As some of you may be aware, the Bitcoin community has been rife with drama, community splits, censorship and conspiracies. It can be quite tiring to keep up with all of this information so here is a short blog post to summarise for those interested.
Tonight will (likely) see a user activated soft fork occur on the Bitcoin network. Once the chain split occurs, miners will choose the most profitable fork, which will declare the winning coin.
Existing owners of Bitcoin (if controlling their own private keys) will see them owning Bitcoins on both forks. People complain about price volatility in cryptocurrencies, but that will (probably) all pale in comparison compared to the next couple of weeks. The market’s price self discovery will become a lot more aggressive, lending rates have shot up to 5% per day on Poloniex, and both sides are bracing for impact.
Another interesting thing are the new futures that are now tradable on the exchanges. Called BCC, or Bitcoin Cash, the tokens represent what the members of /r/btc (reddit) wish to see in the cryptocurrency. At first glance it may seem like a meaningless grab for power by the minority, but the price of BCC shot up to $900 per token a week ago in anticipation of tonight’s event.
The next couple of weeks will hopefully see a conclusion to the constant back and forth, slandering and censorship between the opposing camps.
But probably not.
Some further reading: