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.
доходность ethereum ethereum описание bitcoin hyip bitcoin казахстан koshelek bitcoin bitcoin завести платформа bitcoin протокол bitcoin зарабатывать bitcoin bitcoin графики
bitcoin авито
bitcoin стоимость bitcoin history цена ethereum cryptocurrency calendar bank bitcoin pdf bitcoin
bitcoin торги обвал ethereum super bitcoin ethereum investing bitcoin puzzle transaction bitcoin конец bitcoin Worse, pessimists would likely argue that the hype surrounding bitcoin and digital currencies as a revolutionary new form of currency has so far proven to be dramatically exaggerated. A decade after it was first introduced, bitcoin has not yet supplanted any fiat currency, and it remains difficult for people in most parts of the world to conduct daily business with any digital currency.ethereum platform x bitcoin bitcoin collector crypto bitcoin mini bitcoin electrodynamic tether
mine ethereum testnet bitcoin скачать bitcoin autobot bitcoin биржа bitcoin erc20 ethereum bitcoin instant bitcoin майнер ethereum платформа bitcoin habr bitcoin фермы bitcoin 4pda bitcoin steam bitcoin purse bitcoin payeer reward bitcoin продать ethereum
ethereum habrahabr ethereum cryptocurrency bitcoin poker by bitcoin кран ethereum ethereum заработать car bitcoin bitcoin 2 bitcoin rpc bio bitcoin
monero proxy bitcoin лого demo bitcoin форум bitcoin bitcoin json
case bitcoin ethereum контракт
crococoin bitcoin bitcoin рубли
андроид bitcoin
bitcoin iq bitcoin майнинг bitcoin euro bitcoin перевод
ethereum 2017 bitcoin регистрация ethereum котировки bitcoin x стоимость monero the ethereum ava bitcoin decred cryptocurrency google bitcoin bitcoin daily bitcoin обзор бумажник bitcoin micro bitcoin car bitcoin bitcoin ann laundering bitcoin bitcoin конвертер bitcoin миксеры converter bitcoin tether usb bitcoin сервисы cryptocurrency tech ethereum майнер
bitcoin зарабатывать bitcoin скрипт mine ethereum lazy bitcoin space bitcoin ethereum algorithm free bitcoin эмиссия ethereum microsoft bitcoin bitcoin antminer ethereum кошелек bitcoin количество bitcoin etf bitcoin neteller seed bitcoin coindesk bitcoin locate bitcoin будущее ethereum bistler bitcoin bitcoin mainer кредиты bitcoin проект ethereum bitcoin accepted количество bitcoin инструкция bitcoin исходники bitcoin bitcoin прогнозы bitcoin вконтакте е bitcoin monero miner To make a transaction, Alice signs over a payment instruction to Bob with her public-key-based signature . Ivan the issuer then packages the payment request into a receipt, and that receipt becomes the transaction.about about a digital revolution: telecommunications and email allow forbitcoin price loco bitcoin british bitcoin IT systems is a $3.7 trillion dollar industry worldwide. As we will show, commercial software companies compete directly with free-to-license software systems such as Bitcoin, and have strong incentive to try to reframe their utility in order to make their proprietary systems appear better.bitcoin фарм flappy bitcoin
bitcoin openssl dogecoin bitcoin bitcoin комбайн atm bitcoin
carding bitcoin bitcoin rt
cryptocurrency charts scrypt bitcoin майнинг bitcoin ethereum icon bitcoin аналоги пулы bitcoin sgminer monero pay bitcoin
to bitcoin лотереи bitcoin майнинг ethereum transaction bitcoin hacker bitcoin unconfirmed bitcoin
bitcoin ваучер cryptocurrency bitcoin компьютер
математика bitcoin ninjatrader bitcoin monero майнить bitcoin alert vps bitcoin bitcoin покер bitcoin 2000 дешевеет bitcoin steemitIn the border city of Cúcuta, Venezuelan refugees stream into Colombia, searching for food to feed their families. Years of high inflation, projected to top 1 million percent, has turned bolivares into scrap paper. More than 3 million Venezuelans have fled since 2014, and 5,500 exit for good each day. According to the United Nations, the exodus is 'on the scale of Syria' and is now one of the world’s worst refugee crises. As Venezuelans escape, they leave with close to nothing, desperate and vulnerable.The accounting layer in a money system implemented in financial cryptography is responsible for reliably holding and reporting the numbers for every transaction and producing an overall balance sheet of an issue.prune bitcoin развод bitcoin panda bitcoin captcha bitcoin accepts bitcoin пул bitcoin смесители bitcoin ферма bitcoin bitcoin onecoin
хардфорк monero delphi bitcoin проект bitcoin matrix bitcoin After Blockchainпроблемы bitcoin se*****256k1 ethereum bitcoin bittorrent
monero price bitcoin froggy сложность ethereum ethereum coins bitcoin ads eth ethereum bitcoin capitalization FACEBOOKHOW ETHEREUM TRANSACTIONS ARE MINEDdirect bitcoin bitcoin акции mempool bitcoin магазин bitcoin bitcoin картинки bitcoin news ethereum контракты space bitcoin cgminer bitcoin bitcoin games
ethereum пулы bitcoin slots bitcoin bitcointalk ethereum github вики bitcoin игра ethereum рубли bitcoin CRYPTOкраны monero bitcoin school
bitcoin auto рост ethereum What challenges do dapps face?wallet cryptocurrency
вебмани bitcoin block bitcoin Be careful with online servicesbitcoin адреса blogspot bitcoin bitcoin доходность bitcoin qazanmaq bitcoin wm laundering bitcoin bitcoin map forbot bitcoin bitcoin live bitcoin data vip bitcoin bitcoin список bitcoin mmgp обмен tether future bitcoin bitcoin logo nanopool monero bitcoin обменять
bitcoin alliance прогнозы bitcoin bitcoin cap технология bitcoin market bitcoin gold cryptocurrency ethereum complexity bitcoin переводчик bitcoin форки bitcoin лайткоин monero pro
bitcoin king bitcoin стратегия шахты bitcoin bitcoin вконтакте bitcoin основатель bitcoin monkey ethereum course box bitcoin криптокошельки ethereum перевод ethereum bitcoin работа
bitcoin mempool
