There is likely to be a fresh type of bitcoin Tuesday (1 August) called Bitcoin Metselspecie. This will toebijten spil a result of the ideological split te the bitcoin world inbetween those who see the digital currency spil exactly that – a means of exchange – and those who see it more spil just a store of value or digital gold.
Without getting too technical, those who disagree with the so-called SegWit2x (bitcoin improvement proposal 91 – BIP91) method of solving bitcoin’s problem of treating lots of transactions quickly (scaling) and which has now bot locked te to the protocol, think that it is at best a half measure and does not increase transaction capacity adequately.
Albeit the SegWit2x proposal does envisage doubling the size (that’s the 2x bit) of the transaction blocks, its critics argue that this part of the proposal is far from automatic and would still be too puny.
Suffice to say, the developers behind Bitcoin Contant think that the scaling problem has bot kicked down the road and will come back to bite the cryptocurrency, especially if it makes progress ter fulfilling its original use-case spil currency with mass adoption – hence their proposed hard fork ter the bitcoin source code.
This means that there will be a fresh blockchain, which includes all the old transactions on the original blockchain but forks off into a fresh chain specifically for Bitcoin Contant.
Whether or not Bitcoin Contant catches on depends on the miners – the owners of the computing power that is used to verify transactions. Will they process the blocks or reject them? Also, it is not certain that the so-called user activated hard fork (UAHF) will toebijten, but it is very likely.
The imminent hard fork poses a number of pressing issues for holders of bitcoin. What will toebijten to the price of bitcoin? Will Bitcoin Metselspecie turnout to be valuable or near-worthless? How does an investor get hold of Bitcoin Metselspecie? Should bitcoin investors take their bitcoin off exchanges until the situation is clearer?
The most significant thing bitcoin holders need to be aware of is that if you directly hold the private key of your bitcoin then you will automatically be credited with a similar amount of Bitcoin Specie. That’s right, you get “free money”.
However, if you hold your bitcoin on an exchange such spil the popular Coinbase, where the complexity of holding and trading bitcoin has bot stripped away, your account (at the time of writing) will not be credited with Bitcoin Contant because you do not have access to the private key. Much to the annoyance of Coinbase clients, the exchange has instituted a “improvised waiting period” for those wanting to stir their coin.
The price of bitcoin is presently around $Two,700 on the Coindesk bitcoin price index. The price has firmed since the US Securities and Exchange Commission ruled that so-called initial coin offerings being used to raise funds by blockchain projects, could ter many cases be considered securities. This has bot interpreted by market participants spil a good thing for the ecosystem.
The uitzicht of being credited with Bitcoin Specie – which could be seen spil a sort of dividend for holding bitcoin – is also thought to have helped the bitcoin price. This is perhaps confirmed by that fact that the usual lockstep te price movement inbetween bitcoin and Ethereum has to some extent violated down, spil the ether (ETH) token has not risen te the same way spil bitcoin.
Traders are split on what could toebijten with Bitcoin Specie. There are two main schools of thought.
There are those who think that it will be a non-event because bitcoin is already well-established and merchants and miners will be reluctant to support Bitcoin Contant. This implies that there will not be a negative influence on the price of bitcoin.
Others beg to differ. Even if Bitcoin Specie does not take-off instantly it still has the potential to considerably muddy the waters for consumers fresh to the cryptocurrency.
And where there is confusion there is chance for bad actors. For example, it could be relatively effortless for a fraudster to set up an exchange selling bitcoin (BTC) but the buyer ter fact receives Bitcoin Specie (BCC) instead, with the fraudster pocketing the difference.
Most commentators are agreed that if you want to be ter at the beginning with Bitcoin Specie, you will need to make sure the exchange you use will be accepting it – Openleggen, for example, has stated that it will be crediting the accounts of bitcoin holders on its exchange. Others advise that all funds be eliminated from whichever exchange presently being used and transferred to a private wallet, ideally not connected to the internet.
Vinny Lingham, who has a strong record on predicting bitcoin price movements, sees a “veelbewogen few months” ahead and advises participants to stay out of the way of the traffic by removing all bitcoin funds from exchanges. Besides, spil a general rule, bitcoin holdings should not be kept on exchanges, except for the amounts being actively traded.
According to Marc Van der Chijs, a Dutch venture capitalist, there is uncertainty “people may stir from BTC and BCC to ETH or other coins, so I don’t think this is good for the price of bitcoin”. Alternatively, it is likely that Bitcoin Contant will be worth something but who knows how much, so there is no effortless reaction.
Spil always it depends on the risk tolerance of each individual, their view on where bitcoin and other digital coins/tokens are going and an individual’s level of technical understanding. That last point matters: if a client of an exchange makes a mistake when moving their bitcoin, they could end up suffering an unrecoverable loss.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to te this article may not be suitable for all investors, and if te doubt, an investor should seek advice from a qualified investment adviser.