Bitcoin Cash – arguably the most successful hard fork on the Bitcoin blockchain – has quickly established itself among the market-leading virtual currencies. Since the hard fork occurred in August, Bitcoin Cash has skyrocketed in value. This attracted the attention of many virtual currency users and investors, causing many to look at likely future forks and wonder how they will impact the future of the virtual currency markets.
With several hard forks on the horizon, investors are on the lookout for the next big value in Bitcoin derivatives. Bitcoin Interest, a new Bitcoin hard fork that provides interest-bearing features for virtual currency holders, has attracted the attention of many bullish investors. Unlike many of the other Bitcoin Forks, Bitcoin Interest creates a real value for both individual investors and the crypto market as a whole.
Bitcoin Forks Continue to Develop Blockchain Technology
Bitcoin has inspired several spinoff currencies, both in the form of new coins and hard forks from the Bitcoin blockchain itself. While both Initial Coin Offerings (“ICOs”) and hard forks result in the creation of a new cryptocurrency, hard forks create an immediate value for Bitcoin holders. This is because a hard fork is basically a software update for the evolving Bitcoin blockchain designed to increase the security, ease of use, or efficiency of the currency. As a result, many experts believe they are necessary for maintaining and improving the performance of the decentralized platform.
There are several hard forks coming up in the near future. Eight forks are planned before the end of the year, and many more are sure to follow suit. This is a positive development for the market as a whole, but how will individual investors be impacted?
Bitcoin Holders Benefit from Hard Forks
Bitcoin forks aren’t just good for the market as a whole. In fact, Bitcoin holders benefit a great deal from hard forks because they receive new coins when a hard fork occurs. Because a hard fork is essentially a split in the Bitcoin blockchain, anyone with Bitcoin in their wallet at the time of the fork is rewarded with an equivalent amount. So, if you had one Bitcoin in your wallet on August 1st, you would receive one Bitcoin Cash token when the fork occurred.
The wild success of Bitcoin Cash offered a valuable proof of concept to blockchain entrepreneurs. Bitcoin Cash, which was just released on Coinbase to huge demand, now has a market value of around $70 billion. Investors who missed out on the August fork are now looking to future forks, hoping that Bitcoin Uranium, Bitcoin Cash Plus, Bitcoin Interest, or others will be the next big thing in crypto markets.
Bitcoin Interest Stands Out Among Planned Bitcoin Forks
The runaway success of Bitcoin Cash has inspired may enterprising tech entrepreneurs. Anyone with the programming skills to shore up effective mining, transaction verification, or security on the Bitcoin blockchain can create a hard fork that ultimately takes over Bitcoin’s dominant market share.
However, as more forks come up on the horizon, how can investors compare the value of one new fork with another? Some forks have garnered criticism as being unfair for investors. For example, Bitcoin Gold – the second hard fork on the Bitcoin blockchain – included a substantial premine period, causing many to believe the fork was nothing but a money grab. Regardless, Bitcoin Gold is now among the top ten virtual currencies on the market, beating out other popular coins like Monero and zCash.
Anyone who holds Bitcoin receives a one-to-one payout on any new coins created by a hard fork on the blockchain. This may seem like an instant value to Bitcoin holders. However, this isn’t always the case. Some of these new projects – like Bitcoin Uranium, which will soon create the BUM coin through a hard fork – seem like a joke. Even Bitcoin Gold users have alleged hacking, fraud, and hidden fees associated with the coin.
Unlike many planned Bitcoin forks, Bitcoin Interest is providing a clear value to the virtual currency market. Specifically, Bitcoin Interest pays interest to virtual currency holders much like a traditional interest-bearing bank account.
Interest-Bearing Virtual Currency Accounts Through Bitcoin Interest
Banks incentivize people into depositing funds by paying interest based on the amount of money the customer has on deposit. This everyday benefit enjoyed by most traditional bank customers has not been available to virtual currency users – until now.
Bitcoin Interest offers the interest-bearing benefits of traditional bank accounts with the security and efficiency of virtual currency. Once the fork occurs, Bitcoin holders will receive Bitcoin Interest Coins (“BCI”) in a 1:1 swap. Bitcoin Interest coin holders can then receive monthly interest on their coins. The interest earned on BCI depends upon the amount of coins the user decides to park, as well as how many coins are parked overall in the active time period.
Bitcoin Interest Stands Out as a Hard Fork with Built-in Value
Bitcoin Interest stands out among the growing blockchain technology industry because of its relatively low risk. Volatility and speculation have been substantial obstacles to most blockchain companies. Bitcoin Interest offers a service with inherent value – interest payments on parked currency. Offering an interest-bearing virtual currency service is an innovative way to encourage people to hold virtual currencies rather than trading them, mitigating the overall volatility in the market. This may prove be one of the most valuable forks on the Bitcoin blockchain we’ve seen yet.
Anyone who currently holds Bitcoin on a supported wallet or exchange like HitBTC can look forward to receiving BCI coins when the split occurs in January of 2018, as well as the interest payments that will follow. Because this hard fork will impact both your individual investment and the market as a whole, be sure to keep an eye out for Bitcoin Interest in the coming weeks!