In these last few months, we have seen a few Bitcoin-related projects taking off trying to introduce new features to overcome Bitcoin’s limitations. In August, it was the first time we saw a dissident faction of Bitcoin developers creating a new payment network called Bitcoin Cash – Ticker BCH, which has sparked off a wave of airdrops and ‘altcoins.’
In theory, there already a lot of Bitcoin-based spinoff currencies which were called altcoins. On the contrary, these projects are all trying to introduce new features that would be capable of surpassing Bitcoin limitations; however, lately what we have seen is an entirely different thing.
Bitcoin Spinoffs and ‘Dividends’
The Bitcoin Cash project introduced modifications to the Bitcoin code and changed it so that it could support bigger block sizes. By introducing a bigger block size, the network would be able to include a lot more transactions in one single block, and with that, it was solving the scalability problem. To address this problem, Bitcoin Cash was created, and it seems that its spinoff actually went quite well, with the coin gaining a lot of followers and consequently, its price going up to surpass the $1000 mark.
The main difference BCH had from other Bitcoin spinoffs was that it was directly created out of the Bitcoin Blockchain, and as so, there was a network split which enabled all those who already owned Bitcoin to own the same exact amount of Bitcoin Cash. This was basically free money created out of thin air.
Having that kind of move on the table, it was inevitable that others would try the same thing. At the beginning of November, another team of developers publicly launched a new fork. This made it the third split of the Bitcoin network, and the newly launched coin was called Bitcoin Gold – Ticker BTG. This Bitcoin fork version changed the current mining process by introducing a memory-hard algorithm that in the hopes that it will make it resistant to dedicated mining Hardware. Bitcoin Gold developers say they are trying to bring back Satoshi’s Bitcoin mining original idea, making it once again possible for anyone to issue coins using their home PCs.
The idea of bitcoin forks as dividends has lead to the creation of indexes to track the value of bitcoin combined, if the user kept all of these spinoffs. For example, BambouClub created the Cold Storage Index to track the value of BTC, BCH and BTG combined and aid investors with asset allocation.
Much like what happened with Bitcoin Cash, Bitcoin Gold split off from the main Bitcoin blockchain, allowed anyone who owned a normal bitcoin to get the same amount of “gold” Bitcoin after the fork. However, unlike Bitcoin Cash, right after the fork, the team behind BTG mined approximately 100,000 bitcoins before opening the network to the public. The Bitcoin Gold network is evaluated in $4.39 billion making it the eighth most valuable cryptocurrency according to Coinmarketcap. BTG is now worth around $260, so the team basically created a $27 million fund for itself, stating it would be used to support the development of the project.
Now, a new batch of projects has already announced new forks. There’s Bitcoin Clashic, Bitcoin Platinum, Bitcoin Silver, Bitcoin Uranium, Bitcoin Cash Plus, Bitcoin Diamond, Super Bitcoin, and even Bcash. No one knows how many more developers are going to try the same move. With the potential of creating money out of thin air, the potential to see new Forks coming our way is immense, but in theory, almost all of these projects will not succeed or will die before the takeoff…
Read Full: Bitcoin Fork Mania is Bound to Take Off