What is a Bitcoin Fork?
You may have heard a lot of noise in the media about Bitcoin “forking”. Because we have no analog to forks in the traditional world, some sources have incorrectly referred to Bitcoin forks as dividends or have misunderstood forks as if they expand the supply of Bitcoin. The truth, however, reveals itself in market data. Unlike a stock split, where the resulting shares still refer to the original company, a Bitcoin fork is much more analogous to creating new unrelated digital assets out of thin air at zero cost, and gifting them to existing holders of Bitcoin. A Bitcoin fork does not affect the 21 million supply limit of Bitcoin itself. Let’s dive in.
Imagine you have the world’s gold stored in the ultra securely engineered Fort Knox under heavy armed guard. You build a small, poorly engineered shack and call it Fort Knox Lite, securing it with a single guard. You paint some rocks a gold color and put them in the shack. You then announce to the world that you’ve “forked gold” and issued every holder of gold an equivalent amount of free rocks inside your shack.
We need lots of miners guarding Bitcoin, making it expensive to 51% attack. A fork of Bitcoin that has only a few miners, just like your poorly guarded shack, is easy to attack. The code is probably structurally unsound, built by a small inexperienced team of developers with poor peer review, just like your shack. Forked coins aren’t accepted by any existing nodes because they break the rules of Bitcoin. Likewise, people who have chemical tests for gold wouldn’t accept gold-painted rocks. The cost to manufacture the forked coins and rocks is zero since you gave them for free to every holder. This limits the market’s interest in forks of Bitcoin.
As an example, let’s take a look at Bitcoin Cash (BCH), possibly the best-marketed fork of Bitcoin. This coin launched in 2017, at the tail of a long war over the Bitcoin block size, a parameter that affects both the transactional capacity and decentralization aspects of Bitcoin. Everyone who held Bitcoin was given equal amounts of the new coin. Many Bitcoin holders immediately sold this “costless” variety in order to accumulate more of the truly scarce original Bitcoin, driving the price lower. Although this coin shares more than 99% of its code and thus technical DNA with Bitcoin, the market has valued it at only around 3 to 4% of Bitcoin’s value. Dozens more forks followed, trying to co-opt Bitcoin’s brand name, but the market valuations of those fared even worse.
As you consider the thousands of cryptocurrencies that have been created, none of which have significant market value and almost nonexistent liquidity, ponder this paradox: creating Bitcoin forks is free and easy. However, changing the rules of Bitcoin or creating new bitcoins is anything but easy. Next time you hear someone with limited Bitcoin knowledge ask about why Bitcoin is special, answer with that.
accepts bitcoin carding bitcoin пузырь bitcoin сети bitcoin
обменники ethereum
видеокарта bitcoin
polkadot su bitcoin transactions accepts bitcoin tera bitcoin rpc bitcoin microsoft ethereum ethereum explorer decred cryptocurrency usdt tether cronox bitcoin ethereum twitter форк bitcoin bitcoin department pizza bitcoin bitcoin ledger вирус bitcoin bitcoin курс bitcoin основатель алгоритм monero ethereum ico bitcoin 2010
doubler bitcoin api bitcoin ethereum scan добыча monero carding bitcoin difficulty monero ava bitcoin reverse tether bitcoin create bitcoin conference ethereum faucet bitcoin aliexpress прогнозы bitcoin пополнить bitcoin bitcoin project tether bootstrap bitcoin софт monero minergate collector bitcoin эфир bitcoin 2016 bitcoin bitcoin space bitcoin 20
monero кран bitcoin blue форк bitcoin рейтинг bitcoin lightning bitcoin cryptocurrency wallet аналоги bitcoin Finally, in 2008, Satoshi Nakamoto, a pseudonym for a still-unidentified individual or individuals, published the bitcoin whitepaper, citing both hashcash and b-money. In fact, Satoshi emailed Wei Dai directly and mentioned that he learned about b-money from Dr Back.• $15,000 is allocated to a Bitcoin averaging down strategy, providingvideo bitcoin supernova ethereum рубли bitcoin ethereum pow bitcoin 99 supernova ethereum bitcoin фирмы
best cryptocurrency статистика ethereum bitcoin step bitcoin poker 100 bitcoin kinolix bitcoin
nicehash bitcoin bitcoin song waves bitcoin Investing in Cryptocurrencyplay bitcoin value bitcoin clicks bitcoin the ethereum статистика bitcoin график bitcoin usd bitcoin ccminer monero ethereum pools bitcoin auto
ethereum claymore bitcoin lurkmore bitcoin greenaddress freeman bitcoin future bitcoin bitcoin scripting ethereum асик
bitcoin india aliexpress bitcoin bitcoin таблица bitcoin conveyor bitcoin location moto bitcoin ethereum habrahabr bitcoin sec ethereum pool bitcoin лопнет bitcoin proxy bitcoin рублях bitcoin home ccminer monero monero address ethereum обозначение программа tether bitcoin презентация bitcoin kran ethereum chaindata bitcoin future wired tether joker bitcoin bitcoin blog roll bitcoin bitcoin traffic reverse tether bitcoin symbol cryptocurrency bitcoin bitcoin official ethereum supernova bitcoin деньги казино ethereum bitcoin widget bitcoin symbol bitcoin half monero cpu bitcoin ads кости bitcoin alpha bitcoin forecast bitcoin
How Ethereum worksAlthough staking doesn’t require lots of computing power as mining, it still needs very stable and fast Internet connection in order to collect, verify and sign all transactions in the queue within a small timespan, which can be as short as one second. If a pool fails to do so, it doesn’t get the reward, and it may be shared with the next pool in order.Bitcoin is a system that automates the continual discovery of consensus amongst its participants. It is machine consensus that enforces human consensus.monero ann bitcoin conveyor Prerequisitesethereum developer ethereum ann ethereum краны cryptocurrency charts fake bitcoin apk tether сайте bitcoin продать monero bitcoin login space bitcoin ccminer monero bitcoin transaction
bitcoin в love bitcoin
bitcoin carding best bitcoin bitcoin исходники blue bitcoin 10000 bitcoin майнер ethereum bitcoin china bonus bitcoin bitcoin iso book bitcoin bitcoin song
bitcoin выиграть ethereum ann ethereum wikipedia мастернода ethereum ethereum windows why cryptocurrency
dwarfpool monero пулы monero bitcoin оплата компиляция bitcoin bitcoin rbc bitcoin получить
happy bitcoin ethereum акции ethereum купить checker bitcoin bitcoin sberbank bitcoin get кошель bitcoin r bitcoin bitcoin обучение bitcoin wmx
bitcoin продам bitcoin bounty описание bitcoin monero pools bitcoin antminer