We have all been hearing about the coin-split for a while now, so there are possible chances that it could happen any moment. While most miners are choosing to side with Bitcoin Unlimited and mine blocks larger than 1MB, some are sticking with the current Bitcoin asset aka, Bitcoin Tokens. This could lead to the network being split into two, aka “hard fork”.
Before the Split
First of all, be aware that this is a high-risk zone. Do not be holding onto more value in bitcoins than you are willing to lose. If you are planning on holding onto your bitcoins, then keep your private keys secure and under your control. Try investing in a hardware wallet, like TREZOR, Ledger Nano S etc. These will keep your private keys secure and provide you a backup PIN in case you ever tend to lose them.
BE SURE TO MAKE A BACKUP OF YOUR PIN.
You must not skip this step while installing any wallet.
We are not sure of when the fork would take place, but indications are that it could take place at any time and things could get messy from a scale of a few hours to maybe even days.
As such, our advice is that you don’t make any bitcoin transactions during that time period, at least not until we’re sure of what the post-fork situation looks like.
During the Split
There is no set date given as to when the “split” could take place, which means that a fork could happen at any time. However, if BU does fork, things would get complicated for a while. For eg, post-fork, transactions will look the same on either side. If a transaction is picked up by one end, there are chances that it’d be picked up on the opposite as well and may be valid for both chains. This is called a “replay attack” and unfortunately, BU does not include “replay protection.” Ultimately, spending coins on one end could lead to the same amount being spent on the other.
What you should do is, avoid sending any transactions until the post-fork situation is clear to everyone and you are sure that Bitcoin Unlimited is a winner.
After the Split
In the future, if both coins survive and you still have control of your private keys, you will have coins on both sides of the fork. But, it will be tricky to spend coins on one chain without unintentionally spending the same amount on the other end.
A solution for this would be to mine new bitcoin value after the split. If the coins are not present on either end, then no one can spend them.
Some exchanges might even set up coin-splitting services that will credit your account with BTC and BTU. Perhaps you might have to upgrade your wallet.
Also, if neither of these survives, your private keys will probably become worthless.
No one clearly knows what the post-fork scenario would appear to be, so as of now, we simply wait and see.
Hope for the best!
Tags: Bitcoin generator