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Forking crypto
Cryptocurrency forks play an important role in updating and maintaining blockchains. Soft forks happen all the time, but hard forks are the ones that get press coverage because they are often the result of disagreement between developers. This piece has explored the differences between hard and soft forks and looked at the impact that forks can have on cryptocurrencies. If you would like to learn more about the Bitcoin Cash or Ethereum Classic forks or anything else crypto related, continue exploring Swyftx Learn! Crypto Basics: A fork in the road The alternative method is to fork the existing blockchain. With this method, changes are made to the existing blockchain rather than starting from scratch. In this case, two versions of the blockchain are created as the network splits. An example of this can be seen with the creation of bitcoin cash. Differing opinions around the future of bitcoin led to the creation of a new cryptocurrency (bitcoin cash) from the original cryptocurrency (bitcoin).
Airdrops vs Forks
Cryptocurrency forks
The IRS has been clear that crypto hard forks are taxed. After a hard fork, holders of the original token receive the same number of tokens they had on the original chain on the forked chain. These tokens are taxed as income at their fair market value at the time they were deposited into a user's wallet. This is the same way crypto airdrops are treated for tax purposes. Comments (12) Unfortunately, BitGo cannot guarantee to support new forks or airdrops within any short timeframe. Business obligations, developer availability, and cost are all material factors, and safety, testing, quality, and service are our primary objectives. While BitGo will do its best to make value available to its customers, we cannot guarantee a specific timeframe when the exact considerations of future forks can be so varied.