Concerns around the SegWit2x Hardfork

SegWit2x Overview

Anyone can create a chain fork of Bitcoin at any time. The SegWit2x hardfork (B2X) is structured in such a way that we consider it potentially dangerous, therefore we feel compelled to clarify our position.

SegWit2x (B2X) is a proposal to double Bitcoin’s transaction capacity limit. More precisely, it is an increase in the maximum block weight, to 8MB from 4MB. This is very similar to the recent Bitcoin Cash (BCH) hardfork (also an increase to 8MB), which occurred in August. However SegWit2x does not include crucial safety features, which Bitcoin Cash included.

The SegWit2x hardfork is expected to occur on around 16th November 2017 (Block number 494,784). The change is incompatible with the current Bitcoin ruleset and therefore a new coin may be created.

The Hong Kong Bitcoin Community - Stance

Hong Kong has a diverse and lively Bitcoin community. While enthusiasts, developers, entrepreneurs and traders might have diverging views and opinions on how to scale Bitcoin and eventual hard forks, we are united by our commitment to Bitcoin.

In our personal conversations at meetups and events as well as through a formal poll conducted in mid-October, we found that the vast majority of the Hong Kong Bitcoin community does not support the Segwit2X hard fork. While many have voiced clear and stark opposition to Segwit2X, the lack of enthusiastic support for this fork among the community is striking.

Below you can find an overview over some Hong Kong Bitcoin companies and their declared Segwit2X policies and contingency plans. If you would like to add your Hong Kong firm, feel free to make a pull request.

Signatories of the New York Agreement

ANX & Octagon Strategy [Statement]
Will shut down deposits/withdrawals during the fork, will NOT be supporting the Segwit2X fork in the near term.

BitClub Network
No statement or policy available.

BTCC [Statement]
Bitcoin is chain with most Proof-of-work, B2X will be allocated to each user

Genesis Mining
No statement or policy available.

Non-signatories of the New York Agreement

Bitfinex [Statement]
Original chain is Bitcoin, B2X will be allocated to each user

BitMEX [Statement]
Original chain is Bitcoin, B2X will not be allocated to each user

Will decide in mutual agreement with each remittance partner based on liquidity and reliability of each chain

Cryptomover [Statement]
Original chain is Bitcoin, B2X will be allocated to each user

Gatecoin [Statement]
Original chain is Bitcoin, B2X will not be allocated to each user

Genesis Block
ATMs will only dispense BTC as defined by Bitfinex

ATMs will only dispense BTC as defined by the legacy chain

OKCoin [Statement]
Original chain is Bitcoin, B2X will be allocated to each user

Original chain is Bitcoin, B2X will be allocated to each user

Bitcoin Association of Hong Kong - Stance

Given its possible harm to Bitcoin users and the unclarity about its outcome, we resolutely oppose the Segwit2X hard fork proposal.

Proponents of B2X hope the new coin becomes known as Bitcoin, however which coin is known as Bitcoin is not up to the proponents of any particular new token. Should anyone want to conduct a hardfork and for the new token to be regarded as Bitcoin, the proponents of the hardfork should kindly ask the Bitcoin community to support them and then only proceed with the hardfork if there is widespread community support. With respect to SegWit2x, this was not done.

In the event that the proponents of a hardfork wish to proceed anyway, due to a dispute about whether or not there exists widespread community support for the hardfork, investors and traders may decide which coin has the highest value. In order for this market process to work smoothly, without causing chaos and confusion, strong two way transaction replay protection is considered absolutely necessary.

SegWit2x does not include strong transaction replay protection, nor does it have widespread consensus across the community. Due to the combination of both a lack of consensus across the community and a lack of strong replay protection, we consider SegWit2x a reckless endeavor that will cause disruption and harm to the ecosystem. We therefore strongly oppose SegWit2x. This remains true even if the SegWit2x chain has the majority hashrate or a higher price.

For the Association

  • Chechung
  • Dominique
  • Leo