The 3 Forks of Bitcoin and What you should Do.
The 3 Forks of Bitcoin and What you should Do.
Avoiding Financial Loss and Network Disruptions
Photo Credit: BBC
Is this coming battle simply a proxy war between the CIA, The Federal Reserve Board, The Chinese & The Central Banks?
The Players
Photo Credit: news.bitcoin.com
Bitcoin Core Developers Group
Lead by Wladimir J. van der Laanand (not pictured) and funded in part by the Massachusetts Institute of Technology (MIT) from the Digital Currency Initiative funds.
Funding comes from a variety of industry sources including mining giants Bitffury, Bitmain and increasingly from Blockstream.
Blockstream
Photo Credit: CoinTelegraph
Montreal based Blockstream was founded in 2014 by Bitcoin Core developers and several others. Blockstream's main mission is the realization of sidechain technology.
Bitcoin Core developers who are working for and receiving money from Blockstream have an inherent conflict of interest.
Bitmain and the Chinese Mining "Cartel"
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Although some of the strengths of Bitcoin is having the Network distributed globally, not owned by any one person, corporation, government etc. The simple truth is 72% of the Network Hashing Power is held by Chinese Miners, who are ostensibly lead by Bitmain Founder and CEO Wu Jihan.
Bitmain also manufactures over 70% of all Bitcoin mining hardware.
The CIA, Central Banks, Globalists, etc.
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Many have speculated that the influence of private university, MIT and Blockstream. Ssome believe that their goal is to co-opt Bitcoin by using the Core Developers as willing or unwitting tools. The ultimate goal being to disrupt Bitcoin and see it replaced with Bank created Ripple or JP Morgan backed Ethereum.
Playing Chicken with Our Money
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On August 1st - A New Chapter in the History of Bitcoin will begin.
The Bitcoin Blockchain will see the implementation of a User Activated Soft Fork (UASF), known as BIP 148.
This software update will be deployed by the Bitcoin Core development group lead by Wladimir J. van der Laan The larger goal here is to use FORCE, compelling miners to implement Segregated Witness (SEGWIT) in the near future.
According to the developers, 10% of the Network Nodes are now signalling readiness to accept only transactions that support BIP 148.
Chinese Miners have signaled their refusal to implement BIP 148.
The network is now on track to experience a Soft Fork of perhaps 3 versions of Bitcoin; 10% (or likely less) supporting BIP 148, 70% (likely more) Chinese Miners and the remaining 20% sticking with the legacy Blockchain, conducting business as before and waiting for proverbial dust to settle.
Upping the Ante
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On June 14th, Bitmain and their allies threatened to implement a Hard Fork, permanently splitting the Bitcoin Network in two (or more) pieces.
If BIP 148 deploys as planned on August 1st, 12 hours later, all Chinese Miners will go offline for 3 days.
The immediate results will be a complete 100% shutdown of Trading, ATM Machines and very likely the ability convert your Bitcoins to Fiat currencies, like U.S. Dollars. Obviously merchants will not be able to accept Bitcoin and will be forced to seek alternatives like Litecoin or Dash.
Don't Worry, it Gets Worse
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After 3 days they will allow their miners to rejoin the new network, increasing the Bitcoin block size from current 1 Megabyte to 8 Megabytes with no future hard coded limits on block size.
During the 3 days of network shut down, Bitmain will privately mine up to around 5,400 coins on the new network ($11.3 Million USD), which they will own and control. In addition to getting "free money", the new hard fork will have 3 days of solid block history to bolster their network.
What about my Coins
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All coins owned before any soft-fork or hard-fork are secure, provided you have control of your private keys. Coins need to be stored off any exchanges, in a secured software or better yet, a hardware wallet.
New coins after the split will need to be sorted out and price discovery and validity will be determined by the free market.
The Big Fall
As I write thing, Cryptocurrencies are experiencing a downward adjustment in price. Perhaps due to the concerns over a hard fork or perhaps other factors are in play.
Ask yourself this question. If all Bitcoins are frozen for three days and merchants won't/can't exchange them for goods and online currency exchanges won't exchange them for Fiat money, will that cause the price of Bitcoin to go up or to go down???
Business Not Religion
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"O.K. I have had Bitcoin since the beginning, I have faith it is going to change the world and I'm never selling mine as they are going to be worth millions per coin someday, etc, etc, etc."
Many religious figures have given their lives for their faith and later been canonized as Saints. They died for their beliefs. In business, we call this "a fail". Bitcoin is business not a religion.
It is O.k. sell all or part of your Bitcoin holdings to protect your net worth. In fact,maybe when the dust settles and all these network issues are resolved, you can buy even more Bitcoins than you had before.
Or you can be that person who brags, "I used to be a millionaire back before the great split." Your choice.
The Fight is Coming
August first is coming and BIP148 is 100%. certain.
The smallest stake holders, the Bitcoin Development Team are going to implement BIP 148 whether everyone wants it or not.
Bitmain and the Chinese miners have billions of dollars invested in mining, manufacturing, currency exchanges and mining pools. They have good reasons to want to be free of the self-appointed development team and to govern themselves and protect their businesses.
The largest stake holders of $40 Billion Dollars in Bitcoin want their wealth preserved and the network to improve and see the acceptance of Bitcoin grow. These coin owners have the most to lose in this fight and they have the least amount of influence over the direction and the outcome of the future of Bitcoin.
The Globalist Bankers and their loyal Toadies have made small (for them) inroads into the cryptocurrency markets and are watching and perhaps enjoying the BIG SHOW. No matter what happens, they will be just fine.
Eyes Wide Open - You have Been Warned
Note: This post is for informational purposes only and represents the authors opinion.This isn't intended as investment advice. Readers whom wish to invest in precious metals and other assets should conduct their own due-diligence, including consulting with a qualified investment adviser.
If you have any questions, don't hesitate to ask. And if you liked this post please VOTE UP, RESTEEM, COMMENT and FOLLOW @clearshado for more Insightful Commentary in Support of Liberty and Freedom, Natural Rights, Alt Currency, Preparedness, Survival & Guns.
There will be a resolution somehow. The question is whether it will result in a fork and if so, which fork will prevail (aka, come out as more preferred by the market).
Man your Battlestations!
I think the "Winner" is the people who control the hash rate and production of Bitcoin miners. They have billions invested vs. a small group of developers trying to dictate what they believe is best. The loser is always the customer or the investor. Protect yourself and tell your friends.
Thanks for reading and commenting, I really appreciate it.