Picture from coindesk

For cryptocurrency investors and traders, August 1 is a date they have kept  marked in their diaries. August 1 is the date that has been chosen for a change in the way data blocks are “stacked” in the block chain. One of two things could happen. The first option is a soft “fork” or change. The changes would be minor and they would be of little significance. The more likely option is a hard “fork” or change. A hard fork would represent both those opposing the change in stacking and those backing it, going their separate ways. That would result in bitcoin splitting into two separate currencies.

Why is this important ?

Bitcoin is the foundation of the cryptocurrency world. Direct dollar to the alternative currencies purchase is not yet in place. You have to buy bitcoin to buy other currencies. A split could see one holding two different currencies, one of which may not do so well in value.

What are crypto exchanges in Nigeria saying ?

Luno one of the popular bitcoin exchanges in the country has hinted that it may suspend operations around that period, till the picture is clearer.  Naira4dollar which is one of the oldest e currency exchanges in the country is yet to issue any statement. Ditto remitano.

What should you do ?

As the date draws nearer, three options have emerged. The first option is to sell down all stakes in cryptocurrencies and hold regular money like Naira or Dollars. Another option is to switch to alternative currencies (or alt coins) besides bit coin. Some investors and readers believe they will appreciate as people buy into them in place of bit coin. The last option is to hold on to bitcoin, regardless of what happens. If you are not into trading, please move all your coins to a hard or offline wallet.

 

 

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy.

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