One of the most mentioned things these days in the forums of Bitcoin and in general in forums of cryptocurrency is the 'first of August'. However, not everyone knows what this day means for the world of virtual currencies and why it is so important.
The most apocalyptic are announcing that this day will be super-horrifying and that we have to take all our money out of this coin (and even others). Otherwise, we will lose all (or rather, a large part) of our money.
Diffusion
But nothing further from reality, because what happens that day (which we will see) does not have to negatively affect the currency. What we do know for sure is that this 'apocalypse' is impacting negatively on both the BTC and other currencies.
That is, those of us who have BTC are being harmed by the apocalyptic ones that announce to hype and saucer to remove all money urgently. Currently, daily falls of 30% are seen in many of the currencies. In part this downward movement is due to the stampede that many users are striking when withdrawing their invested funds.
cryptocurrency
What will happen on August 1st?
On August 1, at precisely 12:20 UTC, they will split off from bitcoin, creating a new cryptocurrency called Bitcoin Cash.
What happens on the first day of August is that the coin is going to fork. But it is not a 'soft fork', but it is a 'hard fork'.
Bitcoin
Difference between soft and hard bifurcation
A bifurcation, for those who do not know it, is an update of the 'rules' of Blockchain, the technology behind cryptocurrency. The difference between these terms is that the first one (soft fork) is an update that does not affect the operation; A hard fork, on the other hand, involves accepting the changes we want or not if we want to continue with official development.
We are faced with a period of uncertainty and with great volatility.
That is, we can continue with the previous rules, but would not be considered as the original currency. An example of a hard bifurcation is what Ethereum suffered in 2016: the old rules went on to form Ethereum Classic (ETC) and the new ones remained Ethereum (ETH) per se.
division
Two coins, two roads
Diffusion
One can be more welcome than another and therefore one could collapse and the other multiply its value. But that can not be predicted. It is the union of the decisions of the millions of people who use the coin which causes one value to rise and the other to fall.
That is why it is said that it is better to sell all the Bitcoins before August 1 and either buy other cryptocurrency or wait until this date passes to put the capital into the new currency or the BTC. Therefore, the BTC is decreasing and at the same time other currencies are undergoing changes. There are a lot of people shifting coins and the other fleeing as far as possible from these markets until the thing calms down.
Although, Developer Calin Culianu, who's contributing code to an implementation of Bitcoin Cash concluded on an optimistic note:
”My secret gut feeling is Bitcoin Cash may surprise all of us. It is not entirely impossible that it will be the de-facto bitcoin after a few months. The much roomier 8 MB block space is attractive."
What happens if a hard fork is made
cryptocurrency
Making a hard bifurcation implies that if the entire community does not support the movement, there will be a long period of instability and uncertainty. That is why it is a very risky move.
The explanation for why it is not known which currency will be best received is because the average community is divided in that the present problem (Bitcoin's limited ability to carry out many transactions at the same time) must be solved by reducing the size of transactions; While other people think that it must be solved by increasing the number of transactions per block.
The crisis of August 1 in figures
There have been things so unusual as Litecoin has surpassed in volume of transactions to the own Bitcoin. Specific, This alternative to the BTC reached a total volume of more than 1000 million dollars.
Bitcoin is divided for August 1, 2017
On the other hand, this same currency, the Litecoin, has been one of the most resistant to the multiple falls of all the cryptocurrency. As we see in the image below, the LTC dropped yesterday only almost 9 points, while other currencies like BitShares or Stratis fell by around 30 and 40%.
For the moment, as we say, we do not know what is going to happen with Bitcoin, although, as we see, quasi-apocalyptic thinking is filling (very) negative.
It may be very convoluted, but those who have begun the apocalyptic movement may be benefiting economically from the free fall that the cryptocurrency are suffering anyways.
Considering all above statements, what should we do in next few days? Some people are thinking it an opportunity to grab!!