Bitcoin prices (and cryptocurrencies prices in general) have been dropping like a stone as people take their all time high profits off the table. There's nothing wrong with taking profits when the price is high.
Some people panic when the price of Bitcoin drops and with the new hard fork approaching are cashing out before it drops further.
With all this selling the price is on sale right now. Good time to buy if you're plan is to hold for the long term.
If you're like me and plan on holding Bitcoin through the upcoming hard fork, there's a few things you should know to keep your funds safe throughout the transition.
What If Bitcoin Splits Into Two Coins?
First off, there is a possibility that Bitcoin could split into two different coins after the hard fork if the miners don't come to a consensus before the fork.
There are two different ideas of how Bitcoin should proceed with 85% of the miners wanting to implement SegWit2x (same bitcoin or BTC) and 42% of miners wanting to implement Bitcoin Unlimited (the new coin BU).
If this split into two coins does occur here is what you need to know. The split would create two different Bitcoin networks and two different coins. You would be holding two different assets.
Soon after this hypothetical split happens the market will determine the value of each coin and you will be able to spend the total amount of coins you have on each network.
You can spend these coins on both networks as long as you personally hold and control your private keys to your coins.
If you're keeping your bitcoin on an exchange where you do not have 100% control of your private keys then you risk the possibility of having access to only one or the other coin should a split occur.
Depending on the choice the exchange holding your coins makes, you may only have those coins available to you. If the holder of your coins decides to allow coin access to both networks then you may still be able to access both networks and their respective coins.
However, if you are the holder of your coins and your private keys, then when the dust settles you will be able to access and spend both coins on two different networks.
If you're not 100% sure if you are the holder of your private keys you can store your bitcoins on a paper wallet until after the hard fork happens and the market decides which coin will prevail if the split takes place.
A great post about paper wallets can by found at How To Import Paper Wallets And Beginners Guide To Wallets --- by @heiditravels
What If Bitcoin Does Not Splits Into Two Coins?
If the split never happens then none of this matters. Bitcoin prices will take a dip and in my view will rise again after the hard fork.
It is a good idea to not do any transactions on or around the date of the hard fork which is August 1st, 2017.
If you're a long term holder of bitcoin then buying when the price is lower is a good idea. These are just my thoughts and I'm not giving financial advise. I'm just sharing what I have learned and believe to be true. Plus, just for your information I have been drinking beer while writing this post so take everything I'm saying with a grain of salt. (or a sip of beer)
Disclaimer: The investment in Bitcoin can lead to loss of money over short or even long periods. The investors in Bitcoin should expect prices to have large range fluctuations. The information published here cannot guarantee that the investors in Bitcoin would not lose money.
Here is a video that explains the hard fork in more detail and how to keep your bitcoins safe.
Pay attention because this is Important! How to keep your bitcoin safe - Andreas M. Antonopoulos
