Segwit2X Following the Mining Power

Added on 2017-10-08

We would like to make it clear, to our users, what we plan to do with regards to the upcoming November Bitcoin hardfork (estimated November 19th).

As we have previously stated, we are in support of the Segwit2X upgrade, which from block 494784 will allow 2MB blocks to be created.   We feel this is a reasonable compromise where Bitcoin users get both Segwit (already enable on deposit addresses) and larger block capacity.

Currently Segwit2X has about 95% of the miners in agreement with the upgrade, as such we think the situation will play out as follows:

On block 494784 a Segwit2X miner will create a larger than 1MB block; the few 5% of miners that are not upgraded will refuse the block and will be forked off the network onto a separate blockchain.  The 2X blockchain will continue to grow at a similar to normal speed.  Meanwhile, due to the massive decrease in mining power, the 1X blockchain will slow down to only a few blocks per day, making it quite unusable.

Possible other (unlikely) scenarios:

Miners change their minds and start mining the 1X blockchain instead of the 2X that they have all agreed on.  If this happens the 1X blockchain will continue to grow at a normal pace and leave the 2X blockchain behind.  At which point we will consider the 2X upgrade to have failed and will continue to follow the original 1MB blockchain.

Bitcoin core changes the proof-of-work, it’s possible that after the fork, when the 1X chain is going extremely slow, that the bitcoin core developers make an emergency hardfork to change the mining algorithm or difficulty.   We would consider this resulting hardforked coin to be an altcoin and not Bitcoin, and will still continue to offer customers the new 2X blockchain as “Bitcoin”.  We may or may not list the 1X altcoin but customers should not assume that we will.

If the fork looks, in our opinion, to be contentious and without an immediate clear winner, then we will freeze Bitcoin deposits/withdrawals until there is a clear winner between the two blockchains.

As previously noted: If you want to use a different version of Bitcoin from the one we choose, or get coins from both chains, you must withdraw your bitcoins from at least 48 hours before the fork.  And do not re-deposit for several days after the fork.