What are Bitcoin forks? A simple explanation for the novice trader
It seems like Bitcoin is being forked every day but what is a fork anyway, can you profit from it, is it dangerous, are you getting free money, well, keep reading the article until the end to know the details about the Bitcoin fork as we will go over some basic ideas About Bitcoin Fork This way you can learn more about Bitcoin trading yourself.
What is a Bitcoin fork?
The first coin created from a Bitcoin fork came into existence, Bitcoin Cash, but since then many other coins have also been forked from Bitcoin such as Bitcoin Gold and Bitcoin Diamond, and most people are still wondering what these forks are, how they happen, and how they can happen. ? You profit from it.
So what is a fork, well, a fork is a change to the existing Bitcoin code or protocol, in other words, someone changes the rules, imagine you are playing a game with thousands of other people from all over the world, and then someone says hey, let’s change the rules naturally So that the game remains intact.
Everyone must agree to change the rules. If this happens, the change will be implemented and everything will continue as usual. But if there is not much consensus about the changes, two versions of the game will be created, one with the original rules and one with the new rules. In other words, there will be a fork in the game. It’s like a fork in the road, and the same thing can happen with Bitcoin code in general when a fork happens, you’ll have the original Bitcoin and a new Bitcoin.
For example, Bitcoin Cash changed the block size from one megabyte to eight megabytes, so that more transactions could be processed with each block, so now there are people who support this change, so they switched to a new currency called Bitcoin Cash or BeCash.
Types of Bitcoin forks
You will also have people who decide to stick with the original rules and continue using the original Bitcoin Of course, this explanation of forks is very simplified since not all forks are created equal, there are soft forks that allow new versions to play well with the original versions.
There are hard forks that don’t allow this feature and create a completely different currency. All the Bitcoin forks you’ve heard about lately are hard. Now, why should you care about forks? There are many reasons why you should care about a fork.
Firstly you may want to switch to the new rules and new currency because you think it is better than using the original Bitcoin.
Secondly, the fork could have an impact on the adoption of Bitcoin by the Bitcoin community and even the price of Bitcoin.
How do Bitcoin forks work?
When a Bitcoin fork occurs, anyone holding any amount of Bitcoin will also receive the same amount of the new currency. This situation does not happen automatically but you need to claim these coins so each new coin has a different claim mechanism and once you get your new coins you can keep or sell them.
In other words, you could make money for nothing because all you did was claim the coins out of thin air and then sell them on an easy money exchange Or is it that when the forking trend with Bitcoin Cash started, forking seemed like a legitimate way to express dissatisfaction with the path it was taking Bitcoin currency.
And then there was a fork in the road, but since then, the recent forks have emerged very similar to each other and the main reason behind their creation is more of a marketing gimmick than an actual ideology, in other words, if someone thought they could create a better currency than Bitcoin, can create a completely new altcoin, so there is no need to create an altcoin.
Bitcoin clone
In this case, it seems that the developers decided to fork Bitcoin for one of three main reasons: One of the main marketing reasons is that Bitcoin forks are the new icons that everyone is looking to for free coins, so people are actively searching for information about them.
Just let’s say you’re forking Bitcoin and you’re done making quick money for the developers. Some of these forks aren’t copies of Bitcoin. The rules are changed in a way that gives the developers a large initial amount of new coins which they can then dump into the market once the coins start trading.
Forks are just scams Scams can be created in the form of creating a fork to shorten the price of Bitcoin or more elaborate scams can create a fork to steal users’ real bitcoins during the process of claiming the new coin, so as you can see claiming coins from a fork also involves A great deal of risk on the part of the user.
Summary
In the end, if you decide you want to claim your coins, I suggest you only follow instructions from well-known wallets or approved publications, in the end it is your money and no wallet or publication will be able to take responsibility if something goes wrong along the way even if they post by Wrong information is wrong, remember it is a risky business, understand that and make your own choices, the only rule you should always follow is this before trying to claim any coin, move your bitcoins to a new wallet with a new seed this way you will reduce the chances of losing your bitcoin I hope you now have a better understanding of what forks are and how they work as well as the benefits and potential problems, and you may still have questions if so just leave them in the comments section.
