What is the first thing that comes to mind when you hear the words Bitcoin fork? Trying to understand the language spoken by Cryptocurrency investors, can be quite daunting at the beginning. Allow us to give you the low down of what ‘cutlery set’ a Bitcoin fork refers to.
What Is A Crypto Fork And Split?
Bitcoin and all other cryptocurrencies are built on blockchains. The blockchain gives each crypto its unique features and characteristics, such as anonymity or fast transaction speed etc. Bitcoin’s blockchain was created years ago and as with all things electronic, needs an upgrade when the demand for the current product or service increases. More people have become familiar with Bitcoin and alternative coins, or Altcoins and have since Bitcoin’s inception, invested heavily into the gold standard of the crypto world. The consequence is that Bitcoin’s blockchain has been slow when it comes to transaction speed and various Altcoins have come up with new and improved ways of facilitating faster transactions. In order for Bitcoin’s blockchain to ‘upgrade’ from 1MB to 2 MB, a hard fork or split is necessary. This split is called Segregated Witness (SegWit) and it was proposed in June 2017. A group of miners and developers have come together to go over every possible option of upgrading Bitcoin’s blockchain. This proposal was agreed upon and implemented successfully. The holders of Bitcoin were given Bitcoin Cash. All was well in the land of cryptocurrencies for a while. That was until late October when the crypto world came to a standstill again, when SegWit2X was expected to be implemented. Once again, the loyal holders of Bitcoin were promised another ‘free coin’ namely Bitcoin Gold. However, SegWit2X was later cancelled.
How Does It Affect My Investment?
With the successful implementation of SegWit, Bitcoin Cash was introduced. Bitcoin Cash is therefore referred to as ‘Bitcoin’s fork’, since those who had Bitcoin or access to their own private keys at the time of SegWit were rewarded with Bitcoin Cash. This ‘free cash’ quickly made headlines as its aim was to take the weight off of Bitcoin’s shoulders when it comes to conducting business and trading. One could use Bitcoin Cash, which has faster transaction speed, to buy and sell.
Latest News On The Fork
The news that SegWit2X has been cancelled caused the price of Bitcoin to escalate to a new record high of over $7 000. Since the news broke, about a week ago, Bitcoin has stabilized and is currently around $6 400 per coin. Bitcoin Cash on the other hand has come to its rightful place and reached over $2 000 recently. Various cryptocurrency analysts were skeptical about Bitcoin Cash and said that it would not end in much but, as is the standard of the crypto world, nothing is certain.
The decision makers behind the cancellation of SegWit2X have said on social media that should the need for another Bitcoin blockchain upgrade be required, the community would once again convene to decide upon the best course of action. Until then, keep an eye out on participating exchanges who may give Bitcoin holders Bitcoin Gold and happy trading.