How BSOV Token Price Can Benefit From Greater Mining Costs
The BSOV Token
With all the noise, scams, price fluctuations, and fake endorsements, it becomes really hard for a young and amateur investor to pick out tokens that hold value. Boasting about 7,000+ cryptocurrencies at the time of writing, the world of cryptocurrencies has quickly grown into a nurturing ground for quick money projects.
Well today, let us not dive into the problems and loopholes that the market might have. Today, let us look at a project that does not boast any unrealizable goal, does not lure in innocent investors just to scam them, and does not fall into the tokenization trap.
Today, let us discuss BSOV – Bitcoin Store of Value.
Introducing the Deflationary Tokenomics of BSOV
Anyone who has taken up an introductory course in Economics would understand that for an asset to be valuable over time, it has to prove its worth as a Store of Value. A Store of Value is an asset that holds value over long periods. It is considered as a rule of thumb among economists that an asset that is scarce or deflationary, along with having real-world use, will continue to hold value even when other assets tend to fall over time.
“BitcoinSOV (BSOV) is a 100% community-driven cryptocurrency, and does not rely on centralized decision-makers or traditional power structures to survive. This deflationary grassroots movement is built from the bottom-up and is fully reliant on people like you to build it. We use non-violent methods of action – we fight for financial independence, and freedom from inflation.”
The Bitcoin Store of Value or BSOV is a cryptocurrency initiated by anonymous internet user “Mundo”. As he/she/they described in the whitepaper, BSOV was designed as a protocol to maintain stability over long periods of time.
It is important to note that BSOV is not in any way linked to the controversial BSV. At first glance it could seem like BSoV is BSV. But, unlike Bitcoin and its contentious hardforks – BSoV is a completely new token where most of the tokens are not yet distributed.
- Founded: 2019
- Ticker Symbol: BSOV
- Website: BSOV.io
- Issued By: BSOV Community
- Built on: ERC token on the Ethereum Network
- Traded on: UniSWAP ( It is important to read the instructions on this page before purchasing BSOV. Since BSOV has a 1% transaction burn, a user must manually set price slippage tolerance to a minimum of 1%, 1.25%, or 1.50% if you want to buy, sell, or remove liquidity using Uniswap v2. )
- Token Supply: 21 million
- Deflation Schedule: Burning 1% of transaction fee in every block
Features of the BSOV Network
Deflationary: BSOV follows a 1% burning schedule. The 1% transaction burn makes the BitcoinSOV (BSOV) cryptocurrency deflationary by design compared to other inflationary cryptocurrencies. This stimulates supply scarcity and reduces token velocity. On the BSOV Network, you are penalized for transacting your BSOV. Thus, to avoid loss you are incentivized to hold the tokens instead. Note that, as of mid-2020, about 3.3% of all BSOV mined has been destroyed.
Community Backed: Like its predecessor Bitcoin, BSOV has a loyal and active developer community. The members of the community have taken over the reins after their founder, the anonymous Mundo, inadvertently left the project. Since then, the Community has periodically updated the protocol, designed marketing strategies, came up with a project timeline, and initiated the mass adoption of BSOV.
No Single Point of Failure: Due to its decentralized nature, absence of founder and community backing, BSOV has proven to be immensely resilient to worries of centralization. No single party can make changes to the BSOV network without the content of the majority of the community.
Mineable: BSOV was designed with Proof-of-Work (PoW) as the consensus mechanism. PoW mandates the computational mining of BSOV tokens in exchange for securing the protocol. One of the plans of the network is to gradually make the mining of BSOV more and more difficult, thereby raising the cost of mining. By doing so, one can expect an upward pressure in price as the cost of mining goes up.
Greater Mining Cost + Scarcity = Positive Push on Token Price?
Solving the Token Velocity Problem is one of the major goals of the BitcoinSOV project. In Simple words, the Token Velocity Problem talks about the lack of long term incentive mechanisms in many cryptocurrencies today. Most cryptocurrency projects encourage frequent trading due to constant volatility, without paying much attention to long-term adoption. The token holders are incentivized to sell their token for other tokens which are better suited as a store-of-value (SoV) in the long run.
BSOV Deflation Schedule
What BSOV does differently is that it constantly tries to limit the number of tokens in circulation and increase the net cost of mining. This ensures that slowly, but gradually, an upward pressure on the asset is initiated. On the BSOV protocol, 1% of the transaction fees from each and every block is burned by the community, thereby limiting the tokens and encouraging users to hold more. The project aims to make sure BSOV evolves into a reliable store of value, unaffected by market volatility and influence of supply and demand.
The BSOV project wants to show that by putting an upwards pressure on the difficulty of mining, along with limiting token supply, the cryptocurrency could achieve the rank of being a Store of Value. A Store of Value that the world can depend on.
To understand the features, motivation, and intricacies of the protocol, we will look deeper into BSOV in the following weeks.