Effect of the cancelled HF on altcoins

in bitcoin •  7 years ago 

Am trying to understand the above subject and as I was researching, I came across this article. Interesting read

"After how well things have gone since the Bitcoin Cash fork, it’s easy to believe that future hardforks will be equally successful. Keep in mind that divided hardforks cause a number of problems:

Naming: with bitcoin, bitcoin cash, B2X, and (soon) bitcoin gold, it becomes hard for newcomers to understand what’s going on.
User Experience: not only do these blockchains share the same transaction history, but they also have the same address format, which can lead users to send funds on the wrong blockchain!
Taxes: it is still unclear whether regulatory bodies will treat these as airdrops (potentially taxable) or stock splits (not taxable).
Privacy: since multiple blockchains now share the same transaction history, future transactions on one blockchain can leak privacy info on another. This is very hard to manage.
Company Support: many services are effectively forced into supporting alt-coins that they otherwise would not, which includes extra engineering, accounting, security, and support work. It may not even be a choice for these services, as one could argue they have a fiduciary duty to pass along the fruits of holding onto their end-users’ private keys.
Security: having a large supply of performant SHA256 ASICs in the world makes it easier to launch a 51% attack on bitcoin. As a side note, bitcoin cash’s poorly implemented Emergency Difficulty Adjustment (EDA) leads to unnecessary swings of hashpower between blockchains, but that mostly just hurts Bitcoin Cash.
Blockchain Bloat: uncertainty about how to prevent replay transactions may lead to users splitting their coins in transactions between their own wallets before spending their funds, polluting one (or both) blockchains a bit.

Last time, there was an enormous difference in beliefs between people who wanted to scale with much bigger blocks (bitcoin cash) vs segwit (bitcoin core). This time, the two factions are arguing about a relatively small difference (1MB vs 2MB base blocks), and this is taking place after we just effectively had a doubling of the effective block capacity (via segwit). The debate is really how we think Bitcoin should change, and who we think has the power to change it.

Is this good or bad?"

https://hackernoon.com/whats-going-to-happen-when-bitcoin-forks-again-eef7a088a6d9

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https://medium.com/@michaelflaxman/whats-going-to-happen-when-bitcoin-forks-again-eef7a088a6d9

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