Knut Svanholm

@knut.svanholm

Fork? What fork?

One way of looking at recent events:

After two years of squabbling, the Bitcoin community finally came to an agreement on how to best scale up the network. They did so by first agreeing on that an 80% agreement (instead of the usual 95%) on this particular issue would be enough since there appeared to be a stalemate in the debate. Since the network was “clogged” the problem needed to be solved urgently. Everything went smoothly and the Bitcoin protocol was upgraded in exactly the way it was supposed to from the beginning. The longest chain is Bitcoin and a unanimous decision on how to move ahead was made.

Meanwhile, those who were opposed to the scaling solution decided to do something unusual. To fork the network. But here’s a surprise for some of you:

There was no fork.

Bitcoin is still Bitcoin. In its very core is a 21 million coin limit. In its very core is the idea that consensus in the network constitutes what Bitcoin is. To double the amount of coins would be to commit cryptocide!

So what is “Bitcoin Cash”?

“Bitcoin Cash” is an altcoin with pre-mined coins for all who own Bitcoin, all who control their private keys. If you do you’ve made a profit! At the time of writing a BCH token is worth almost a fifth of a Bitcoin! And Bitcoin is still very close to its all time high. Everyone in this just got 20% richer over night. Let that sink in for a while. The so called fork hardly made a ripple in the crypto ocean. What other asset does this? Never a dull day in Bitcoin…

More by Knut Svanholm

Topics of interest

More Related Stories