Safe Bitcoin Storage and August 1st - What you need to know !
What will happen to Bitcoin on Aug 1st 2017 ?
How to control your wallet keys for safe bitcoin storage?
image source: engadget.com
Since it is just a few weeks before August 1st 2017, the major question and concern of all the bitcoin holders, is what will happen in that date and what we need to know?
- August 1st will be an important moment in the history of Bitcoin and potentially all of cryptocurrency.
- What basically will happen that date is that a majority of the bitcoin nodes will try to force the miners to implement a protocol upgrade proposal and multiple things can happen.
- No one knows for sure what the outcome of the 24 hours prior to August 1st, as well as the days after that date, will bring.
Our main concern should be a possible chain split after a fork, that will result in two different tokens. Exactly as it happened to Ethereum last year and other cryptocurrencies too. There is also a big chance for bitcoin to lose its value after a chain split.
"During a chain split is very important to control your wallet keys that will allow you to have the same balance on both chains"
If you don’t control your keys during a chain split three main things may happen:
- Your bitcoin balance will stay the same and you will be able to use that bitcoin token as usual
- Your bitcoin balance will be zero over night since your wallet chose the wrong chain
- Your wallet provider will offer you a chance to keep your token balance on both chains or to choose one of them
You can read the full article by Knut Svanholm in hackernoon and read more for what exactly will happen to Bitcoin on August 1st in this article.
How to control your wallet keys for safe bitcoin storage?
There are many ways for safe bitcoin storage but i will focus on the " secure paper wallet " that requires very little technical skill. In Bitaddress.org you can find an Open Source JavaScript Client-Side Bitcoin Wallet Generator.
Single Wallet
"Print your wallet then store it in a zip lock bag to keep it safe from water. Treat a paper wallet like cash"
Paper Wallet
"Print your wallet then store it in a zip lock bag to keep it safe from water. Treat a paper wallet like cash "
USAGE
TIP !
You can import your generated private key into another wallet, and confirm that it gives you the same bitcoin address as the one bitaddress.org gives you.
If you liked my post feel free to leave your comments.
Thanks for reading
DigitalKing
Great effort man ,keep sharing , upvoted
I am glad that you found my post helpful @ehujra. Thanks for the upvote:)
Followed and Upvoted! Great Post by the way, definitely will come in handy
Thank you @steemitguide . I am glad that you liked my post!
Great tips, but the biggest question of them all is: what happens to bitcoin's value after Aug 1st? If the whole crypto market implodes as investor confidence is lost, storage won't do much to protect the value of the coins themselves. I guess one way to hedge is to diversify into fiat and alts.
This is an option in such case @techwizardry and i agree with you. Thank you for your comment.
Everyone is talking about controling keys, what keys ? do you mean by that password to the wallet ? I have no idea and I am worry about my bitcoin in xapo wallet, where better to save my bitcoin ? What key are you talking about ?
Xapo controls your keys "Private keys to Xapo accounts are never given out to anyone - they are kept in a safe place for you..." see here: https://support.xapo.com/where-is-my-private-key
You do not control your keys. Paper Wallet is a solution as i describe in the post.
What about this article ? : http://www.newsbtc.com/2016/12/11/bitcoin-users-stop-using-bitaddress-org-look-alternatives/
They are saying if we use BitAddress.Org we will be easily hacked
Very helpful friend. Thanks for this.
Thank you @duckmast3r. Just tried clear up some things.
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