BINANCE RESEARCH: NON-ECONOMICAL REASONS MOTIVATE BITCOIN SV MINERS

In the complex world of cryptocurrency mining, profitability often reigns supreme. Why are some miners economically irrational when allocating computing resources between BTC, BCH, and BSV?Miners, armed with powerful hardware and sophisticated algorithms, typically chase the most lucrative blockchain, maximizing their returns on investment.However, a recent report by Binance Research, the research arm of the leading cryptocurrency exchange Binance, sheds light on a fascinating anomaly: the motivation behind Bitcoin SV (BSV) miners.The report reveals that, contrary to conventional wisdom, purely economic factors do not solely drive the allocation of computing resources to BSV. 時価総額9位のビットコインsv（bsv）のマイナーは、経済的なモチベーションで動いていない。 仮想通貨取引所バイナンスのリサーチ部門が18日にレポートを発表した。This counter-intuitive finding raises pertinent questions about the factors influencing miner behavior within the cryptocurrency ecosystem. The employees of the research unit of the Binance cryptocurrency exchange analyzed the trends in the space of Bitcoin mining and came to the conclusion that its participants often made not the mostWhat hidden incentives or strategic considerations could possibly outweigh the allure of higher profits? Potential reasons for seemingly suboptimal mining allocations include varying liquidity conditions, a partial lack of mature derivatives products (to hedge future price exposure), additional rewards from merged mining, and differences in the structure of mining pools.How can we explain the dedication of miners to a blockchain that, according to Binance's estimates, often results in significant financial losses?Let's delve into the intricate details of the Binance Research report and explore the non-economic drivers behind BSV mining, uncovering the complexities that shape the landscape of decentralized digital currencies, and the underlying reasons these miners aren't solely driven by profit. The employees of the research unit of the Binance cryptocurrency exchange analyzed the trends in the space of Bitcoin mining and came to the conclusion that its participants often made notWe will also examine alternative motivations and the broader implications for the crypto industry.

Understanding Bitcoin SV Mining Profitability

Before exploring the non-economic factors, it's crucial to establish a baseline understanding of Bitcoin SV's mining profitability compared to other prominent cryptocurrencies like Bitcoin (BTC) and Bitcoin Cash (BCH). Research conducted by major crypto exchange binance suggests that the motivation driving Bitcoin SV miners is non-economic in natureBinance Research conducted a thorough analysis to estimate mining profitability for these three cryptocurrencies, taking into account factors such as block rewards, transaction fees, and mining difficulty. A new report from Binance Research shows that many bitcoin miners have been mining Bitcoin SV and BCH to some extent with significantly lower profitability.Difficulty adjustments on the Bitcoin SV network affect mining profitability.

The core finding of the report highlights a significant disparity: mining Bitcoin SV often results in considerably lower profitability compared to mining Bitcoin. 根據主要加密貨幣交易所Binance在12月18日發布的報告，推動比特幣SV（BSV）礦工的動機本質上是非經濟的。 該交易所的研究機構Binance Research試圖評估比特幣（BTC），比特幣現金（BCH）和比特幣SV的挖礦獲利能力。In some periods, BSV miners have even incurred substantial losses. Binance Research provides institutional-grade analysis, in-depth insights, and unbiased information to all participants in the cryptocurrency and digital asset industry.As an example, the Binance Research report pointed out that between November and December 2025, BSV miners collectively sustained losses estimated between $12 million and $13 million. The motivation driving Bitcoin SV miners is non-economic in nature, according to a Binance report. The motivation driving Bitcoin SV (BSV) miners is non-economic in nature, according to a report released by major cryptocurrency exchange Binance on Dec. 18. Binance Research, the exchange s research arm, has tried to estimate mining profitability for Bitcoin (BTC), Bitcoin MoreThis staggering figure underscores the apparent economic irrationality of allocating resources to BSV mining.

Non-Economic Motivations Driving BSV Miners

Given the demonstrably lower profitability, the question arises: what compels miners to continue supporting the Bitcoin SV blockchain? The motivation driving Bitcoin SV (BSV) miners is non-economic in nature, according to a report released by major cryptocurrency exchange Binance on Dec. 18. Binance Research, the exchange s research arm, has tried to estimate mining profitability for Bitcoin (BTC), Bitcoin Cash (BCH) and Bitcoin SV.The Binance Research report suggests several non-economic motivations that might influence their decisions:

• Varying Liquidity Conditions: While Bitcoin might offer higher block rewards, access to those rewards might be constrained by liquidity issues. A motiva o que leva os mineradores de Bitcoin SV n o de natureza econ mica, de acordo com um relat rio divulgado pela Binance em 18 de dezembro. A Binance Research, o bra o de pesquisa daSelling large quantities of mined Bitcoin to cover operational expenses could be challenging if market liquidity is low, potentially making BSV, even with lower rewards, a more readily convertible option.
• Lack of Mature Derivatives Products: Miners often rely on derivatives products to hedge against price volatility. 根据主要加密货币交易所Binance在12月18日发布的报告，推动比特币SV（BSV）矿工的动机本质上是非经济的。 该交易所的研究机构Binance Research试图 付费投稿The report suggests that the relative lack of mature derivatives products for BSV compared to Bitcoin might influence miners' strategies. Why are some miners economically irrational when allocating computing resources between BTC, BCH, and BSV? Купить криптовалютуWithout effective hedging tools, miners might perceive BSV as a less risky option, even with lower potential profits.
• Additional Rewards from Merged Mining: Merged mining allows miners to simultaneously mine multiple blockchains using the same computing power. Skip to main content Bitcoin Insider. MenuWhile BSV might not be the most profitable chain on its own, the potential to earn additional rewards from merged mining with other compatible blockchains could make it a more attractive option.
• Differences in the Structure of Mining Pools: The structure and policies of mining pools can also influence miner behavior.Some pools might prioritize long-term stability and ideological alignment over short-term profits, attracting miners who share those values.Pool fees, payout structures, and minimum payout thresholds influence profitability.
• Ideological Alignment and Support for Dr.Craig Wright: Bitcoin SV's prominent figurehead, Dr. The research report stated that BSV miners incurred significant losses and stated that miners not driven by profit. From Nov 2025 to Dec 2025, BSV miners have collectively incurred a loss of around $12 million to $13 million. According to a report by Binance, the motivation driving Bitcoin SV (BSVCraig Wright, claims to be Satoshi Nakamoto, the pseudonymous creator of Bitcoin.A significant portion of BSV miners might be motivated by ideological alignment with Dr.Wright's vision for Bitcoin and a desire to support his project, irrespective of immediate financial gains.
• Belief in Long-Term Potential: Some miners might believe in the long-term potential of BSV, anticipating future technological advancements or increased adoption that could significantly boost its value and mining profitability. Binance Research also calculated the loss sustained by miners because of mining Bitcoin SV instead of Bitcoin. Per the report, in the November December 2025 period, BSV minersThey might view current losses as an investment in the future.
• Strategic Considerations: A larger entity might choose to mine BSV even at a loss to support the network and ensure its survival, thereby maintaining influence or control within that specific ecosystem. Bitcoin (BTC) is a peer-to-peer cryptocurrency that aims to function as a means of exchange that is independent of any central authority.BTC can be transferred electronically in a secure, verifiable, and immutable way.This could stem from commercial or strategic relationships within the BSV community.

The Role of Mining Pools in BSV

Mining pools play a critical role in the cryptocurrency ecosystem, aggregating the computing power of individual miners to increase their chances of finding blocks and earning rewards.The structure and policies of these pools can significantly influence miner behavior.For instance, some BSV mining pools might offer unique incentive programs or prioritize ideological alignment with the project, attracting miners who are less concerned with maximizing short-term profits.

Furthermore, the geographic distribution of mining pools and the regulatory environment in different jurisdictions can also play a role.Pools operating in regions with lower electricity costs or more favorable regulatory frameworks might be more willing to mine BSV, even at lower profitability, due to reduced operational expenses.

How do Mining Pools Impact Individual Miner Decisions?

Individual miners often choose pools based on a variety of factors beyond pure profitability.These include:

• Pool Fees: Lower pool fees translate to a larger share of block rewards for miners.
• Payout Thresholds: Miners prefer pools with lower payout thresholds to receive their earnings more frequently.
• Reputation and Reliability: A pool's track record in consistently finding blocks and processing payouts is crucial.
• User Interface and Support: An easy-to-use interface and responsive customer support enhance the mining experience.

The Impact of Market Liquidity on Mining Decisions

Liquidity, or the ease with which an asset can be bought and sold without affecting its price, is a critical factor in the cryptocurrency market.The Binance Research report highlights that varying liquidity conditions can influence mining decisions.Even if Bitcoin offers higher block rewards, miners might face challenges selling large quantities of their mined Bitcoin to cover operational expenses if market liquidity is low.

In such scenarios, BSV, despite its lower rewards, might be a more attractive option due to its potentially higher liquidity relative to the demand.This allows miners to quickly convert their BSV holdings into fiat currency or other cryptocurrencies, ensuring they can meet their immediate financial obligations.

The Influence of Derivatives Products on Risk Management

Derivatives products, such as futures and options, are essential tools for managing risk in financial markets.Miners often use these instruments to hedge against price volatility, locking in a future selling price for their mined cryptocurrencies and protecting themselves from potential losses.

The Binance Research report suggests that the relative lack of mature derivatives products for BSV compared to Bitcoin might influence miners' strategies.Without effective hedging tools, miners might perceive BSV as a riskier option, even with potentially higher profits.This could lead some miners to prefer Bitcoin, where they can use derivatives to mitigate price risk.

Examples of Hedging Strategies for Miners

Here are some common hedging strategies used by cryptocurrency miners:

1. Selling Futures Contracts: Miners can sell Bitcoin futures contracts to lock in a future selling price for their mined Bitcoin.
2. Buying Put Options: Purchasing put options gives miners the right, but not the obligation, to sell Bitcoin at a predetermined price, protecting them from downside risk.
3. Using Over-the-Counter (OTC) Desks: OTC desks facilitate large-volume trades, allowing miners to sell their Bitcoin directly to institutional investors without impacting the market price.

Bitcoin SV: A Unique Ecosystem

Bitcoin SV distinguishes itself from other cryptocurrencies through its focus on unbounded scaling and its commitment to restoring the original Bitcoin protocol as envisioned by Satoshi Nakamoto.Dr.Craig Wright, a prominent figure in the BSV community, claims to be Satoshi Nakamoto and actively promotes BSV as the true Bitcoin.

This unique ecosystem attracts miners who share Dr.Wright's vision and believe in the long-term potential of BSV.These miners might be willing to overlook short-term profitability in favor of supporting a project they believe will revolutionize the way the world uses digital currency.This is also a contributing factor to the non-economical reasons.

Future Outlook for Bitcoin SV Mining

The future of Bitcoin SV mining remains uncertain.While the Binance Research report highlights the non-economic motivations driving some miners, the long-term sustainability of this approach is questionable.For BSV to attract a broader base of miners, it needs to address the profitability gap compared to Bitcoin and other cryptocurrencies.Increased adoption, technological advancements, and the development of a more robust derivatives market could help improve BSV's mining profitability.

However, the ideological and strategic factors influencing BSV mining are likely to persist.As long as there are miners who believe in the project's long-term vision and are willing to support it, BSV will continue to exist, albeit potentially at a lower level of profitability compared to other cryptocurrencies.

Actionable Advice for Cryptocurrency Miners

For miners looking to make informed decisions about which cryptocurrencies to mine, here are some actionable tips:

• Conduct Thorough Research: Before allocating resources to a particular cryptocurrency, carefully research its mining profitability, market liquidity, and the availability of derivatives products.
• Diversify Your Portfolio: Consider diversifying your mining portfolio across multiple cryptocurrencies to mitigate risk and maximize potential returns.
• Join a Reputable Mining Pool: Choose a mining pool with a proven track record, transparent fees, and reliable payout policies.
• Stay Informed: Keep abreast of the latest developments in the cryptocurrency market, including technological advancements, regulatory changes, and market trends.
• Consider Hedging Strategies: Use derivatives products to hedge against price volatility and protect your mining profits.
• Assess Your Risk Tolerance: Determine your risk tolerance and adjust your mining strategy accordingly.

Conclusion: Key Takeaways on BSV Mining Motivations

The Binance Research report offers valuable insights into the complex dynamics of cryptocurrency mining, revealing that economic factors are not the sole drivers of miner behavior.In the case of Bitcoin SV, non-economic motivations such as ideological alignment, strategic considerations, and the pursuit of alternative rewards play a significant role in influencing miners' decisions.The report's core message underscores the complexity inherent in the cryptocurrency industry, emphasizing that individuals and groups can be motivated by a range of different reasons, including both profit and non-profit concerns.While profitability remains a key consideration for most miners, factors like liquidity, derivatives availability, and ideological alignment can significantly impact their choices.By understanding these non-economic motivations, we can gain a deeper appreciation for the intricate forces shaping the landscape of decentralized digital currencies.Remember to always conduct your own research and understand the risks involved before making any decisions about cryptocurrency mining.The world of cryptocurrency mining extends beyond mere profitability, encompassing a complex interplay of factors.