Bitcoin is an electronic currency, but unlike government-issued currencies, there’s no single entity that issues BTC. Bitcoin SV is also known as Bitcoin satoshi vision is a cryptocurrency created by forking the BTC to reduce transaction fees. There is a lot of passion behind each bitcoin fork’s supplies. Now you must be thinking about what is Bitcoin SV?
If you have heard about cryptocurrencies, you have probably heard of something called “forks.” In August 2017, The first coin created from a Bitcoin fork came into reality: Bitcoin Cash. However, since then, numerous other coins have also been “forked” from Bitcoin: such as Bitcoin Gold and Bitcoin Diamond. Most people are still pondering what these forks are? How do they happen, and can you profit from them. So what’s a fork?
What are Bitcoin Forks?
The concept of forks is extremely complex, but the easiest way to think about a fork is that it introduces new rules for Bitcoin that bitcoin users have to follow. A fork is an alteration of the current Bitcoin code (or protocol). In other words, someone is changing the rules. Imagine that you are playing a game with thousands of other people from around the world, then someone says, “Hey, let’s change the rule.” Normally, for the game to stay intact, everyone needs to agree on the rules being changed. If that happens then, the change is implanted, and everything continues as normal. But if there is not a large consensus about the changes, then two versions of the game will be created, one with the original rule and another with the new rules; in other words, there will be a fork in the game. That is similar to the fork in the road. The same can happen with the Bitcoin code. Generally speaking, when a fork happens, you will have an “original Bitcoin” and a “new Bitcoin.” For example, Bitcoin Cash changed the block size from 1 MB to 8 MB so more transactions can be processed with each block.
Therefore, there are now people who support this change. So, they have switched to a new coin called Bitcoin Cash or BCash. You will also have people who decide to stay with the original rules and keep using the original Bitcoin.
All forks are not created equal. There are soft forks that allow the new versions to play well with the original versions, and there are hard forks that don’t allow this feature and create a totally new different coin.
All of the bitcoin forks you have heard about recently are actually hard forks, and you should care about forks because there are several reasons. First, you might want to switch over to the new rules and the new coin because you think it is better than using the original Bitcoin. And second, the fork can impact the Bitcoin community, Bitcoin adoption, and even Bitcoin price.
Should I buy my first Bitcoin before or after the hard fork?
If you are thinking of buying BTC, you probably assume that it will continue to gain value. But in reality, no bitcoin users can predict what is going to happen to the price of Bitcoin after the fork; that’s why you should always buy BTC as soon as possible if you believe bitcoin is on an upwards trend. You will get the benefit from the BTC fork.
The reasons why you should invest in Bitcoin:
- It will be the main currency in the future. One thing the economic crisis of 2009 showed us is that traditional banking systems are flawed, and it was confirmed in 2020. More and more people see the need for viable alternatives, and that’s exactly what crypto offers a secured decentralized form of banking that takes government and banks out of the equation. According to research, by 2030, two hundred million people will be using digital money, and by then, traditional money will be already on the way out.
- You can make and receive payments from the crypto account, you can use it to save, but the really big opportunities come with investing in BTC. If you did invest 100 dollars in BTC just five years ago, by now, that 100 dollars will be worth 2500 dollars. The price of BTC is still set to keep going on up.
- It is a solid alternative for saving your money. Suppose your 100 dollars in cash buried it and waited for ten years. In that case, the amount you could buy with it a decade later could be a lot less than when you put it in the ground because of inflation, and leaving it in a bank account isn’t going to be much better if at all because of the interest rates of bank account which vary from zero to extremely low that’s why investing in BTC is more volatile than most currencies largely because it’s still new and gains intention.
- You are safe from inflation. The problem with traditional money is it’s always going down in value. This isn’t by accident governments and central banks do it on purpose, especially when there is a financial crisis. In the year 2020, there was a shortage of money due to COVID, and the government tries to get around it by printing more. In fact, 22% of all dollars that exist today were created in 2020 when the Federal Reserve injected two trillion dollars into the economy. That’s why smart people trust gold more than money because when there’s an economic crisis, new gold doesn’t just magically appear out of nowhere, and it holds its value, and BTC and other cryptos just gold. That means BTC holds its value and is inflation-proof.
Hey, I am Raj. I am the owner and content publisher at Financenize. I have completed my education till intermediate school and after that turn to a full-time blogger and content writer. I usually share the quality information for the readers in Financenize, which helps the small business, individuals and entrepreneurs and the information I share makes their task more manageable. I am expert in analyzing the current situation and deliver a profitable period to the extent. You can find me on various social media handles online.