Dear Friends,
If you heard about Bitcoin....or invest in Bitcoin then you need to know what the impact of bitcoin Hard Fork on your bitcoin
Why Bitcoin Hard Fork?
Bitcoin is in crisis now. Something needs to be done but there is no common agreement to resolve the crisis.
Whats is the problem, you may ask.?
Bitcoin is too popular but it cannot handle the volume and weight of transaction going through the network.
"Bitcoin transactions are processed in so-called "blocks" that involve complex cryptography to verify and set the transactions. But as the currency grows and more and more transactions take place, the one megabyte size limit on blocks that is built into the system is becoming an issue, causing delays in processing transactions. A purchase might take hours to confirm, making it unwieldy for real-world use."
There are two options to resolve.
- Bitcoin Unlimited ( BU)
- Segregrated Witness(SegWit)
Splitting is necessary as they cannot co exist together.
Bitcoin Unlimited
Pros:
Miners and Nodes can vote on increasing block size
Miners can control bitcoin network
Miners can control effectively setting transaction fees
Cons
Controls by miners and nodes on bitcoin networks
miners may set higher transaction fees once 21 billion Bitcoin has being mined.
30% exchanges supported
Segregated Witness
Pros
more decentralised
double the transaction per second capacity
digital currency as no control from central bank
80% supported by exchanges
Cons
viewed as temporary solution
only double the transaction.
Overall Impact:
- 2 bitcoins exists ..BTC ot BTU
- Price may reduce at hard fork then one will be dominant and other coin will become another alternative coin
- Confusion about bitcoin.. which one will survive in future is still unknown.
- Fork may happens as early as 1st August
How to protect yourself!!
- Remove all your bitcoins from exchanges and online Wallets into offline wallets
- Keep your bitcoin in coolbitx offline Wallet -- if you do not have order for one.
- If you do not have an offline wallet or too late to order one then download mobile wallet
- Do not use windows based wallets as they are easily hacked and trojan horsed OS.
- Android and IOS are more secured. Go for Mycelium, Aitbitx and Jaxx
- Download the mobile wallet and remember to create backup. if you lose your smartphone, you can still recover your bitcoin.
- Do it as soon as possible
If you like this tips , please upvote and resteemed and share with your friends.
Thank you.
Enjoy yourself.