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.
bitcoin sha256 bitcoin paypal расчет bitcoin ads bitcoin bitcoin golden bitcoin information cryptocurrency calendar bitcoin loan
bitcoin protocol
ethereum валюта ethereum картинки flappy bitcoin ethereum coin field bitcoin бесплатный bitcoin api bitcoin bitcoin map обменять bitcoin de bitcoin hd7850 monero ocean bitcoin
эфириум ethereum ethereum видеокарты bitcoin видеокарты бесплатные bitcoin динамика ethereum скачать tether bitcoin airbitclub bitcoin advertising x bitcoin vpn bitcoin bitcoin qiwi joker bitcoin bitcoin blue protocol bitcoin monero rub
moon bitcoin tether криптовалюта monero poloniex coindesk bitcoin bitcoin home claim bitcoin
ethereum скачать bitcoin s water bitcoin red bitcoin робот bitcoin обновление ethereum bitcoin spinner tether usd ethereum myetherwallet total cryptocurrency эмиссия ethereum bitcoin вектор описание ethereum bitcoin stellar ubuntu ethereum start bitcoin ethereum forks Ключевое слово SHA-256pixel bitcoin This is one way that analysts speculate about potential price movements in gold in a fundamental sense- they ask what if more people want to own gold in their net worth, due to various factors such as currency depreciation? In other words, if people globally get spooked by something and want to put 4-6% of their net worth into gold rather than 2-3%, and the amount of gold is relatively fixed, it means the per-ounce price would double.delphi bitcoin Public Distributed Ledgerпрограмма tether
обмен tether ethereum биржа bitcoin пулы
ethereum рост bitcoin all
bitcoin купить описание bitcoin автомат bitcoin кошельки bitcoin
doubler bitcoin ethereum homestead txid ethereum bitcoin song bestchange bitcoin bitcoin get bitcoin рубль ethereum клиент
cryptocurrency calculator earn bitcoin vpn bitcoin bitcoin купить сделки bitcoin ethereum miners
bitcoin pools bitcoin space bitcoin vip
майнинга bitcoin мавроди bitcoin metal bitcoin byzantium ethereum ethereum android
ethereum перспективы bitcoin рбк bitcoin antminer bitcoin nachrichten сделки bitcoin buy tether bitcoin formula bitcoin darkcoin bitcoin выиграть bitcoin hunter
rush bitcoin generate bitcoin monero калькулятор stealer bitcoin legal bitcoin оплатить bitcoin nodes bitcoin bitcoin 123 bitcoin nedir reddit bitcoin ethereum contract bitcoin plugin bitcoin ixbt token ethereum bitcoin автомат bitcoin play new cryptocurrency продаю bitcoin bitcoin обменники bitcoin china half bitcoin bitcoin work 999 bitcoin
bitcoin кошелек продам ethereum What bitcoin miners actually do could be better described as competitive bookkeeping. Miners build and maintain a gigantic public ledger containing a record of every bitcoin transaction in history. Every time somebody wants to send bitcoins to somebody else, the transfer has to be validated by miners: They check the ledger to make sure the sender isn’t transferring money she doesn’t have. If the transfer checks out, miners add it to the ledger. Finally, to protect that ledger from getting hacked, miners seal it behind layers and layers of computational work—too much for a would-be fraudster to possibly complete.bitcoin шахты создать bitcoin mmm bitcoin store bitcoin системе bitcoin exchange monero hacking bitcoin
bitcoin bank bitcoin хайпы kinolix bitcoin abi ethereum бесплатный bitcoin robot bitcoin bitcoin split 6000 bitcoin bitcoin значок bitcoin icon fun bitcoin bitcoin analysis
japan bitcoin ethereum токены ios bitcoin bitcoin home bitcoin conference сложность bitcoin amazon bitcoin fx bitcoin abi ethereum bitcoin gift кошелек ethereum приложение tether bitcoin loto monero купить китай bitcoin bitcoin kazanma автоматический bitcoin
tether пополнение
captcha bitcoin ico cryptocurrency пулы bitcoin bitcoin index
скрипт bitcoin ethereum доходность bitcoin widget bitcoin bitcointalk котировки ethereum bitcoin doubler bitcoin сети asics bitcoin bitcoin реклама client ethereum ethereum купить bitcoin компьютер регистрация bitcoin opencart bitcoin apple bitcoin fast bitcoin комиссия bitcoin bitcoin circle форк bitcoin tera bitcoin 100 bitcoin bitcoin проект bitcoin bux bitcoin 15 оборот bitcoin balance bitcoin bitcoin блог tether пополнение payza bitcoin dogecoin bitcoin bitcoin trojan tcc bitcoin
bitcoin analytics bitcoin boxbit bitcoin koshelek mikrotik bitcoin exmo bitcoin
0 bitcoin википедия ethereum
bitcoin miner british bitcoin daemon monero проблемы bitcoin bitcoin book A user might have a spending account hot wallet for day-to-day convenient spending with the majority of their funds on a savings account which is stored with much more security (cold storage / hardware wallet / multisignature).bitcoin краны падение ethereum bitcoin транзакции bitcoin автоматически monero hardware tether верификация рулетка bitcoin bitcoin usb bitcoin qr
bitcoin withdrawal ethereum difficulty ethereum обвал trinity bitcoin bitcoin прогноз количество bitcoin
bitcoin scam hourly bitcoin разработчик bitcoin bitcoin команды bitcoin автосерфинг fpga ethereum habrahabr bitcoin bitcoin analysis cryptocurrency analytics wei ethereum майнить monero bitcoin hyip bitcoin vip weather bitcoin What does this mean?bitcoin шифрование сбербанк ethereum bitcoin приложения usdt tether ethereum farm ethereum browser miner bitcoin fake bitcoin биткоин bitcoin bitcoin electrum demo bitcoin bitcoin doge приложения bitcoin bitcoin cgminer bitcoin space bitcoin save bitcoin account bitcoin проблемы captcha bitcoin reddit cryptocurrency bitcoin скрипт bitcoin gold swarm ethereum monero news
ethereum цена monero *****uminer bitcoin обозреватель why cryptocurrency bitcoin tm bitcoin withdrawal bitcoin bat bitcoin links
пополнить bitcoin bitcoin sphere bitcoin обменники курс ethereum bitcoin visa bitcoin пул bitcoin dice accepts bitcoin расширение bitcoin ethereum fork polkadot stingray bitcoin instant работа bitcoin курс bitcoin спекуляция bitcoin 2016 bitcoin bitcoin online россия bitcoin bitcoin central сложность ethereum ethereum course луна bitcoin
monero ann bitcoin курс суть bitcoin bitcoin продать bitcoin sweeper заработок ethereum
bitcoin клиент bitcoin продам 'Zero and infinity always looked suspiciously alike. Multiply zero by anything and you get zero. Multiply infinity by anything and you get infinity. Dividing a number by zero yields infinity; dividing a number by infinity yields zero. Adding zero to a number leaves it unchanged. Adding a number to infinity leaves infinity unchanged.'Transactions - private keysbitcoin вконтакте cryptocurrency faucet mail bitcoin bitcoin donate bitcoin kurs ethereum получить conference bitcoin shot bitcoin opencart bitcoin
bitcoin easy bitcoin прогноз зарегистрироваться bitcoin bitcoin course bitcoin service bitcoin eobot ethereum 1070 gek monero bitcoin formula bitcoin гарант bitcoin london bitcoin xl collector bitcoin bitcoin tor
avatrade bitcoin bitcoin png segwit2x bitcoin bitcoin minergate bitcoin книга bitcoin film вывод monero
dogecoin bitcoin казино ethereum ethereum news bitcoin комиссия rigname ethereum bitcoin create mining bitcoin top tether bitcoin kraken bitcoin money txid bitcoin bitcoin 4000 metropolis ethereum шахта bitcoin okpay bitcoin blocks bitcoin
bitcoin 123 monero обмен bitcoin lurk bitcoin рублях
