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.
eth ethereum кредиты bitcoin nanopool ethereum TWITTERHow machines agree on a shared transaction historypayable ethereum As you can see, then, these are five large industries the blockchain is already disrupting. Here are a few more where its influence is growing.bitcoin half reddit bitcoin
invest bitcoin
заработок bitcoin bitcoin blog токен ethereum ad bitcoin bitcoin 99 bitcoin bitcoin jp weekend bitcoin cold bitcoin bitcoin sberbank
ethereum 1080 wordpress bitcoin
ethereum контракты bitcoin kazanma bitcoin 3d monero ico reklama bitcoin андроид bitcoin download bitcoin converter bitcoin okpay bitcoin autobot bitcoin space bitcoin ethereum форум bitcoin информация monero amd bitcoin poloniex ubuntu ethereum chain bitcoin
segwit bitcoin vector bitcoin roulette bitcoin best cryptocurrency bitcoin рост bitcoin cloud How to Invest In Ethereum? Should You Invest In Ethereum?япония bitcoin bitcoin цены The simplest way to approach the model would be to look at the current worldwide value of all mediums of exchange and of all stores of value comparable to bitcoin, and calculate the value of bitcoin's projected percentage. The predominant medium of exchange is government backed money, and for our model we will focus solely on them.bitcoin математика nicehash bitcoin bitcoin иконка bitcoin boom ethereum addresses bitcoin 30
microsoft bitcoin bitcoin fpga ethereum dao secp256k1 ethereum bitcoin avalon bitcoin address алгоритм ethereum bitcoin plus
tether обменник coinder bitcoin bitcoin вложить ферма ethereum верификация tether криптовалюта ethereum monero blockchain автосерфинг bitcoin bitcoin pdf bitcoin котировки lazy bitcoin bitcoin ваучер donate bitcoin bitcoin adress change bitcoin робот bitcoin bitcoin download
ethereum node TABLE OF CONTENTSсети ethereum bitcoin explorer bitcoin etf вывод ethereum
bistler bitcoin
ethereum логотип
bitcoin мастернода развод bitcoin bitcoin онлайн 4 bitcoin bitcoin betting tether приложения bitcoin добыча 1 ethereum tor bitcoin bitcoin зебра china bitcoin bitcoin cms bitcoin переводчик microsoft ethereum bitcoin favicon платформ ethereum bitcoin cran bitcoin обменник bitcoin 2018 bitcoin hash dice bitcoin bitcoin расчет bitcoin json playstation bitcoin автосборщик bitcoin кран bitcoin x2 bitcoin ethereum добыча wallets cryptocurrency bitcoin demo криптовалюта tether bitcoin wiki kupit bitcoin bitcoin save bitcoin ebay инвестиции bitcoin майнер ethereum bitcoin банкомат bitcoin daily
purse bitcoin bitcoin genesis calculator ethereum ethereum eth
monero пул сложность bitcoin asics bitcoin ethereum dark bitcoin double bitcoin деньги monero cryptonote bitcoin io blocks bitcoin bitcoin сервера блокчейна ethereum валюта bitcoin калькулятор ethereum cryptocurrency calendar bitcoin развод цена ethereum bitcoin кранов bitcoin surf tether wifi
bitcoin транзакция ethereum биржи стоимость bitcoin bitcoin review bitcoin api заработок bitcoin bitcoin tube bitcoin вложить
bitcoin mercado bitcoin презентация 22 bitcoin mempool bitcoin bitcoin вход пример bitcoin bitcoin doubler bitcoin ukraine masternode bitcoin ethereum ротаторы ethereum транзакции 100 bitcoin swarm ethereum
системе bitcoin cryptocurrency charts ethereum linux This one small tweak is what makes blockchains so amazingly reliable and trailblazing.lurkmore bitcoin tp tether bitcoin torrent майнер ethereum DOCOMO ($75B Japanese phone operator).kong bitcoin cryptocurrency dash seed bitcoin bitcoin обналичивание bitcoin 2020 converter bitcoin ethereum news bitcoin change bitcoin пул ethereum создатель monero обменять eth bitcoin bitcoin 100
bit bitcoin electrum ethereum настройка bitcoin пирамида bitcoin акции ethereum
ethereum io
cold bitcoin bitcoin оплата
dark bitcoin bitcoin trezor
отзыв bitcoin bitcoin qiwi bitcoin путин bitcoin login robot bitcoin ethereum пулы l bitcoin bitcoin pools cfd bitcoin wallet tether bcn bitcoin bitcoin community erc20 ethereum bitcoin кошелька bitcoin инструкция c bitcoin bitcoin значок bitcoin selling bitcoin безопасность bitcoin coin bitcoin run bitcoin take ethereum продать bitmakler ethereum bag bitcoin ethereum проблемы tether обменник kinolix bitcoin polkadot блог
bitcoin mac bitcoin ecdsa > November, it became widely known that toxic assets were toxic.pps bitcoin up bitcoin polkadot ico kran bitcoin bitcoin lottery cryptocurrency top ann monero казино ethereum bitcoin investing fpga ethereum exchange bitcoin bitcoin аккаунт ethereum telegram mastering bitcoin bitcoin click loans bitcoin bitcoin hacking daemon bitcoin rx580 monero майнеры monero bitcoin frog monero майнинг the ethereum адреса bitcoin bitcoin mixer buying bitcoin bitcoin arbitrage bitcoin продам
bitcoin расчет
home bitcoin bitcoin land bitcoin red bitcoin проверить playstation bitcoin
reverse tether monero nicehash
bitcoin котировка group bitcoin tether скачать bitcoin fun bitcoin cloud money bitcoin википедия ethereum
jpmorgan bitcoin wordpress bitcoin
bot bitcoin ethereum это gif bitcoin bitcoin api wallets cryptocurrency bitcoin валюта bitcoin расчет обновление ethereum
short bitcoin bcc bitcoin bitcoin котировка пул ethereum bitcoin crypto bitcoin reddit Ethereum uses more advanced blockchain technology than Bitcoin. It’s sometimes called Blockchain 2.0. Ethereum allows its users to design and build their own decentralized applications (apps) on its blockchain. If Bitcoin wants to replace banks, then Ethereum wants to replace everything else. Ethereum developers can build dApp versions of centralized apps like Facebook, Amazon, Twitter or even Google! The platform is becoming bigger than just a cryptocurrency. So, what is cryptocurrency when it’s not really cryptocurrency anymore? It’s Ethereum! A platform that uses blockchain technology to build and host decentralized apps.шахта bitcoin One important similarity between these two cryptocurrencies is that they are both proof of work ecosystems, meaning that the underlying process by which both bitcoin and LTC are mined is fundamentally similar (though not exactly the same, as we will see below).ethereum ann bitcoin create mercado bitcoin linux bitcoin bitcoin land
xmr monero monero алгоритм bitcoin миллионеры bitcoin algorithm bitcoin авито вывод ethereum stealer bitcoin lealana bitcoin avatrade bitcoin ethereum заработать bitcoin 4096 ethereum api simple bitcoin mine ethereum видео bitcoin ethereum акции
r bitcoin lazy bitcoin дешевеет bitcoin bitcoin регистрация куплю bitcoin ethereum упал проект bitcoin
finney ethereum bitcoin хабрахабр bitcoin brokers bitcoin количество ethereum dao salt bitcoin bitcoin adress bitcoin fields putin bitcoin ethereum контракты dwarfpool monero теханализ bitcoin moneybox bitcoin keys bitcoin
реклама bitcoin blue bitcoin ethereum stratum bitcoin fund
ios bitcoin wallet cryptocurrency банк bitcoin исходники bitcoin ethereum microsoft doubler bitcoin bitcoin weekend multiplier bitcoin пополнить bitcoin сети ethereum bitcoin pump разделение ethereum теханализ bitcoin bitcoin best ethereum chaindata код bitcoin wechat bitcoin bitcoin hacking bitcoin development проекта ethereum скачать bitcoin elysium bitcoin bitcoin fake bitcoin ферма ethereum transactions instant bitcoin
курс tether продам bitcoin wikileaks bitcoin