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3mily

what is bitcoin hard fork

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So now i finally adres the so called bitcoin hard fork to try and explain it the easy way for the average Bitcoin user as it truns out from the poll i made not so long ago asking primedice users if they know or understand what they heard about to happen on the 1st of August this year.

Will break this down in two parts first is : 1. what will happen ? and second is : 2. how does this affect you ?

1. We are here because of disagreement regarding improvements that was needed to be done to bitcoin try to see it this way, bitcoin will split into two systems that will function in paralell. This will be the first of this kind so many still fight it because it will cost a lot for those who will actually do it. There is many technical issues regarding this split that i will not discuss here but rather adres it in other posts later on. So the basic idea is that the ledger will be replicated on both systems so that your key used to control a certain amount will be used to controll it on both system at the same time. With this you will have double the amount of coins worth only half or even less then the original one you had before the split. Doubling the amount of coins the price will suffer and i have high hopes that it will only be temporarily but no one can tell. 

2. in this next part i hope to answer the important question you guys are thinking right now and that is what will happen to my bitcoin. There will be most likely the two situation like when it really is your bitcoin or not. If you have direct control of the key after the split it is up to you to make the decision what to do with it, also keep in mind that rushing into anything will not be a smart move, so many including myself  recommend waiting to let things calm down for a while after the split and get you in a better perspective so you can make a better choices, just wait , probably wont even be many new trades right after the split.

The second category i doubt that will be relevant to the primedice user but ill say it any way, it is when you have invested in bitconins and you have most or at least a big part of bitcoins on one of the exchanges. If you do not withdraw them to a wallet that you control before the fork  you wont be able to choose what really happens to them.

There will be other explanation too and a more technical version also in more detail.

If you have any questions so far you can post in comments or just message me.

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I myself have had trouble reading into all the hard details of exactly what is possible to happen relating to this, I am probably just going to make sure I have all my bitcoin cashed out before this does happen. I can't seem to find concrete evidence if this will effect the price or not =\

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Everything will happen hastily and people will panic cash out and the price will see a significant drop. That might be the bets time for investors to go in with a big investment because when the dust settles, everything will be cool with BTC.

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5 hours ago, youngman33 said:

So this would pretty much act as a stock split instead BTC may be valued at less than half its current price?

Yes , in case of stocks the shares number increases but the price is adjusted so it stays the same to ensure that the market capitalization remains the same. With bitcoin because of the differences between the two systems after the split it won't be the same.

 

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Bitcoin prices will drop and altcoin prices will rise as everyone who dont understand this stuff will just sell bitcoins and many might buy altcoins! 

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1 hour ago, BitCoinMNR0 said:

So basically if i have 10$ worth after i will have 5 on one side and 5 on the other ?

That would only happen if the fork results in two competing chains that exist. You also can't think of it in terms of fiat. If you have 1 bitcoin, then you would have 1 bitcoin in each of the forks but there value in fiat would of course be a lot different.

If one fork wins out and the network agrees with the fork, then you  would just have a single coin in the new fork.

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Just now, BitCoinMNR0 said:

I kinda said the same thing like i will have 2 coins instead of one they will worth the same if added up :) and i think that if they did not agree until now will never will. that 97% majority is hard to reach but who knows 

Yeah, I think it is unlikely that everyone will agree. You can already see how divided people are between SegWit and larger sized blocks, etc.

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