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Bitcoin’s hard fork

Bitcoin’s users who owned it before 1st August 2017, already had an opportunity to witness a hard fork of this crypto. Exactly on 1st of August there was a split and bitcoin core and bitcoin cash was developed. ANother hard fork is planned to be performed on 25th October 2017. There will be a new bitcoin – bitcoin gold (BTG), and in November developers plan to have another, probably the last this year fork.

What does a fork mean?

All of the bitcoin transactions till the fork are being copied and they will be present in the new bitcoin. It mean that if you had e.g. 5 bitcoins on your wallet before the split, you’ll get 5 bitcoin gold. After the fork the two cryptocurrencies will function separately.

 

Why there will be a hard fork?

Earlier, where there was a bitcoin and bitcoin cash fork, there was a strife of a kind. On the one hand there were developers who wanted bitcoin to be as before, in order to prevent hackers attacks. In the other hand, there were people who wanted to mine it more efficently and make faster transactions. At the beginning it was supossed to be just an update but in the end there was a hard fork. This time, LightningASIC  company from Hong Kong, which CEO is Jack Liao intended to modify the algorithm in order to mine bitcoin on GPU.

 

What to do and how to make money on it?

Of course as in case of the last fork you may earn some money. All you have to do is to transfer your bitcoins to your wallet or an exchange that supports bitcoin gold. Bittrex exchange has not made any official announcement saying that you’ll get free BTG while having BTC there.

 

In the face of the upcoming fork it would be reasonable to (of course this is my personal opinion) exchange all your cryptos for bitcoin and transform it to your wallet before the fork. Secondly, because of safety reasons it would be better to hold transactions for 24 hours before and after the fork.

I personally will keep my bitcoins on the Bittrex exchange.

 


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