The craze for the world’s most famous virtual currency, bitcoin, has been growing by the second and it does not seem to slow down. Cryptocurrency reached a new historic high on the Saturday of, October 21, when it passed the bar of 6,100 dollars, 6,147.07 dollars. For Bitcoin specialists, this rapid rise would originate in the split of the currency scheduled for Tuesday, October 24. In the jargon, it is called a “hard fork.”
Each bitcoin owner will now receive a bitcoin “gold” next week for free. However, The traditional bitcoin will not be affected and continue to function normally. However, it is still not clear if its course will be affected by this new competing cryptocurrency or how will this render the ongoing cryptic cycle.
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WILL THE CREATION OF BITCOIN GOLD PUT AN END TO THE CRAZY SPECULATION?
This is not the first time in the discourse of history where such an incident took place. The first split had occurred in August with the creation of Bitcoin Cash where instead of losing bitcoin’s value, on the contrary, it had actually boosted its price. Investors hope to do the same this time with Bitcoin Gold. In the world of crypto-currencies, the split technique is very common. It is usually used as an update to correct or improve its management system, the famous blockchain.
Because, whether bitcoin or ether, the decentralized currencies are not managed by central banks but by a community that includes both developers, users and “miners,” namely people responsible for extracting new bitcoins by using the computing power of their computers, or even that of others in the context of hacking. These communities also include verifiers, which in blockchain language we call nodes. It is only after node validation that a bitcoin transaction is accepted.
A Newcomer to make or break?
But the phenomenal success of the virtual currency makes its creation by “mining” or its use by making the process of paying more and more difficult with each new transaction. As a result, delays become longer, and transaction security eventually weakens. This situation becomes difficult by the day, and a remedy had to be provided, hence to cope with these flaws, the Bitcoin community has made a choice to increase the size of the blocks in order to streamline the transactions. Each of them contains more information, Making sure the integrity of the chain is faster.
But twice a minority decided to secede by creating derived blockchains. First Bitcoin Cash, responding to the name of BCC on multiple trading platforms, and recently the Gold (BTG). They created two new independent currencies derived from bitcoin. This could once again be a move against the world of crypto-currencies and to drown the investors in turmoil whereas dissent in the governance of the virtual currency is its true Achilles heel and one of the main causes of its very high volatility. To be reserved for investors who are very knowledgeable and passionate about thrills.
