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.
Keep your software up to dateethereum бутерин bitcoin world bitcoin cloud claymore monero x bitcoin lamborghini bitcoin казино ethereum bitcoin создатель boxbit bitcoin ethereum platform bitcoin plugin bitcoin knots atm bitcoin bitcoin coinmarketcap 20 bitcoin bitcoin purchase сбор bitcoin сервера bitcoin
bitcoin мастернода
converter bitcoin токен bitcoin bitcoin даром lamborghini bitcoin coingecko ethereum bitcoin вектор цены bitcoin
bitcoin monero bitcoin motherboard bitcoin скачать
bitcoin armory ethereum бутерин купить ethereum
why cryptocurrency ethereum доллар bitcoin прогноз bitcoin easy bitcoin bcc криптовалюту monero casascius bitcoin wired tether cms bitcoin bitcoin like bitcoin развод ethereum vk
количество bitcoin команды bitcoin кредиты bitcoin casino bitcoin bitcoin эмиссия ethereum programming In August 2017, some miners and developers initiated what is known as a hard fork, effectively creating a new currency: BCH. BCH has its own blockchain and specifications, including one very important distinction from bitcoin. BCH has implemented an increased block size of 8 MB to accelerate the verification process, with an adjustable level of difficulty to ensure the chain’s survival and transaction verification speed, regardless of the number of miners supporting it.6bitcoin aliexpress bitcoin государство мерчант bitcoin capitalization cryptocurrency
bitcoin talk bitcoin cny bitcoin клиент bitcoin fox bitcoin bloomberg bitcoin запрет bitcoin курс bitcoin usd bitcoin реклама
ethereum асик bitcoin фарминг удвоить bitcoin заработок ethereum
bitcoin nachrichten fire bitcoin bitcoin аккаунт bitcoin компьютер bitcoin icons bitcoin plus bitcoin network генераторы bitcoin His goal was to invent something; many people failed to create before digital cash.metatrader bitcoin bitcoin trade bitcoin girls bitcoin котировки
bitcoin neteller bitcoin brokers mist ethereum second bitcoin верификация tether usb tether value bitcoin bitcoin alien продам ethereum bitcoin котировки ethereum обменники валюты bitcoin вложения bitcoin bitcoin халява 6. Mobile Payments✗ Mining uses lots of electricity;faucet cryptocurrency 10000 bitcoin bitcoin кошелька автоматический bitcoin bitcoin rigs gek monero bitcoin node Finally, I can get down to the real topic of this article – Bitcoin mining hardware. I’ve looked at Bitcoin mining rigs from some of the biggest and best-known manufacturers on the planet to create this list.golden bitcoin Trade Litecoinприват24 bitcoin bitcoin eu bitcoin миксер
simple bitcoin bitcoin metatrader новости monero make bitcoin иконка bitcoin demo bitcoin ethereum myetherwallet bitcoin life
best bitcoin tether майнинг wikipedia cryptocurrency tether iphone 1 ethereum moneybox bitcoin график monero bitcoin buying super bitcoin difficulty monero bitcoin bounty я bitcoin bitcoin okpay
zebra bitcoin генератор bitcoin bitcoin кошелька
bitcoin p2p cgminer ethereum ad bitcoin moneybox bitcoin raiden ethereum токен bitcoin bitcoin nachrichten Recall from Bitcoin Can’t Be Copied, if an asset’s primary (if not sole) utility is the exchange for other goods and services, and if it does not have a claim on the income stream of a productive asset (such as a stock or bond), it must compete as a form of money and will only store value if it possesses credible monetary properties. Bitcoin is a bearer asset, and it has no utility other than the exchange for other goods or services. It also has no claim on the income stream of a productive asset. As such, bitcoin is only valuable as a form of money and it only holds value because it has credible monetary properties (read The Bitcoin Standard, chapter 1). By definition, this is true of any blockchain; all any blockchain can offer in return for security is a monetary asset native to the network, without any enforceable claims outside the network, which is why a blockchain can only be useful in connection to the application of money.security bitcoin вебмани bitcoin bitcoin swiss bitcoin utopia пулы monero 1080 ethereum key bitcoin сборщик bitcoin
bitcoin eobot attack bitcoin monero usd bitcoin nvidia ebay bitcoin best bitcoin convert bitcoin bitcoin блоки ethereum бесплатно кран bitcoin up bitcoin mooning bitcoin iso bitcoin mine monero bitcoin blockchain bitcoin space ethereum стоимость bitcoin gif ethereum twitter
bitcoin сбербанк okpay bitcoin bitcoin трейдинг
bitcoin vk
bitcoin background иконка bitcoin bitcoin nachrichten bitcoin падает bitcoin комбайн ethereum описание bitcoin token monero ico bitcoin суть mainer bitcoin Metacoins - the idea behind a metacoin is to have a protocol that lives on top of Bitcoin, using Bitcoin transactions to store metacoin transactions but having a different state transition function, APPLY'. Because the metacoin protocol cannot prevent invalid metacoin transactions from appearing in the Bitcoin blockchain, a rule is added that if APPLY'(S,TX) returns an error, the protocol defaults to APPLY'(S,TX) = S. This provides an easy mechanism for creating an arbitrary cryptocurrency protocol, potentially with advanced features that cannot be implemented inside of Bitcoin itself, but with a very low development cost since the complexities of mining and networking are already handled by the Bitcoin protocol. Metacoins have been used to implement some classes of financial contracts, name registration and decentralized exchange.tether js bitcoin bow bitcoin кликер bitcoin pdf bitcoin mail ninjatrader bitcoin bitcoin express fasterclick bitcoin stock bitcoin bitcoin ann faucet bitcoin kupit bitcoin bitcoin курс bitcoin порт
bitcoin описание падение ethereum bitcoin client bitcoin nonce
bitcoin forum coinder bitcoin chaindata ethereum exchanges bitcoin bitcoin чат monero алгоритм bitcoin tx exchange ethereum ethereum course деньги bitcoin mikrotik bitcoin
sec bitcoin пулы ethereum decred ethereum raiden ethereum ethereum stats рост ethereum bitcoin вложить регистрация bitcoin bitcoin linux bitcoin nachrichten maining bitcoin
bitcoin котировки bitcoin gambling bitcoin loto tether usb cryptocurrency charts torrent bitcoin bitcoin qiwi avatrade bitcoin cryptocurrency mining картинка bitcoin ethereum ethereum price пулы bitcoin
trust bitcoin bitcoin flapper monero pro ethereum bitcoin
bitcoin казахстан raiden ethereum tether приложение bitcoin видеокарта bitcoin loan bitcoin up dog bitcoin gambling bitcoin usb bitcoin монет bitcoin bitcoin betting фьючерсы bitcoin
iso bitcoin wifi tether bitcoin блок login bitcoin bitcoin novosti bitcoin nvidia
bitcoin дешевеет ethereum пул боты bitcoin fpga ethereum
bitcoin accepted bitcoin flapper ethereum scan monero криптовалюта ethereum poloniex server bitcoin bitcoin usd dogecoin bitcoin bitcoin adress bitcoin redex tether ico bitcoin it bitcoin ishlash обмен bitcoin bitcoin txid bitcoin расшифровка bitcoin bio 1 ethereum bitcoin auto
iota cryptocurrency майнеры bitcoin bitcoin valet source bitcoin goldmine bitcoin ethereum node ethereum хешрейт bitcoin комиссия prune bitcoin alpha bitcoin bitcoin вывести hash bitcoin ethereum mine bitcoin pools bitcoin neteller china cryptocurrency bitcoin tor bitcoin стратегия bitcoin evolution bitcoin alliance ethereum php торги bitcoin bitcoin reindex кран ethereum trade cryptocurrency bitcoin development
часы bitcoin алгоритм ethereum разделение ethereum ethereum вики алгоритмы ethereum weekend bitcoin 500000 bitcoin bitcoin продать redex bitcoin ethereum poloniex billionaire bitcoin x bitcoin ethereum краны ethereum wikipedia space bitcoin ethereum перевод bitcoin grafik компьютер bitcoin bitcoin аналоги bitcoin trading bitcoin betting разработчик bitcoin серфинг bitcoin auto bitcoin tether provisioning bcc bitcoin кран ethereum бесплатные bitcoin алгоритм bitcoin bitcoin abc bitcoin покупка bitcoin настройка bitcoin background ethereum заработать ethereum ethash plasma ethereum
