Bitcoin Diamond, Bitcoin Gold, Bitcoin Private, Bitcoin Atom, Bitcoin Candy, and Bitcoin Pizza are some of the 43 bitcoin forks that have emerged since the initial Bitcoin Cash hard fork in August of last year, as TNW reported. Within the past 10 months, 43 forks of the Bitcoin protocol have emerged, but cryptocurrency investors are not taking them seriously.
Fork versus Airdrop
A hard fork occurs when a miner mines an invalid block by allocating hash power into the Bitcoin protocol. For instance, Bitcoin Cash had a few Chinese mining companies like ViaBTC backing the project and hence was able to mine an invalid block to start the Bitcoin Cash chain.
But, not all of the 43 forks have hard forked the Bitcoin protocol in a legitimate way. It is difficult to imagine that Bitcoin Candy, Bitcoin Pizza, and Bitcoin God, which are apparently projects attempting to utilize the dominance of bitcoin over the market to create short-term profits, received sufficient backing from miners to mine an invalid block.
As mobile cryptocurrency wallet C.E.O George Kimionis said, the majority of the bitcoin forks are nothing more than money grabs.
“Unfortunately, most fork-based projects we see today are more of a sheer money grab. Looking back a few years from now we might realize that they were just mutations fostered by investors blinded by numerical price increases — rather than honest attempts to contribute to the blockchain ecosystem.”
In an interview with Bloomberg, Autonomous Research fintech strategy director Lex Sokolin added many more forks will emerge in the future, given that platforms like Fokgen have enabled anyone who have skills to type on a keyboard and use the touchpad to create replicas or clones of major cryptocurrencies and create “hard forks.”
However, the term “clone” used by Lex Sokolin is exactly why these supposed “hard forks” cannot be considered as hard forks.
The strategy often employed by individuals and organizations that create replicas of bitcoin are simply copying the codebase of bitcoin, changing the project name, implement a minor change that is unnoticeable, and rebrand it as an entirely new project that has hard forked the Bitcoin network.
In reality, these projects are not hard forks of the Bitcoin protocol, because they never mined an invalid block on the blockchain of bitcoin to initiate a new fork. Rather, these are airdrops; projects that distribute newly created coins to the existing base of btc to obtain a base consumer base to start up its project.
Both BTC and BCH will continue to hard fork and >10% of the value of each (if held today) will reside in new offshoots,” said Paul.
Rightfully so, cryptocurrency investors are not taking clones and replicas seriously. As of June of this year, apart from Bitcoin Gold, Bitcoin Diamond, and Bitcoin Private, no other fork remains in the top 200 blockchain networks by market valuation.