BSV Miners Lose $2.2 Million, Why Are They Still Persisting?

BSV miners are losing money massively, Beincrypto reports .

Bitcoin research firm BitMEX Research claims that BS miners are losing a lot of money. Blockchain and cryptocurrency rely almost entirely on mining, which creates and confirms new blocks of data on the blockchain. For Bitcoin and most other cryptocurrencies, transaction fees and block rewards can incentivize mining.

When it comes to BSV, BitMEX’s research shows that miners willing to commit to mining the coin are suffering huge losses. In fact, the cryptocurrency has cost miners more than $2.2 million since the hard fork.

So why would miners choose to mine BSV even if they suffer losses? The answer may be related to early investment.

Miners may be willing to keep working on the chain in the hope that the market will continue to grow — given the future rewards. This upfront investment is not uncommon.

Another reason is that some miners may receive off-chain rewards or compensation from one or more third parties, which incentivizes them to continue mining even if they incur losses because those losses will be recouped.

Whatever is driving the continued mining of the BSV blockchain, the reality is that there is no such thing as endless bleeding. If the coin cannot start generating profits for miners, it will eventually collapse.