What should we do for the Bitcoin Hard Fork?

This is a message that we are sending to our users:


You may have heard recently about a Bitcoin fork may happen and some exchanges may start listing two coins BTC and BTU. There is really a war going on inside the Bitcoin world at the moment with both sides Bitcoin Unlimited and Bitcoin Core believing they are doing the good for Bitcoin. Specifically, the war originated by people trying to include more transactions in one block, thus allow more transactions to be confirmed per a period of time. If you experienced an annoying delay that your Bitcoin transaction not confirmed in time, then this war is people declaring different ways to solve that problem.

What should we do for the Bitcoin Hard Fork?

At Remitano we are constantly monitoring the situation to make sure Bitcoin deposited with us and sent from us are properly processed.

We, however, have no mind for a different coin. In our world, there will be only one Bitcoin, the Bitcoin that majority of miners will continue to agree on.

As we have mentioned earlier, there was an announcement of 20 exchanges considering listing both BTC and BTU as separated coins had a hardfork happen. We find this idea make no sense and we won’t go in that direction.

Talking technically, listing both BTC and BTU (like the 20 exchanges proposed) is terrible idea, it doesn’t align correctly with the nature of Bitcoin. After the hard fork, transactions will continue to be confirmed on both chains. A coin that listed as BTC may very well spent on the BU chain and the coin listed as BTU may very well spent on the BC chain. So what are investors exchanging for then? Very confusing, right?

Right from the beginning, Bitcoin has been based on Proof Of Work concept. As long as the majority of network use it hash power to confirm transactions and produce blocks, with whatever format they agreed on, then that should be considered valid and that is Bitcoin. This is why Remitano declared that in our world, there will be only one Bitcoin — the Bitcoin that majority of miners will continue to confirm, regardless whether it is Bitcoin Unlimited or Bitcoin Core. If a side produce the longest chain, we follow them.

Currently two sides proposed different approaches:

The Bitcoin Unlimited approach: Remove the blocksize limit from the Bitcoin protocol and let the miners choose the correct block size based on the number of transactions and the network condition. Technically this would allow 10 times or 20 times or even more the current throughput as long as network is fast enough to transfer bigger blocks. We find this idea simple yet brilliant. Network is getting faster and storage is getting cheaper every year, remove the limit once and you are settled for the rest of life. In the software world, simple solution usually the most effective because it’s easier to implement and has fewer bugs to catch.

The Bitcoin Core approach: SegWit — Introduced an extended block that contains transactions signature so the original block can be lighter. This would double the number of transactions in the original block. We find this idea tricky, it’s like a hack against Bitcoin. The introduction of new extended block make the protocol more complicated for quite a humble gain compared to the approach of Bitcoin Unlimited.

In the end, one side needs to win to avoid the mess. The longer they stay on this war, the messier things will be. We are in favor of Bitcoin Unlimited but we would be glad to follow had Bitcoin Core become the winner. What we really don’t want to see is the mess of exchanges start listing both BTC and BTU had the hard fork become a reality.

Recent (though unofficial) statistic from pool of miners has signify that Bitcoin Unlimited nodes are getting more traction (over 50%). This gives us affirmation that Bitcoin Unlimited will likely to be the winner.

With that being said, Remitano ask you to support Bitcoin Unlimited by either a tweet or a post on your facebook. If you are a twitter user, give a support tweet. If you are a facebook user, give a support post with message “One side has to win. Let it be #BitcoinUnlimited #bitcoin”. A tweet or post from you can be the key to end this war.

Thank you for reading all this long. Peace.

P/S: Shortly after we published this, a few users pinged us asking if that would make Bitcoin no longer have 21M limit. The answer is no. This is a war about blocksize. The 21M limit still hold true and it’s the swear that both Bitcoin Core and Bitcoin Unlimited need to pledge to.

Copyright by Remitano.