- 09 Jul, 2018
Another bitcoin fork is on its way, with new lessons for developers, investors, traders and cryptocurrency enthusiasts. However, crypto-community is better informed about the what it can expect from the upcoming bitcoin fork. Most of the bitcoin investors and traders are now aware that the cryptocurrency holders will receive an equivalent amount of newly created coins, which can fetch them handsome profits in practically very less time. Bitcoin price is escalating before the bitcoin split due to incessant buying to get these free altcoins. Post the bitcoin fork, the price is expected to adjust as the short-term profit encashment opportunity will cease to exist. This phenomenon of buying bitcoins and selling the newly received altcoins such as Bitcoin Cash and Bitcoin Gold for profit has become a hard fork strategy for whales, traders and investors.
Bitcoin fork and wavy bitcoin price
Constant pressure to buy bitcoins supplemented with a short term capital gain opportunity is driving up the bitcoin price. It is known that after the split, the bitcoin holders will own same number of split tokens on the bitcoin network. People who have wallet that supports forked chain software will get two tokens, bitcoin as well as split tokens. To explain this further, a person who owned 10 BTC in his wallet before the bitcoin fork, will have continue to own his 10 BTC along with an additional 10 newly split tokens (such as 10 Bitcoin cash). He may sell his additional split tokens to recoup handsome profits in very less time.
Yet another fork – Segwit2x
Scalability of bitcoin blockchain has been a concern unaddressed since its inception. With tremendous growth in number of bitcoin users, Bitcoin fork serves a probable solution to accommodate growing number of transactions within the block. After the bitcoin fork in August, which created Bitcoin Cash and Bitcoin Gold in October, the world is awaiting to witness another subsequent bitcoin fork in November. Segwit2x hard fork expected to occur in November, is a technical compromise between bitcoin miners, developers and businessmen to increase the bitcoin block size from 1MB to 2MB. It will reduce network congestion and prevent delays in bitcoin transactions. It aims to improve overall network capacity through this software upgrade.
Crypto-community is curious to see what unfolds after the scheduled fork event. In the meanwhile, bitcoin holders are advised to keep their digital assets safe and avoid doing any kind of bitcoin transaction for at least 24 hours before the actual bitcoin fork.