Potentially providing a windfall for holders of the digital currency, Bitcoins underlying software code could be split, to create a clone called the ”Bitcoin Cash.”
This initiative is being led by a small group of mostly China-based Bitcoin miners that get paid in the currency for contributing computing power to the Bitcoin network. Since they are not happy with the proposed improvements to the currency’s technology, they have initiated whats known as ‘Bitcoin Fork’ that is set to be activated on August 1.
Bitcoin Fork is where a blockchain, a public ledger of all Bitcoin transactions, splits into 2 potential paths. So basically if you have a balance in Bitcoin right now, then you would have the exact same balance in Bitcoin Cash.
There has been some negative press and rumors that people might have their Bitcoins banished and lose a lot of value, but there is nothing to worry about, at least not for now.
For all the Bitcoin owners out there, it’s very important to understand this phenomenon because something like this can alter the future of your valuable assets, and it makes sense to be prepared.
What this effectively means is that if you have access to your ‘private key’ such as a paper wallet or Bitcoin wallets on your computer or phone, then you are going to be fine and be able to spend your Bitcoins in both of the two currencies. However, if you have your Bitcoins on an exchange or in an online wallet, then you are going to depend on the policy of the company in question. They might, of course, allow you to spend the Bitcoins in both places, but then again they might not and simply pick a favorite, so it’s all up to them.
Here are some tips to help you protect your valuable Bitcoins and get the best out of this possible transition:
- If possible, try to avoid Bitcoin transactions on August 1, because you never know what could happen and the last thing you want is having your Bitcoin stuck in limbo due to all sorts of potential glitches
- Try keeping your coins in your own wallet (on a computer, phone or tablet, or in paper wallets)
- If you insist on keeping your Bitcoins at exchanges or in online wallets, make sure to do your due diligence and find out what kind of a policy the company in question has in the event of a fork
The main issue that fueled the Bitcoin Fork is the fact that Bitcoin as a network is too slow and expensive. For example, the Bitcoin network can right now handle around 6 transactions per second which is ridiculously low compared to Visa that can process 1,600 per second. So definitely something had to be done in order to make the whole network more efficient and powerful, taking into consideration the growing popularity of this virtual currency.
This type of hardboard split has happened before with Etherium which resulted in two currencies: Etherium and Etherium Classic.
Pet cleanup charges take many travelers by surprise
From rental cars to hotels, the travel industry is now actively charging customers for pet cleanup expenses.
Agriculture markets rally as China looks at TPP compliance
China passed a law on Friday protecting foreign investments and investors. This had been a key demand from the US...
How the building envelope impacts your property investments
The building envelope is the barrier between indoor and outdoor environments. Here’s how it plays an important role in your...
What indicates the start of a bull market run?
Predicting the stock market is difficult. If it were easy, there would be a lot more millionaires in the world....
Boom and busts: Monetary inflation stemming from fractional-reserve banking
This was a constructive week for the Dow Jones, up 1.49 percent in the BEV chart.
- Sponsored2 days ago
White Label Liquid (WLAB) is the custom producer CBD investors should keep an eye on
- Featured5 days ago
Co-working: The office space trend that keeps expanding
- Entrepreneurship5 days ago
How to use Facebook Marketplace ads to quickly boost your income
- Entrepreneurship3 days ago
3 ways to improve your social media storytelling