At the time this article was being written, the price of Bitcoin was $52,312.71. By the end of the year, there’s a good probability that Bitcoin will nudge itself closer to its all-time high. In less than a year, it has risen from the ashes of $20,000. As Bitcoin gains momentum towards a potential boom, it begs the question of whether a major adjustment or shift is currently required.
A change currently circulating in the Bitcoin community has to do with forking. In that approach, a new blockchain branch or version is established in space. It is best carried out when there are conflicts or many transactions on the network. Moreover, there might just be a consensus to chase forks and improve performance all around.
In the cryptocurrency world, there are two sorts of forks: soft forks and harsh forks.
Backward-compatible updates known as “Soft Forks” are frequently welcomed by the community. On the other hand, hard forks represent modifications that are not backward compatible and hardly ever accepted by the community.
Hard forks struggle to establish traction, whereas soft forks are readily accepted. This is because market uncertainty and community discussions are sparked by forking. It also causes divides in network support.
Mastering Bitcoin
It is stated that on January 3, 2009, Bitcoin was introduced. Credit for its introduction goes to an inventor going under the alias Satoshi Nakamoto. Features like immutability, a proof-of-work system, and limited supply are ideal characteristics of Bitcoin.
Above all, Bitcoin is recognized as a cryptocurrency that has paved the way for other virtual currencies to come after it. Among these is Ethereum, and the list also includes Solana and Polygon, among other names. The US SEC’s decisions approving 11 Spot Bitcoin ETF applications, which go into effect on January 10, 2024, demonstrate how quickly cryptocurrencies are progressing.
At the moment, Bitcoin is aiming for the $100,000 BTC milestone. Before the end of the next year, it might arrive at the ports.
Rivals of Bitcoin
Ethereum, Litecoin, and Bitcoin Cash are a few of the competitors of Bitcoin. Bitcoin Cash will continue to be noteworthy. Interestingly, it was created in 2017 when Bitcoin had a fork. There were discussions throughout the process, and the introduction of a new token served as a means of resolving the disputes. Despite a 0.44% decrease in the last day, BCH is currently trading at $267.12, up 14.03% over the previous 30 days.
The most likely contender to compete directly with Bitcoin is Ethereum. Its original coin, ETH, has increased by 0.79% over the past day to a strength of $2,934. Ethereum has received a lot of attention for its wider utility and environmental focus. The Spot Ether ETF, which is anticipated to launch in the middle of this year, may soon provide it a boost.
Once upon a time, Bitcoin was considered a store of wealth or a substitute for gold. It still hosts that tag, but there will soon be additional services available. In terms of community, Ethereum and other cryptocurrencies are more established than Bitcoin.
The Debate About Forking
Halving and forking are not the same thing. Halving is the process of decreasing the token’s mining rewards to lower its supply and raise its trading value. More specifically, forking refers to introducing a new branch or version of the blockchain. Both, nevertheless, may have a temporary impact on the trading of original tokens.
When the community cannot connect the proposal to changes or improvements, disagreements arise. In other words, it needs to be useful for the blockchain to benefit from it. Regarding the hostile fork of Bitcoin, fans are arguing that roll-ups would be a more useful solution. This is predicated on the idea that there would be a considerable decline in economic worth.
On the other hand, miners, investors, and developers see this as a chance to investigate, accept, and foster the development of Bitcoin Halving. As of right now, the argument’s strength is in favor of maintaining Bitcoin’s current velocity, but there is no clear conclusion.
In summary
Bitcoin forking isn’t always a negative thing. It’s also not always a good thing. The way the official pitch is presented for voting is the focus of attention. By bringing another token similar to BCH to the market, a fork might finally put an end to the dispute.