What happens to your Bitcoin during a hard fork

in #bitcoin7 years ago

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Today i am gonna explain what happens to your bitcoin during a hard fork.
So there is a process in Bitcoin where there is a disagreement or change in the rules, bitcoin can split into two systems that operate in parallel. This is unprecedented it doesn't happen on a plan bases anyway, and in fact there is a lot of effort to avoid it. Because you can have severe monetary consequences for those who have to do it. But there is always a possibility that it might happen, if it does happen the ledger is replicated on both sides, meaning that if you have a key that controls certain value, that key will control that value on both sides Because both sides will have the same ancestry. Now you may at first think "Whoa does that mean i have twice as many coins?". It does mean that you have twice as many coins, but one thing i can almost guarantee you is that they are now worth half as much or less then what a single coin was before. Double the amount of coins is NOT a good thing, and it will damage the price of bitcoin temporarily at least. However i think in the long run we will see that bitcoin will survive this kind of attacks, it will survive this kind of activities the reason it will survive is because it is designed to be a resilient, self healing , anti fragile system. Which does not work only when things are going okay, it is a system that's designed to work when it is being attacked. the assumption is that it is being attacked all the time. the reason bitcoin survived until this day is because it has been attacked every single day for EIGHT years, and survived and improved and grew stronger, it has a reactive immune system. and bitcoin will survive, you could say it "Mutated" evolutionary outcome of bitcoin that is now resistant to that particular attack will evolve out of it. even if this destroyed the fundamental technology of bitcoin it would give us the most valuable lesson of all, which is how to build the next version to resist exactly that attack and improve on it. Now the question is what happens to your bitcoin? The first question you need to ask yourself is if your bitcoin is yours, and that question is answered by if you control your private key, if you control the keys directly then after the possible fork you could decide what to do with it. I would expect a slow period of transactions because people will wanna see how this plays out, So i suggest you sit still, hold tight, and wait until things clarify themselves. your COINS are not going anywhere and are not being invalidated in any way. if you have coins on an exchange and you are worried about the possible event of the fork, and you have an investment and it scares you, it would probably be a good idea to remove your money BEFORE the fork to an address that you CONTROL the private key, so you can have that ability to decide what to do with it. Lot of exchanges will be able to support both sides of the fork.

Hope this information helped!

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