What is cryptocurrency fork

Recently, cryptocurrency has become the object of generation, investment in speculative processes on target exchanges, and the corresponding exchangers. Successful orientation in terminology, inherent in this field, determines the achievement of goals from mining and ending with building the correct analytical forecast of development.

Hard and soft fork - what's the difference?

There are two categories of forks: softfork and hardfork. The etymology of these units allows us to understand the essence of phenomena.

  • Under softforkom they understand the soft change of the chain, in which there is a rollback to a certain number of blocks, where the code change takes place. In such a situation, a revolutionary change by an outside observer is not fixed.
  • Hardforkom is a radical change in the functioning of algorithms and program code. At this stage, the introduction of new technologies, leading to a split system "blockchain". At this point, a new coin appears.

How to make money on the cryptocurrency fork

A cryptoinvestor has a question: how can you earn money using forks of cryptocurrency? The process can be divided into two stages.

  1. Stage number 1. Analytical comprehension of all crypto-validity (news of the crypto market, features of the structure of a particular coin, opportunities and options for modernization) will make it possible to predict the fact that a fork appears. The degree of accuracy of the forecast depends on the quality of analysis. Having correctly predicted the fact of the future fork of the coin of interest, the investor will do half the work.
  2. Stage number 2. Acquisition of a coin and accumulation of cryptocurrency on a registered wallet (by analogy with a bitcoin fork). The multiplication of the asset will occur twice at the moment of the fork (again, by analogy with the fork of Bitcoin).

What to do next with the coins appeared is another matter. You can sell on the wave of excitement or wait for the time after which to multiply assets by tens and hundreds of times (if, of course, events in the market will develop in the right direction). Or lose the initial investment if the coin is not in demand.

Most popular forks for 2017

In 2017, forks of the most popular cryptocurrency are in demand. We are talking about Bitcoin, who survived about twenty forks. The most famous fork was Bitcoin Cash, the appearance of which took place on August 1, 2017. The point was to increase the network bandwidth by increasing the parameters of the unit several times.

Bitcoin Gold is considered an unusual fork; its rate in December 2017, despite the negative rhetoric of analysts, has grown by fifty percent.

December 12, 2017 appeared another fork - Super Bitcoin. The coin has its own specifics, which can be found on the Internet. How much this specificity will contribute to the growth of prices will show further developments.

Bitcoin God coin was the result of hardfork on December 27, 2017. The main principle feature that distinguishes it from Bitcoin is the use of a proof-of-stake mechanism for confirming transactions.

Expected fork in 2018

In 2018, about fifty forks of only one Bitcoin are predicted, which indicates the growing popularity of the phenomenon in the modern cryptomire.

The reality is complicated by the availability of the Forkgen resource, by which any developer who does not have special talents can initiate the launch of a new cryptocurrency on the cloned old Bitcoin platform. Among the other cryptocurrencies are also planned forks.

Cryptomir with time can be recharged with Ethereum coins:

  • Ethereum Uranium.
  • Ethereum Star.
  • Ethereum Emerald.

Risks and prospects

The quality and prospects of growth in the cost of forks can only guess. On the one hand, the fork should improve one or another side of the coin technology, positively influencing the popularity and, as a result, cost. On the other hand, cost and popularity are the things determined by positive rhetoric, positive informational background around the corresponding cryptocurrency, belief in its potential investors.

Without confidence in the product, technological upgrades cannot serve as a springboard for cost growth. It is important that before or after the fork, the market believes in an existing or future coin. How to guess the very coin, predicting the development of further events, is the main question of a successful investor.

Only a rigorous analysis of market volatility, and the study of the technological features of the proposed fork, will improve the quality of the forecast.

Fork is a common phenomenon in the cryptocurrency market, which allows both to receive potential profit and to lose money that was mistakenly invested in a coin.

Watch the video: What is a Bitcoin hard fork? Simply Explained! (October 2019).

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