Bitcoin Fork: What Is It?

Bitcoin Fork: What Is It?

The Bitcoin civil war has reportedly endangered the future of the popular cryptocurrency. Miners and developers have battled over the future of Bitcoi

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The Bitcoin civil war has reportedly endangered the future of the popular cryptocurrency. Miners and developers have battled over the future of Bitcoin, resulting in a possible “fork” this Tuesday.

What is a Bitcoin fork?

“A ‘fork’ is a change to the software of the digital currency that creates two separate versions of the blockchain with a shared history.”, as Coinbase explained on their website.

“Forks can be temporary, lasting for a few minutes, or can be a permanent split in the network creating two separate versions of the blockchain. When this happens, two different digital currencies are also created.”, as Coinbase elaborated on the subject.

Why are forks happening?

When a change is being proposed, users have to show their support for the new version and upgrade, as Coinbase pointed out.

“In order for these changes to get approved many people need to agree, just as changes to cellphone networks require many phone companies to agree.”, they added.

It is not the first time a cryptocurrency sees a fork. Bitcoin`s rival Ethereum experienced a fork in 2016. In this way, the Ethereum we all know was created, as Business Insider (businessinsider.com) reported.

Will the fork affect Bitcoin`s price?

We can only guess at this point. But the bets on the sports gambling site Bodog are that the Bitcoin price will fall after the fork, according to company spokesperson Ed Pownell who spoke to Business Insider:

“310 people think the price will dip below $2,000 per coin.”, as he said.

“The rest think it will be over $2,500.”, as he added.

No one on Bodog believes that the price will be in the middle range between $2000 and $2500, according to the publication.

“No matter what happens on August 1, this date will be considered an important event preceded and followed by increasing levels of volatility in prices of Bitcoin and potentially its peers (Litecoin and Ethereum).”, as Stefan Qin and Justin Ledbetter of Virgil Capital told Business Insider.

Scalability is an issue, and short-term risks of resolving it are much smaller than the long-term risks of not doing anything about it.”, as they elaborated in the interview with the online media.

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