Thursday, October 6, 2022

Coinbase to Support SegWit2X Coin After November Hard Fork

Coinbase to Support SegWit2X Coin After November Hard Fork

Popular cryptocurrency exchange and wallet provider Coinbase has announced that it will support both versions of Bitcoin — SegWit and SegWit2X — in the event of a contentious hard fork come November. Coinbase will store user coins from both blockchains after the split, giving customers access once the company declares both chains safe.

Also read: Bitcoin Still the World’s Top Currency, Even After Hard Fork

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Coinbase to Acknowledge SegWit2X Coin After Hard Fork

coinbaseThis announcement came on October 6, just a month before the scheduled hard fork to activate the “2X” portion of the SegWit2X scalability plan. The Bitcoin community has yet again grown contentious regarding an increased block size, with the “No2X” social media movement pushing to reject the November implementation.

With the possibility of another chainsplit looming, Coinbase notified customers that they would have access to coins on both chains if the fork does occur.

“Customers with bitcoin balances stored on Coinbase at the time of the fork will have access to bitcoin on both blockchains,” the company wrote in an official blog post.

“There is no action required from customers and bitcoin can be securely stored on Coinbase before, during, and after the fork.

Users will be able to withdraw funds after Coinbase deems both chains “secure and stable.” The blog post said those withdrawals would likely be enabled “within a few days after the fork,” but the process could take longer if any unexpected risks surface.

This announcement mirrors the one Coinbase issued regarding Bitcoin Cash in the weeks leading up to the August 1 hard fork. According to their blog post, the company works “by the principle that our customers should benefit to the greatest extent possible from hard forks or other unexpected events.”

The company also informed users in their blog post that they are continuing to work toward enabling Bitcoin Cash withdrawals.

Hard Forks and the Bitcoin Price

Contentious hard forks, which result in a balance of coins on both blockchains, stir up chaos in the markets — as shown by the volatility experienced during the August 1 fork.

Traders that choose to split their coins will sell their balances on one blockchain in favor of the other chain. This decreases the price of the first chain, and increases the value of the second.

Volatility emerges when community support for each blockchain is divided. Supporters of one coin will dump their holdings of the other coin, and proponents of the other coin will do the same. This behavior sends the price of both coins up and down until the trading settles down.

If the November fork produces this kind of market activity, we can expect the Bitcoin price to fluctuate before the fork due to speculation, and after the fork as community support is distributed between the two blockchains.

Bitsonline will continue tracking developments related to the upcoming hard fork and will provide updates as they become available.

Where do you stand on the upcoming hard fork? Share your thoughts in the comments below.

Images via Pixabay, Coinbase

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