BIG Switches Coming to Bitcoin! ( why you may want to hold on to your coins)
Update 11/16/2018: This article has remained one of our most popular at AthenaBitcoin.com. Many things have switched, however, and wij wished to shortly summarize the current situation:
- The USAF/BIP148 split wasgoed precluded prior to August 1st by the Segwit2X agreement
- Bitcoin Specie forked on August 1st and has become, so far, a major altcoin
- Bitcoin Gold forked on October 27th, albeit the network didn’t go live until November 12th. It has received much criticism overheen how it’s bot executed so far.
- Segwit2X wasgoed cancelled on Nov 8th ter a verrassing announcement by six leaders te that movement. It remains to be seen if there is any disruption spil of the flagrante planned fork block of 494,784, but the caudillo feeling is that it’s not going to toebijten.
Our diferente article is below:
The month of July going into August promises to be indeed interesting ter the world of Bitcoin. This is when two proposals for scaling the Bitcoin network (enhancing it’s transaction capacity and lowering fees) are planned to come into effect. The catch is: Wij don’t know which proposal will activate!
What is happening?
The Bitcoin network will most likely upgrade to include fresh rules that will permit it to support more people and more transactions vanaf 2nd. This is excellent news because thesis switches will help Bitcoin grow and eventually start to address the congestion problem that has caused Bitcoin’s transaction fees to increase from a few cents to several dollars overheen the past few years!
When is this going to toebijten?
Towards the end of July wij will start to see which specific proposal gains support from the majority of the miners on the network. Ter the best case screenplay, wij will see the very first proposal known spil “Segwit2X” activate sleekly just before August 1st. Ter this case there should be no disruption for Bitcoin users (yet. ). If Segwit2X doesn’t activate then August 1st could be a problem, that’s when the 2nd proposal known spil “BIP148” is due to kick te. There is a good chance the Bitcoin network would fork at that point.
What is a fork?
A fork, ter Bitcoin terms, is when two different blockchains emerge from a common history. Essentially, Bitcoin would split ter two and go down different paths that may or may not be sustainable. A person using a regular wallet may end up paying someone on the wrong fork or on both, unintentionally. It is a dangerous time to actually send (or receive) bitcoin.
Are my bitcoins at risk.
Most likely not, but what happens depends on where you store your bitcoin.
- IF you store your funds ter the Athena Bitcoin app, then you’ll be safe no matter what happens. BE SURE you have written down your username and password on paper and stored that securely!
- IF you use another private, non-custodial wallet like Blockchain, Mycelium, Airbitz, Copay, Breadwallet, Electrum, Uittocht, and several others, then you’ll also be safe. BE SURE you have made a paper backup and stored it ter a safe place!
- IF you have a custodial wallet or bitcoin stored on an exchange or webstek such spil Coinbase, LocalBitcoins, Paxful, Backpage, Xapo, Freewallet, GDAX, Openleggen, BitStamp, Poloniex, and several others, then your bitcoin is ter the forearms of a third-party. Te the event of a fork (possible, but not assured) it will be entirely up to them which fork they go after and which coins you get. That may be fine for you if you trust the sites you are using with this decision. Anyone who wants the choice of what happens to their coins should send their bitcoin to one of the non-custodial wallets above spil soon spil possible (at least before August 1st).
Can I securely use bitcoin (send or receive)?
This is where things get a little tricky. You can use Bitcoin normally up until August 1st. After that depends on whether or not the network has forked. Wij will be watching thesis events closely and will suggest guidance the best wij can to our customers at AthenaBitcoin.com, spil will Bitcoin news sites such spil Coindesk and Bitcoin Tv-programma.
Spil mentioned above, Bitcoin is headed for some interesting weeks and months ahead. Segwit2x is the proposal that emerges to have the most support right now and is planned to activate very first ter late July. BIP148 is the other proposal due to activate August 1st. Both proposals intend to bring an upgrade called Segregated Witness (Segwit) to the network and greater transaction capacity. How they do so differs somewhat, however.
Two, Three, Four “Bitcoins”??
If (or perhaps when) Bitcoin forks, one side may end up getting the majority of mining power (hashrate) and end up becoming THE “Bitcoin” that the majority of users will go after. Even ter this script, however, there may be a period when two or more “Bitcoin” blockchains exist and spending or receiving bitcoin under those conditions may be dangerous. With two (or more) forks, a sender doesn’t truly know which blockchain the transaction will emerge on or which one the receiver is watching to be paid.
On the other forearm, it could be the case that two (or more) Bitcoin forks persist and serve different user bases for much longer. Ethereum Classic, for example, famously split from Ethereum overheen The DAO incident and has remained a viable independent cryptocurrency for almost a year now. Bitcoin could go through a similar split where the 1MB chain (+Segwit) and the 2MB chain (+Segwit) go their own separate ways. If this happens and is sustained, then it will be good for Bitcoin users overall.
Dual Your Money?
If Bitcoin forks and for however long each fork persists, you will have the same quantity of bitcoin across each chain. For example: If you have 100 mBTC (
$250) right now and Bitcoin splits te two, you will have 100 mBTC on Bitcoin1 and 100 mBTC on Bitcoin2 at the time of the split. Te a sense, you will have “doubled your money”, however you should keep ter mind that the value of bitcoin on each side is likely to plummet very likely more than 50% due to all the uncertainty. Only ter time, if both chains persist, would your holdings across both possibly end up being worth more (te dollar terms) than what you had before the split. Likewise, if bitcoin splits again you may end up with three “100 mBTC” balances, but the value of all would be very volatile.
Choose Your Path
The preceding paragraph is only true if you store your private keys te a non-custodial wallet (see the “Are my Bitcoins at Risk. ” section further above). Merienda you have control of your private keys you will have the means to use your coins across any or all forks that come along when contraptions are developed to securely do so. Wij would advise most users to wait for further guidance from your wallet developers and from your payees for how to use your coins securely and on what chain.
Expect puinhoop, uncertainty, and big price swings if/when Bitcoin does eventually fork, but this crypto proef is resilient and wij should all become stronger ter the end.