Welcome to the roller-coaster world of digital assets! Just about everyone in in the cryptosphere has read at least something terrifying about the possible fate of Bitcoin on August 1st.
Will there be a hard fork or a soft fork? If there is a hard fork, how will separating Bitcoin into two digital currencies, Bitcoin Core (the group who will keep the symbol BTC) and Bitcoin Unlimited (presumably to be known as BTU) affect those holding BTC? Does it matter how and where one holds their Bitcoin? How wild will fluctuations in price be? To sell or to hold — that is the question.
First let’s unravel a bit of the mystery about the situation and look at options for Bitcoin.Then we’ll examine how we at CORION have future-proofed our unique cryptocurrency against issues like this.
You may have heard that Bitcoin miners have been in vehement disagreement over how to scale Bitcoin for its users, and it seems there is no real consensus even now. With Bitcoin’s rise in popularity, it has also gained its current limitations: transactions have become slower and more expensive. Briefly speaking, here is a summary of the difficulties facing both sides.
The Bitcoin network is facilitated by individual miners and mining pools who are rewarded with Bitcoin when they process transactions. The miners are also the only ones in the Bitcoin network with the power to vote on changes within the system. (Mining is a billion dollar industry, involving mostly mining pools where huge rigs are kept and run.)
At CORION, rather than focus all this power in one place (with the miners), we have democratized the system of rewards, sharing them with all who use and hold CORION coins — consumers, merchants and investors alike. This further decentralizes our platform and allows a fair system of incentivization for use of our coin in the real world.
The other crucial aspect to the Bitcoin platform is the presence of full nodes necessary to keep track of every transaction on the network. Transactions are processed by miners and recorded by full nodes. In the event of a shortage of full nodes, the transactions or verification of who owns what, could be changed or hacked, jeopardizing the entire network. There is also fear of a shutdown by governments or other actors if the full node count drops too low. Recently, the node count dropped from 100,000 to a mere 6000, so this concern is justified.
The problem is that since transactions are limited to 1MB in block size, and the demand for more transactions has increased, many are detained for longer periods of time. The two proposed solutions are 1. by Bitcoin Unlimited, to increase the block size, or 2. by the Bitcoin Core Group, to introduce Segregated Witness (Segwit), which enables a method of off-chain scaling. Unfortunately, both proposed solutions still pose problems
The Bitcoin Core supporting Segwit maintains that block size should not be increased since then, because too much data will be stored and it will be economically difficult to maintain, enabling even fewer nodes and endangering the network. Bitcoin Unlimited proponents argue that Segwit doesn’t resolve the problem immediately, since it will take 1 to 2 years for the entire network to start using it. Bitcoin Unlimited also alleges that certain future use cases, such as blockchain-based notaries, will be impaired if just Segwit is implemented.
Ultimately, an agreement, such as the Segwit2x soft fork, which is an off-chain solution that also signals a block increase to 2MB in three months, will most likely be reached, but this does not give holders of Bitcoin much comfort. If SegWit2x fails, there will be a chain split.
This brings up the question of what your current Bitcoins will become once the split occurs. Will you be holding BTC or BTU? That depends on where you store your Bitcoins. Certain online wallets/exchanges, such as Coinbase, have already stated which type of coin you will be holding after a decision is reached on August 1st. If a holder of Bitcoin leaves coins on a wallet/exchange online, he or she will have no say in the matter. With CORION, however, your coins are always kept safe in your CORION wallet — the wallet is provided by the same entity managing the release of coins. You never need to worry.
And what of the value of Bitcoin once an agreement has been reached on August 1st? How high or low it will go, no one can accurately speculate. The last three weeks of volatility may not be an indication of the roller-coaster ride ahead for holders of Bitcoin.
One way you can be assured stability in the cryptocurrency you are holding is by joining us at CORION. With our innovative system of inflation and deflation control, you can feel confident that your currency is secure and stable.
With CORION, consumers, merchants and investors don’t need to stress about the wild fluctuations of an unpegged cryptocurrency. Not now, not on August 1st. Not ever.
Want to join the CORION revolution? Get in on our Token Generation Event (also called an ICO by the media) at https://www.corion.io/buy to claim your bonus and your peace of mind!