Bitcoin is a worldwide cryptocurrency and digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto It was released as open-source software in 2009.
The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency.
Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
What will happen to my Bitcoin Mining contract? All Bitcoin (sha256) mining contracts will continue mining the original Bitcoin blockchain as before.Everybody can fork the Bitcoin protocol at any time. This does not mean that any fork has the same mining and community support that the original Bitcoin protocol has. Any fork of the Bitcoin protocol is to be treated as it’s own cryptocurrency.
I have Bitcoins in a wallet, what will happen to them? It depends on where you store your coins. If you hold them directly in your wallet with your private keys you have full control over your funds. In this case your balance from before the fork will appear in both branches after the fork, i.e., you will have the same balance of Bitcoin A and Bitcoin B.If you’re using an exchange to hold your funds, the exchange has control over your funds and you might end up owning both versions of the coin, or just one that the exchange chose to support. The exchanges have already or will communicate their procedure to you.
What will happen to my Bitcoin (SHA256) contract daily mining payouts? Nothing changes for the mining of the original Bitcoin protocol chain. All daily payouts will be processed as usual. You will receive your daily payout at the end of a mining day. A mining day starts at 00:00 UTC and ends at 23:59:59 UTC.
Do I get double the mining payout when Bitcoin forks? No. Mining is not to be mistaken with owning a balance in the Bitcoin network: The mining for Bitcoin A will not be the same as for Bitcoin B as the transactions will change and thus the hashing solutions for those transactions will be invalidated. Since we’re actively mining the original blockchain with the hashpower provided, we’re only receiving the mining returns of that blockchain that then get paid out to our users.
Will there be fluctuations in the mining difficulty of Bitcoin? There is a chance that the global Bitcoin hashrate could fluctuate as some miners switch their hashpower over to the forked protocol but it’s impossible to tell what will happen exactly.
Will you add any new Bitcoin fork as minable option to your customers? Should a Bitcoin protocol fork, e.g. “Bitcoin Cash” last for a longer period and gain interest by our clients, we will analyze and assess the possibility of adding it to the mining portfolio.
Are other mining contracts, e.g. for Litecoin, influenced by this? No – the mining of other cryptocurrencies is not influenced by a potential Bitcoin fork. However, as usual with big news in the industry, fluctuations in the market value of any coin are to be expected.
Do I need to do anything else? No. In regards of mining everything will go on as normal. However, as the fork is likely to cause disruption in the Bitcoin network, we will temporarily halt payouts and orders (with cryptocurrencies) for up to 48 hours and release all funds to your wallets as usual after the situation is clear. This is a common security practice for exchanges and other companies alike. The mining operation itself is not influenced by this and resumes as normal.