Bitcoin Cash is set to undergo yet another fork. The lead developer of Bitcoin Cash BCH issued the following statement of intent to implement a controversial change to the BCH network consensus rules:
“The Coinbase Rule improvement is as follows: All newly mined blocks must contain an output assigning 8% of the newly mined coins to a specified address.”
The purpose of this 8% tax on all newly-mined BCH coins is said to be for funding the development and maintenance of the Bitcoin Cash infrastructure. But a large segment of BCH users do not support this new tax, and they are expected to reject the update that will introduce this change. Attempts to find a peaceful solution to this problem have failed. The update is scheduled to be implemented on November 15, 2020. At that time, a fork will occur. The network will split between those BCH users who have implemented the update and those who haven’t. As a result of the network split, there will be two different versions of the BCH blockchain, and each BCH holder at the time of the fork will own coins on both blockchains.
Bitcoin Cash itself was created by a fork of Bitcoin on August 1, 2017. That was also the result of a failure to agree on a change to the Bitcoin network consensus rules. One faction wanted to implement an upgrade called Segregated Witness, while the other faction wanted to prevent it. Neither side backed down and the fork occurred. Whoever held BTC at the time of the fork automatically controlled an equal number of coins on the new Bitcoin Cash network (BCH). This new conception of cryptocurrency creation and issuance became known as a “crypto-dividend” or “airdrop.” It kicked off a new phase in the unrelenting march toward the democratization of money printing. Following Bitcoin Cash came Bitcoin Gold and numerous other forks.
In 2018, Bitcoin Cash was forked, resulting in a new network called Bitcoin Cash SV (BSV). Whoever held BCH at that time automatically controlled an equal number of new BSV coins. When Bitcoin Cash forks yet again in November 2020, the same thing will happen. Whoever holds BCH at the time of the fork will automatically control an equal number of coins on the new blockchain. One of the two networks will need to use a new name and ticker symbol to distinguish it from the other. It is an interesting question to consider which of the two branches of the fork is the original and which is the new, and which exchanges, if any, will list the coins.
Whenever a coin is forked, holders of the coin automatically control coins on the new fork branch through the same private key. But if your coins are on a custodial exchange, not in your own wallet, then you cannot have full assurance that you will be able to access the new fork coins that are rightfully yours. The custodial service may decline to support the new blockchain, and you would have no recourse to take possession of your coins and sell them, as should be your right.
One of the most valuable capabilities of a physical cryptocurrency wallet like Ballet is that users have full control of their own private keys. When a fork or airdrop occurs, Ballet wallet users automatically have full possession of the new coins created. The Ballet Crypto app makes it easy to access and move these new coins, and we are committed to support every fork and airdrop for which there is sufficient interest and technical stability. With most other software and hardware wallets, the process of extracting newly-created coins from forks and airdrops is complex and risky. Many people have lost significant funds when attempting to access the new coins from forks and airdrops. So if you are not an expert, a Ballet wallet is the best way to securely store your cryptocurrency while maintaining the ability to safely and easily access your future crypto-dividends.
If you have coins in another crypto wallet that doesn’t support a new fork or airdrop, you can use the Ballet Crypto app to conveniently import that wallet and all the accumulated crypto-dividends that we support to another wallet of your choice. Then you are free to use, trade, or sell your new coins as you wish. The entire process of importing a wall can be completed in only a few minutes. The way Ballet handles blockchain forks and airdrops for our customers is yet another reason why we believe Ballet products offer the EASIEST method of cryptocurrency cold storage.