Bitcoin has become synonymous with cryptocurrency over the years, but it has evolved to include Bitcoin forks to maximize functionality. There are soft and hard forks depending on the split attributes. These different types of forks can give distinctive market results and can be dependent on current market prices. Numerous currency exchanges carry Bitcoin forks depending on where you are located in the world.
Soft Bitcoin Forks in the Market
A soft fork is explained by a change in the network protocol when 2 or more blocks are the same height. A soft fork event is essentially to add new features to the original software. Additional attributes such as reversing hacking events or fixing software bugs are essential as it grows over time and evolves. These forks can influence the validity of the network rules.
There are several soft Bitcoin forks known since the original BTC launch, including:
• Bitcoin Classic
• Bitcoin XT
• Bitcoin Unlimited
Hard Forks in the Market
A hard fork can be noted when the block size is not identical, causing an issue with backward compatibility. Hard forks completely change the network rules and are not compatible with the previous network software like soft forks are. Upwards of almost 20 new coins were created in 2017 due to hard forks from the BTC network. While many of these are no longer available, investors can still find some viable crypto assets from these hard forks.
The following Bitcoin forks have made headlines as they split and became well-known in the cryptocurrency world:
• Bitcoin Cash
• Bitcoin Gold
• Bitcoin SV
• Bitcoin Private
• Bitcoin HD
• Bitcoin Rhodium
Bitcoin Forks in the News
The cryptocurrency world was focused on the major halving event this past May 2020 giving investors hope for progressive gains. During this time, Bitcoin forks did not perform as they regularly have been. As the dust settles and the market relaxes, crypto enthusiasts are beginning to see the comeback of Bitcoin forks.
By examining historical data of 2020 so far, Bitcoin forks have shown to outpace BTC significantly these few short months. One reason for this significant movement is explained as lower market capitalization assets tend to outperform Bitcoin during bull runs. Crypto gurus are anticipating a strong market presence of Bitcoin forks as the year progresses.
Are Forks A Good Investment?
With any digital currency asset, research is needed to find the sound choices for your portfolio. Where one may have great success with fork investments for some time, you might not achieve the same results later. As it is with any investments, careful consideration is needed when making digital asset portfolio decisions.
Bitcoin forks have their own following as they continue to branch off the network. As BTC continues to aim for the $10,000 mark, forks can gain their momentum in the market. Although many don’t measure up to how Bitcoin (BTC) is performing, they could still prove viable digital assets. Investments are all about diversity and maintaining BTC forks could give your portfolio the variety it requires.