[2017-06-01] A Bitcoin Beginner’s Guide to Surviving the BIP 148 UASF

[bbc.reporter]

This guide will teach you how to store your bitcoins and also show you what to do in case of a blockchain split when UASF starts activating on August 1.

To oldtimers of cryptocoins, please give us some advice on what to do. Should we keep holding on to our bitcoins or should we hold a safer coin like litecoin for a while?



There is a chance Bitcoin will experience a chain-split on August 1st. A segment of all Bitcoin users is committed to activate a user activated soft fork (UASF) as described in Bitcoin Improvement Proposal 148 (BIP 148). Specifically, they will reject any Bitcoin blocks that do not signal support for Segregated Witness (SegWit), the centerpiece of Bitcoin Core’s scaling roadmap.

If a majority of miners (by hash power) does not signal support for SegWit on August 1st, but at least some do, Bitcoin’s blockchain will split in two. In that case, there would be two types of Bitcoin tokens, which we’ll refer to in this article as “148 BTC” for coins on the soft forked chain, and “Legacy BTC” for coins on the chain that did not activate the soft fork.

Read everything https://bitcoinmagazine.com/articles/bitcoin-beginners-guide-surviving-bip-148-uasf/

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[BurtW]

HOLD.  Wait for the dust to settle.  Then you will have twice as many coins as before - just two types!  Then you can keep both types of coins or sell of one type to consolidate into the other type.  Should be fun.

[bbc.reporter]

It might also be good to sell some at the present price and buy back after August 1, both as a safety precaution and as a speculation move by buying at lower prices. The problem with it is you will be holding fiat in an exchange.

[BurtW]

It might also be good to sell some at the present price and buy back after August 1, both as a safety precaution and as a speculation move by buying at lower prices. The problem with it is you will be holding fiat in an exchange.

If you sell BTC then you will have less BTC so then you will end up with less of the new alt coin due to the split. 

My advice is to hold, wait for the split, this will maximize the number of alt coins you get, then later decide which coin is going to be "Bitcoin" and which one is going to be the alt, sell the alt, buy more "Bitcoin" with the money you get from selling the alt.

[1Referee]

If you sell BTC then you will have less BTC so then you will end up with less of the new alt coin due to the split. 

My advice is to hold, wait for the split, this will maximize the number of alt coins you get, then later decide which coin is going to be "Bitcoin" and which one is going to be the alt, sell the alt, buy more "Bitcoin" with the money you get from selling the alt.

I agree. In case a chain split has become reality, and people start buying Bitcoin Core/Segwit, the exchange will be the real winner. People get sent the Core/Sewit coins, while the alt remains in the exchange's pockets. It will make exchanges the largest holders of the alt-Bitcoin, which will centralize that entire market. It's always the best to keep your coins offline, but just before things start to get serious, it's important to immediately put this in action. People not doing it are just stupid.

[Carlton Banks]

If you sell BTC then you will have less BTC so then you will end up with less of the new alt coin due to the split.  

My advice is to hold, wait for the split, this will maximize the number of alt coins you get, then later decide which coin is going to be "Bitcoin" and which one is going to be the alt, sell the alt, buy more "Bitcoin" with the money you get from selling the alt.

I agree. In case a chain split has become reality, and people start buying Bitcoin Core/Segwit, the exchange will be the real winner. People get sent the Core/Sewit coins, while the alt remains in the exchange's pockets. It will make exchanges the largest holders of the alt-Bitcoin, which will centralize that entire market. It's always the best to keep your coins offline, but just before things start to get serious, it's important to immediately put this in action. People not doing it are just stupid.

Don't forget that alt-Bitcoin (aka legacy-Bitcoin) might become Barrycoin-forked (i.e. Segwit 8MB) before too long also, as there it's unlikely there will be a development team working on the legacy 1MB Bitcoin software in the event of 148's success. There's already some Barrycoin coding going on, apparently.

Thanks for making this so clear, 1Ref and BurtW (nice to see you presenting a genuine appraisal of what's going on, Burt)

[TraderTimm]

My understanding is to simply hold your coins in your own personal wallet, not on an online service or exchange.

Do not attempt to spend your coins during a split, no matter how tempting some of the more idiotic "strategies" posted seem. (In other forums.)

Longest chain wins, just like the periodic re-orgs that Bitcoin goes through on a daily basis.

[cockers]

Good read and good info there OP. Though I still don't think there wold be a split any time soon.

[bbc.reporter]

My understanding is to simply hold your coins in your own personal wallet, not on an online service or exchange.

Do not attempt to spend your coins during a split, no matter how tempting some of the more idiotic "strategies" posted seem. (In other forums.)

Longest chain wins, just like the periodic re-orgs that Bitcoin goes through on a daily basis.

Thanks for the advice everyone. I am holding all my coins in an Electrum wallet right now. I guess witnessing what will happen on August 1 could either be a nail biting experience or it could be nothing at all. But how would that affect the price? Maybe go up since some people would want to buy more and split their coins?

[Carlton Banks]

But how would that affect the price? Maybe go up since some people would want to buy more and split their coins?

It makes sense that the price will increase in the lead up to August 1st, as people will want to load up in order to speculate on the 2 forks.

After 1st August, seriously volatility should be expected, but that includes ups and downs (and maybe a few somersaults thrown in). The intensity of which will most likely be determined by the success of the level of support for the Segwit Bitcoin softfork. I'll be supporting it, in as far as I plan to be using it. But it's not the only game in town, BIP149 apparently has stronger developer support than BIP148. I guess we'll have to wait to see.

[ivanpoldark]

This split of Bitcoin technology makes me think right now about future of bitcoin as a reserve currency. The only real value in bitcoin comparing to other altcoins is in it`s originality, or there are other essential advantages?