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Bitcoin forks have been a popular topic among crypto enthusiasts since their inception. As someone who has been involved in the crypto space for a while now, I have come to appreciate the importance of understanding the various forks that Bitcoin has gone through. In this guide, Iu2019ll be diving deep into the specifics of Bitcoin forks.
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Understanding Bitcoin Forks • Bitcoin forks have been a popular topic among crypto enthusiasts since their inception. As someone who has been involved in the crypto space for a while now, I have come to appreciate the importance of understanding the various forks that Bitcoin has gone through. In this guide, I’ll be diving deep into the specifics of Bitcoin forks. • First, we’ll explore what a Bitcoin fork is and what it entails. Then, we’ll examine the Bitcoin Cash fork as an example of how forks can drastically impact a cryptocurrency’s community and value. So, whether you’re just getting into Bitcoin or are a seasoned pro, this guide is here to help you better understand the intricacies of Bitcoin forks.
What is a Bitcoin Fork? A Bitcoin Fork is a process where the underlying rules of the cryptocurrency are modified, leading to a split in the blockchain, resulting in two distinct types of currency. This can happen due to disagreements between developers, or community members, about how the crypto should function. One type of currency adheres to the existing rules, while the other creates new ones. This splitting results in Bitcoin’s original blockchain being maintained by one group and changes implemented for another coin. The Bitcoin Cash fork was like a messy divorce where both parties got to keep the house and split the assets.
After its inception, the BCH fork led to a reduction in network congestion, faster transaction times and lower fees. However, it also raised concerns about centralization risks and exposure to attacks due to reduced hashing power. Moreover, the split resulted in two separate blockchains and two currencies; BCH and BTC (Bitcoin). This made it possible for individuals who held BTC before the fork to claim an equal amount of BCH that gets awarded in proportion to their pre-fork BTC holdings.
Interestingly, when BCH first launched as a new cryptocurrency, it experienced incredible growth in value from $300 per coin within days after release to an all-time high around $4000 per coin during late December 2017 – early January 2018. Despite this performance however, flash crashes have affected BCH over time – including a dip of up to 87% from all-time highs and being considered volatile even till date. What do forks and relationships have in common? Switching to new rules and coins can be a messy breakup, but it’s worth considering for your financial future. SOURCE CREDIT; https://blog.netcoins.com/a-comprehensive-guide-to-understanding-bitcoin-forks/
