his actions as attempts to control narratives rather than contribute openly to technological progress.

This toxic reputation affects investor perception. Projects led by polarizing figures often struggle with credibility, limiting partnerships, exchange listings, and ecosystem growth.

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Core Keywords

Frequently Asked Questions (FAQ)

Q: Can Bitcoin SV recover and become valuable again?
A: While price recoveries are possible in speculative markets, BSV faces structural challenges—poor security, weak adoption, and strong competition—that make sustained growth unlikely without major technological or governance changes.

Q: Has Bitcoin SV been hacked?
A: Yes. In 2021, BSV experienced multiple 51% attacks resulting in double spends. These incidents exposed serious vulnerabilities in its consensus mechanism and undermined confidence in the network.

Q: Is BSV better than Bitcoin for payments?
A: Not in practice. While BSV supports cheaper transactions, Bitcoin’s Lightning Network offers similar benefits with greater security and growing adoption. Plus, stablecoins provide a more stable alternative for everyday payments.

Q: Why is Craig Wright controversial?
A: Craig Wright claims to be Bitcoin’s creator but has failed to provide verifiable proof. He has also initiated numerous lawsuits against critics, which many see as an attempt to silence dissent rather than prove his claims.

Q: Should I invest in Bitcoin SV for long-term gains?
A: Based on historical performance, security issues, and weak fundamentals, BSV does not appear to be a sound long-term investment. More established projects offer better risk-adjusted return potential.

Q: Does BSV have any real-world use cases?
A: Limited ones. Some niche applications exist in data storage and enterprise solutions promoted by the BSV camp, but these lack widespread traction or independent validation.

Final Verdict: Is Bitcoin SV a Good Investment?

No—Bitcoin SV is not a good investment.

It underperforms major cryptocurrencies and even traditional assets like the S&P 500. It suffers from repeated security breaches, lacks a compelling use case amid rising stablecoin dominance, and operates with a damaged reputation.

While speculation may drive short-term price movements, long-term value comes from utility, trust, and adoption—all areas where BSV falls short.

For investors seeking exposure to digital assets with strong fundamentals, better alternatives exist across the crypto landscape.