Join over 94,000 students, learn all you need to know about Bitcoin. One Email a Day, 7 Days in a Row. Back in August 2017, the first coin created from a Bitcoin fork came gold silver bitcoin review existence: Bitcoin Cash.
Why should you be interested in forks? What are the dangers surrounding forks? How to safely claims coins from hard forks? What are the upcoming Bitcoin forks? What the hell is a Bitcoin fork? We discussed Bitcoin forks back when Bitcoin Cash was just coming out.
If you want the full explanation, you can read the original post. If you want the quick and dirty explanation, keep on reading this post. It means someone is changing the rules. Normally, for the game to work properly, everyone needs to agree on the rules being changed. If that happens, then the change is implemented and everything continues as normal. The same can happen with Bitcoin’s code.
For example, Bitcoin Cash changed the block size from 1 MB to 8 MB so more transactions could be processed with each block. Of course, this is a very simplified explanation of forks—not all forks are created equal. There are soft forks, which allow the new rules to play well with the old rules, and there are hard forks, which don’t allow this and create a totally different coin. All of the Bitcoin forks you’re hearing about lately are actually hard forks. Why should I even care about a fork?
You may want to switch over to the new rules and the new coin because you think it’s better than using the original Bitcoin. You may want to profit from the fork by selling the new coins that are delivered to every Bitcoin holder. Let’s go back to our game analogy. Imagine your game has been running for a very long time, and you’ve managed to accumulate a considerable amount of points in it. Now someone wants to change the rules but doesn’t want everybody to lose their points, so the new game will start at a certain point in time, and everyone will have the same amount of points they accumulated up until that point. If, for example, you had 150 points in the original game, you could switch to the new game and still have 150 points.