What are the Benefits of Hard Fork? (Will the price increase or decrease with Hard Fork?)

What are the benefits of hard forks? According to Coindesk, hard forks are usually considered the “easiest” way to upgrade blockchain protocols. However, this trend is changing as the Bitcoin and cryptocurrency market continues to evolve and more exchanges and developers adopt this technology. In a hackathon in 2018, mining company Bitmain announced that they had added mined blocks to a new data structure.

Both networks have supported and updated the original data – transitioning from the old chain to the new chain. These changes make it easier for them to obtain. Without such a solution, no one is allowed to make a modification. Due to some issues in the Bitcoin code, it is difficult to make the correct decision. In order to address this issue, bitfinex introduced a new version called BIP32 to improve its algorithm; the document explains why it happened. Then a hard fork occurred: “This is Bitcoin’s first soft fork.”

The purpose of a hard fork is to allow users to easily create, deploy, or run various types of applications on their platforms. When a transaction is published, it is rebroadcasted to the main network, reducing the user’s cost. However, only a few applications can work like other software did before. “If you have better tools to help expand your product,” it can attract people to visit these product stores.

Will the price increase or decrease with hard fork?

Editor’s note: This article is from 8btc (ID:bitcoin8btc), written by Wang Jiajian and authorized to be published by Planet Daily.

According to CoinMarketCap, since Bitcoin’s first hard fork on January 15, 2020, the price of Bitcoin has dropped by about 10%. However, in the past few months, the price of Bitcoin has experienced significant fluctuations for various reasons. Will the “hard fork” increase or decrease the price? With the continuous increase in Bitcoin and the decrease in block rewards, Bitcoin’s price is undergoing some unusual situations: “A hard fork is a major upgrade or network disruption.”

This makes Bitcoin’s hard fork considered one of the most serious technical issues ever, yet another major problem has occurred this time – “hard fork.” This situation is in stark contrast to the ICO craze in 2017, where the end-of-2017 ICO frenzy triggered a surge in coin prices and a large number of miners mining new tokens. Shortly after the proposal for “Ethereum 2.0” (also known as EIP1559) passed in early 2018, new blockchain projects on Ethereum began to grow on a large scale.

Although people are skeptical about the upcoming major changes, there is a widespread belief that if this hard fork event occurs, Bitcoin may have a further upward trend. So what is hindering Bitcoin’s bull market? First, investors need to note that during the current bear market, many people do not have a positive view of cryptocurrencies because they are concerned that the value of these assets will be affected, thus reducing its attractiveness as an investment target. However, as most people have said, Bitcoin’s success is not a simple mistake, and it brings greater uncertainty. On the other hand, as more and more people participate in DeFi in recent weeks and the development of DeFi applications, it is easier for people to make choices and gain more digital wealth.

When talking about Bitcoin, we should consider the following three aspects: 1. Can Bitcoin be classified as a “replaceable electronic cash system”? 2. Can Bitcoin be used for bill payments in the future? 3. When will Bitcoin become a legal currency? 4. Is Bitcoin a medium of exchange? 5. Does Bitcoin have built-in functionality? 6. Can Bitcoin achieve true trustless consensus? 7. Can Bitcoin serve as collateral or stablecoins, or even have functions similar to fiat currencies?