Jump to content
Sign in to follow this  

bitcoin fork

Recommended Posts

How will the upcoming hard fork be treated for IG spread bet purposes?  I know there will probably be some market turmoil and, possibly, demand for the old/new bitcoins will signal an eventual "winner" which will impact pricing, but for those with positions in BTC now what exactly will happen?  I understand actual owners of bitcoin will automatically receive new currency.

Share this post


Link to post

Put simply if you had £1/pt long on bitcoin going into the fork, you would have £1 long on both chains after the fork. Similarly, if you have £1 short on bitcoin, you'd have a new position booked short from zero on the new chain. 

 

Examples

 

What does this mean for your positions?
If you hold an open position on bitcoin at the time of the fork and the hard fork does go ahead, we will make a cash adjustment to your account, or book a new position in bitcoin gold with an opening price of zero. We may initially value your positions at 0, but once there’s a value on major exchanges, this will be reflected in those positions. Clients with short positions risk having a running loss on their new bitcoin position.
Short Position Long Position
If the fork goes ahead and you’re holding a short bitcoin position – say 3 contracts (or $300 per point) – when it does, we will book a new short position to your account for 3 contracts (or $300 per point) of the new bitcoin coin at a price of 0. 

If, for example, the new bitcoin is valued at $2 per coin, you will have a running loss on the position of $600. 

Alternatively, we will debit your account with $600 to reflect the loss you would realise.
If the fork goes ahead and you’re holding a long bitcoin position – say 1 contract (or $100 per point) – when it does, we will book a new long position to your account for 1 contract (or $100 per point) of the new bitcoin coin at a price of 0. 

If, for example, if the new coin is valued at $2 per coin, you will have a running profit on the position of $200. 

Alternatively we will credit your account with $200 to reflect the profit you would receive.

 

IG policy on blockchain forks

We base the price of our cryptocurrency products on the underlying market, made available to us by the exchanges and market-makers with which we trade.

 

There is currently one accepted decentralised ledger which records all bitcoin transactions – as well as an equivalent for ether – called the blockchain. When the software of different miners becomes misaligned, a split – or 'fork' – in the blockchain may occur. This results in the existence of two different blockchains. 

 

Generally, cryptocurrency users quickly agree which version to continue to use, causing minimal disruption. The old version of the blockchain is then discontinued.

 

In the event that one version isn't discontinued – known as a hard fork – we will generally follow the blockchain that has the majority consensus of cryptocurrency users, and will therefore use this as the basis for our prices. We reserve the right to determine which blockchain and cryptocurrency unit have the majority consensus behind them. 

 

If the hard fork results in a viable second cryptocurrency, we may create an equivalent position on client accounts to reflect this. However this action is at our absolute discretion, and we will have no obligation to do so. If, and when, the second cryptocurrency is tradeable on a major exchange, we will endeavour to represent that value. We’ll do this either by making the product available to close based on the valuation on that venue, or by booking a cash adjustment on client accounts.  If, within a reasonable timeframe, the second currency does not become tradeable on major exchanges or is otherwise deemed not to be viable as a currency (for example, it is not mined), we may delete any positions that had previously been created at no value on client accounts. We will take steps to notify you when we have taken this action.

 

When a hard fork occurs, there may be substantial price volatility around the event, and we may suspend trading throughout if we do not have reliable prices from the underlying market.

 

We will endeavour to notify you of potential blockchain forks, however it is your responsibility to make yourself aware of the forks that could occur.

Share this post


Link to post

Further to this please see the below for a synopsis of email coms we will be sending out today. Please check your emails for more info. 

 

Bitcoin’s situation explained


There have been two hard forks in the bitcoin blockchain so far this year, and there are now proposals for another one. This next fork could lead to the creation of another new blockchain and cryptocurrency: bitcoin2x (B2x). Bitcoin2x will activate the second part of the ‘Segregated Witness’ protocol which will result in an increase in the block size from 1MB to 2MB.

 

Bitcoin2x aims to supersede bitcoin. At the moment, however, there isn’t a sufficient consensus within the bitcoin community to identify a clear winner in the SegWit2x hard fork. The possibility therefore remains that both blockchains and currencies will coexist, or that bitcoin2x will be accepted by the majority and renamed ‘bitcoin’.

 

The fork will take place once block #494,784 is mined, predicted to be on 16 November. This is, however, subject to change, and there is a possibility the fork may occur sooner, be delayed or not occur at all.

 

We would like to make you aware that all trading on bitcoin will likely be suspended for a significant period before and after the fork. We will also stop accepting client orders to open new short positions from 8 November until after the fork.

Share this post


Link to post

In case anyone is wondering about the spike earlier, the Segwit2x fork has been suspended. Good decision IMO as a key principle of BitCoin is that its software moves forward on a consensus basis. However, sooner rather than later, they will need to address the transaction volumes issues. Segregated witness will help, but it's not clear to me if it will be enough.

Share this post


Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Topics
      12,422
    • Total Posts
      63,139
    • Total Members
      83,819
    Newest Member
    Bdabas89
    Joined 18/09/20 23:08
  • Posts

    • I want to believe that, even if we had viruses for many years and we lived with them like nothing happened, this one is killing more people than it should. At least is what reports are saying. That is why countries are forcing lock-downs. Think about that a lock-down is going to extend the furlough policies all over the world again. I don't think a government want to pay that money out to citizens if they don't have to, and companies are going to have to close business for good if we have a second lock-down everywhere. I agree with the statement that we had many corona-viruses before i.e. common flu, but why now governments are taking these draconian measures to force people into a quarantine? If we had the same dangerous viruses always around why are they now locking people at their homes. Did they not care about people before? I think the virus is way more deadly than they tell us and that is why people are not really that scared of it. If we had all the information that is available to professionals we would be really scared and people would lock themselves without waiting any government to tell them. My wife is Chinese and I get their news first hand. They are not reporting what is really happening since the very beginning and it is really hard to trust the Chinese government  on anything related to this virus. They still have the problem there, they keep locking entire cities down for short periods the minute they see anything. It is not reported here in the news but every week they lock people down at their homes.  This virus is really nasty and if locking people down is going to stop it, let's do it. 
    • I agree with 99% of this - the current strain is virtually exact to a strain found in 2012 by a group of Chinese scientists, then when 6 of them died from exposure the virus was sealed and sent to Wuhan I challenged David Icke  to prove the excess deaths were'nt excess deaths, from the info I looked into I'm satisfied the virus is genuine and I'm probably one of the worlds biggest sceptics  From a lock down point of view I'd of thought the perfect place to test out compliance of mass herds would be the USA - hasn't happened strongly enough for me to be concerned but it shown those that could create such circumstances how compliment most people are.  
    • Corona virus has been with us since forever we just never mass tested before. There are no extra deaths this year than any other and it's the same unfortunate types who die of corona virus every year (over 80's with pre-existing conditions 90% of cases). Corona virus is always circulating in the population most people being completely unaware and asymptomatic, herd immunity is built and the virus mutates or dies out. Tests just show you have been exposed to the virus at some stage which could have been months ago and you were most likely asymptomatic. Vaccines don't work for corona virus because they mutate very quickly which is why there is no vaccine for the common cold (a corona virus). And why flu shots don't work very often because they are based on the previous years dominant strain not the current year's (the mass manufacturing would be too late). Covid 19 has already been mutating and the last studies I saw several weeks ago confirmed that as usual a particularly nasty strain becomes less deadly with each new mutation. Another 30,000 people will die next year from respiratory infections as it's the 5 year rolling average (covid 19 or not), weather it'll be covid 19 next year or another strain no one knows but they will keep the covid ball rolling anyway. So all in all it looks like lockdown til the end of time.      
×
×