BITCOIN FORK : How does it affect your Bitcoin?

BITCOIN FORK: How does it affect your Bitcoin?

Lately, Bitcoin price has been growing at the speed of light. We have seen the volatility of bitcoin
increasing, mostly in the favor of Bitcoin buyers.

This surge of Bitcoin price has affected the speed of transaction from peer to peer, This occurs because the number of Bitcoin users has increased significantly.

This leads to a proposed upgrade to improve efficiency and speed of transaction. A dispute among the developers of Bitcoin arose, which lead to a division amongst them.

The new Bitcoin software upgrade called Segwit2x was designed to increase network capacity to handle more transaction faster.



Regardless of this upgrades, not all the members are happy with the upgrade. Apparently,

A quite small fraction of members spearheaded by former Facebook engineer Amaury Sechet, still believes that Segwit2x doesn’t go far enough in scaling Bitcoin’s capacity. Sechet’s faction says that on August 1st, thy will launch a fork known as Bitcoin Cash, and take some of Bitcoin’s processing power with them.

(fortune.com)

BITCOIN FORK: How does it affect your Bitcoin?

They are planning to make Bitcoin cash posses a bigger block size than Bitcoin after Segwit2x. Apparently giving it more capacity to handle transactions with low fees compared to Bitcoin.

They want to avoid more transactions being handled by secondary systems like what Segwit2x will do.

Bitcoin proper will be basically unaffected by the creation of the new cryptocurrency.The fork generally refers to changes in the software that can affect user sentiment and price.

With the change bound to happen, it’s important to note that all holders of Bitcoin will get equivalent funds in Bitcoin Cash on the day of the fork.

Apparent a futures market for Bitcoin Cash has already transpired and currently values it at around 13% of Bitcoin’s price.



BITCOIN FORK: How does it affect your Bitcoin?

What does this mean for the split? what will happen during the split? approximately $6 billion in new market value will be created from nothing.

Both Bitcoin and Bitcoin cash are likely to survive and become two new virtual currencies, and thus it will depend on the users to decide which service they preferred.

As a bitcoin user, some companies are advising to keep your bitcoin in a wallet on the 1 August 2017, the date of the fork.

For Bitcoin miners, your mining rigs might need an updated software to accommodate the change. Let’s all stay tuned for the day of history.

We will be happy to hear your thoughts

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