Bifurcation handling refers to the processes involved when a blockchain splits into two distinct chains, usually resulting from disagreements within the community or protocol changes. This split can occur through hard forks or soft forks, leading to the creation of a new coin or token that operates independently from the original.

During a bifurcation, stakeholders must navigate decisions regarding their holdings. For those who own coins on the original chain, they may receive an equivalent amount on the new chain if the fork is a hard one. This situation often creates uncertainty and can affect market prices and community sentiment.

Communication among users, miners, and developers is crucial for managing the implications of such splits. Proper handling includes providing clear guidelines on how to access new coins, understanding the technical differences between chains, and maintaining the integrity of the original network. Overall, effective bifurcation handling aims to minimize disruption and ensure that participants are informed of their options and risks associated with newly created chains.