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What is a FORK in cryptocurrency? The EASIEST explanation

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A fork is like a modified 2.0 version of a Blockchain software.  For example :Windows 7 and Windows Vista (urgghh )

What is a FORK in crypto? For NON-TECHIES

Each cryptocurrency is it’s own blockchain and a fork is like an updated version of a blockchain software.

Bitcoin is a blockchain and most forks are a copy of the Bitcoin software except with improvements and “tweaks

 

What is a FORK in cryptocurrency?

In crypto, a fork is an Altcoin.

A fork is like a modified 2.0 version of a Blockchain software.

For example :Windows 7 and Windows Vista (urgghh )

However, sometimes not everyone thinks the newer version is better and prefer to stick to the old one.

That is why forks get created.

 

Popular crypto forks include:

 

What is the purpose of forks?

Bitcoin is the first cryptocurrency every created and is referred to as “King” and “digital gold”.

It has several flaws which prevent prevent people using it in everyday transactions.

The biggest problem people is that Btc is difficult to use for everyday small transactions.

While investors love Bitcoin, here are some other common reasons mass adoption is not happening

  • Not easy for non-techies to understand
  • BTC prices can crash 50%-70$ overnight
  • Lack of regulation
  • Too many zeros

 

Are there any opportunities in forks?

The reason that forks get so much hype because when a new fork emerges from a cryptocurrency, very often, existing holders get those the fork cryptos too.

That is why, the price of the of the original crypto tend to pump.

 

The risk of investing in forks

Depending on the market sentiment (Bear or bull), forks usually result in pump and dumps.

This means that the investors who buy at the top end up with the short end of the stick.

  1. 90%-97% dump: The investors who got the free tokens cash usually cash out resulting in prices crashing
  2. Exchange delisting: Once hype dies over a project, transactions decrease resulting in cryptocurrency exchanges delisting them.

Hard Forks

A fork is similar to a software update.

For example,  1984 Macintosh   can not run the software of the IphoneX.

So some devs of the cryptocurrencies continuously update their algorithms to make to make the ASIC miners obsolete.

 

Where to invest in forks?

The most popular (hyped forks) usually happen on Binance, however, some may occur on Bybit too.

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