Bitcoin Hard Fork Explained | What is a Fork? What Happens to My Coins?

Bitcoin Hard Fork Explained | What is a Fork? What Happens to My Coins?



Hey guys, so it’s been a wild ride for Bitcoin this past week. We saw Bitcoin tank over the weekend to a low of $938 and then recover to back around $1100.

Apparently this is being caused by talk of a potential Bitcoin fork. While I’ve read a lot of articles on this matter, I found myself even more confused about the whole fork issue, and most of the articles left some important questions unanswered such as…

1. What is a fork and what causes it?

2. Are Bitcoin Miners actually supposed to be able to make changes like this?

3. What is Bitcoin Core Vs Bitcoin Unlimited?

4. What does it mean when people say 75% of miners have to agree? Is there a vote or something?

5. What happens to those of us who have Bitcoins? Do we choose which coin we want or do our coins double?

6. Anything we should do to prepare?

I didn’t see these questions answered so I reached out to Reddit and the interwebs to try to get these questions answered.

I apologize if my explaination isn’t as clear as you may like, this stuff is still flying a bit over my head but in this video we attempt to answer these questions

40 Comments

  1. What are Cryptocurrency Forks?- Everything You Need to Know about Hard Fork and Soft Fork
    https://coingape.com/what-are-cryptocurrency-forks/

  2. let me explain this to you! OH WAIT I DONT HAVE ANY IDEA WHAT THE FAK IM TALKING ABOUT

  3. This is like poke man chase is an illation wake up people ask yourself who s behind it then you find out what's the value

  4. Hey I have poked man cards they also have value the only thing is if you go to the supermarket they won't take t

  5. Why make a video saying over and over how confused you are . All that I now know is that I don't want to watch any more of your videos

  6. Facundo Olcese oliva

    Bitcoin 1k….fuck me

  7. Why do you make a video about forks
    If you don't know nothing about
    What a waste of time …

  8. Glad I'm in forkless IOTA

  9. 4 minutes in and poster only confesses he knows very little about the fork process. waste of time.

  10. 5 minutes into the video the guy starts explaining it.

    fucking kill yourself holy shit you incompetent fuck

  11. Very good video you are doing, if you want to earn more crypto you have to post on steemit, it's a place where people earn money kist from posting and commenting, you earn in steem and convert it in bitcoin, some people are earning there several hundreds follars just from on post, here is the link to join : https://steemit.com/@clixmoney

  12. so does this mean they're attempting to make bitcoin without a max? THUS MAKING IT LIKE CASH (NO LIMIT ON THE AMOUNT TO BE PRODUCED)

  13. quelle autre wallet prend les deux ?

  14. Is this only effecting BTC? Are ETH, and LTC exempt from this?

  15. will storing coins in my Xapo wallet a good idea during the hardfork?

  16. Worst case scenario: We have a permanent Fork which is no different than one company splitting into two companies in which you have stock in both. It is not necessarily a bad thing, it could be a good thing. Often one of the smartest things a company can do is create its own competition or specialize to fill different needs. Our understanding of Forking (harm verses benefit) may change over time. It is possible that forking becomes the norm and a more desired outcome.

  17. In the event of a hard fork, how do I decide which side my coin is in? Where should I have my coins at the time of the fork so that I am no locked in to one side or the other. Even if I move it to cold storage, isn't that only stored on the side of the fork it was at the time I cold stored it? Damn, no one seems to totally understand this stuff. Or at least no one seems to be able to explain it completely. And like you said in the video, answers vary person to person.

  18. I have no idea what you just said

  19. the concern is when you have BTC in a site like BitConnect for example…..

  20. It just occurred to me that the concept of a maximum of 24 million minable bitcoin, or any other crypto currency for that matter is completely undercut by the possibility of endless hardforks.

  21. The confusion is hurting bitcoin and it makes it hard to invest with security and safety

  22. Christopher Evans

    Bitcoin is going to eventually fail and that makes me sad. Sell.

  23. in the event of hard fork, do I understand it right that holding a BTC on wallet or exchange – I am still dependent on developer that decides whether both or only one "currency" will be supported on that platform?
    Holding BTC in paper form, I wait for a wallet/exchange to support both or bring it to two different apps (each supporting one currency). Having 1BTC therefore results in 1BTC and 1BTU. Will I be able to convert 1BTU to BTC under exchange rate (lets assume example rate 1BTC = 1BTU) and therefore have then 2BTC? (or wise versa, depending which direction I feel to go). If this is true, one could think that the form results in gain, however the value of BTC could drop and that drop will be represented in BTU for example. So essentially, my orignal 1BTC would become worth 0.5BTC and 0.5BTU (if the split is 50:50). HOw does this reflect in conversion to USD? Assuming BTC/USD will drop, BTU/USD should rise, will sum of my BTC/BTU remain on the value against USD? thank you for your thoughts on this

  24. bitcoin is still in its infancy. But people what it to be everything now. It takes time for the technology to adjust. remember: patience is a virtue. One step at a time. relax. chill!! bitcoin core forever! !

  25. Thanks for explaining. All of this is making me think to go for real money even more. Gold and Silver.

  26. BTC-ECHO | Bitcoin News & Tutorials

    good video, nice to see the explanation!
    after hard forking there will be two versions of your balance, so when you have 10 btc you will also have 10 btu, depending on if you're having the private key to your wallet (or the exchange supports the other coin in case of a fork).

    the smaller coin will rapidly lose value, that also happened to ethereum and ethereum classic when they split. but it was an opportunity to make some "free money", as your balance was kind of "doubled" but you could just sell the coin you don't need (and many people will do that, that's why the prices will drop)

    We hope this won't do too much damage on bitcoin :/

    BTC-ECHO
    (german bitcoin- & blockchain-newspaper)

  27. rules,

    do you think that btu would be beneficial? have you heard of burst coin? https://www.burstnation.com/wbb/ I like that you mine it with your hhd

  28. I had some Ethereum before the hard fork. After the fork I had an equal amount of ETH and ETC. My Ethereums were copied to the other blockchain. Although it seems to be the case that this is not necessarily true for all hard forks.

  29. Try the video with Trace Meyer on the Dollar Vigilante or any information from Roger Ver.

  30. What happens with your bitcoins you don't have on a digital wallet if it forks? Do your paper copies duplicate also?

  31. im even more confused.. So say my 16 bitcoin that I bought 2 months ago was worth 20k, when bitcoin unlimited token is released and say it floats at $2.. does that mean my bitcoin is now worth 16 x $2 ($32)?
    Is it better to trade in ethereum now to limit losess trading under btc? and even though im mkaing money trading alts, im loosing more because of the weakening price of bitcoin..

    Should I pull all my money out now or will things get fixed up.. just dont want to walk out with $32

    surely someone else is thinking the same thing

  32. Fork off!  Just take your Bitcoin and buy DASH!  More transparency, and more trouble free!

  33. Bitcoin is founded on the principle that money is a medium of exchange and NOT a commodity in and of itself which can be bought and sold for profit, at interest.
    Any system which advocates the use of interest is simply usary which inevitably leads to enslavement by central banks with unlimited money. By relying on 'work done' bitcoin rids us of this form of enslavement. Therefore increasing the blockchain size, eventhough it seems limited,  stays true to the bitcoin principle. The limitation argument is the same they used to get rid of the gold standard and create all those exotic derivatives which are now imploding.

  34. Good video, I have been following Bitcoin for about 5 years and this whole Forking thing is still confusing the heck out of me.

  35. Hey Rules For Rebels, sorry for the double comment today but I didn't realize you had listed the unanswered questions in the comments section until after I posted my initial response below.

    To answer questions 1 and 3, here is an interview with Trace Mayer who is an Bitcoin Evangelist and someone very knowledgeable in this space: https://youtu.be/PuW66xlUW9A?t=3m26s

    In case you or your viewers are not aware of Segwit, it stands for Segregated Witness and that is the main software change that is proposed by Bitcoin Core (and also why Bitcoin Unlimited supporters are against).

    To answer questions 2, 4, 5, and 6, in addition to what I wrote in my previous response, this is a nice article that summarizes what we can expect in the event of a Hard Fork split: https://bitcoinmagazine.com/articles/beginners-guide-surviving-coin-split/

    It appears that this is going to be a risky and messy "divorce" with many variables still unknown. While I hope not because I see much potential in Bitcoin that may change the world in a big way, It is possible that everything will come to an end very soon. So definitely use good judgment and only invest what you are willing to lose.

  36. Hey Rules For Rebels, thanks for this timely video. While I am by no means a technical person in this space, I have been knee deep in this potential "debacle" for the past 2 weeks.

    To address your question, from what I understand, if/when a Hard Fork occurs, initially, each holder of BTC will get the same number of coins on both chains (so for example just like you mentioned in the video, if you have 10 BTC before the Hard Fork, then you will have 10 BTC along with 10 BTU after the fork).

    It is my thought (I could be wrong here) that the price will be exactly the same at the beginning. After that, the price will be determined by the market forces of supply and demand – just like everything else in the financial world.

    What stands out to me is that, again from what I understand, there may not be a maximum amount of coins of BTU that will exist in the BTU ecosystem. I had read that the total supply of BTU will be determined by votes via the overall nodes signaling for BTU. If this is the case, then this is a big difference from BTC where the amount of coins is capped at 21 million.

    There is a lot of speculation that the price of BTC will take a big hit after this Hard Fork due to existing BTC holders (who are big supporters of BTU) unloading their sizable share of coins. As traditional economics would dictate, when there is a big increase in supply with the same or less demand, there is downward pressure on the price. So for holders of BTC who wants to see the long-term success of the cryptocurrency, this is something to be concerned about.

    Lastly, I don't believe there is a defined threshold of when the Hard Fork will be activated. As you mentioned in the video and also from what I read/heard, 75% hash rate is a preferred metric. This link: https://coin.dance/blocks currently (as of this writing) lists the BTU hash rate at just above 40%, though it has experienced significant gains in the recent past. So this is something worth monitoring.

    Personally, I would move all bitcoins off of the exchanges and into desktop/hardware/paper wallets. I would also be hesitant to acquire anymore bitcoins when the hash rate exceeds 50%.

  37. The way I understand it is when a new alt coin is created with new protocol the original Bitcoin does not adhere to, you have a new "currency". You can still sell one to buy the other, but you would need to convert one into fiat currency before buying the other

  38. It sounds like greed is getting involved.

  39. You can trade BTCu on this page. The profit is huge and we all know BTCu wont happen https://www.bitfinex.com/?refcode=i3h5OsGz1d

  40. bitcoin is nothing more than a digital fiat currency…. i want money not currency….

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