Coinjar Will Only Support One Kind of Bitcoin Until January 2018

Bitcoin service providers are officially declaring their stance on SegWit2x. This upcoming hard fork may prove to be a rather disruptive force. No one knows for sure how things will play out in less than two weeks from today. CoinJar has clarified its position on this fork. The company will only support one form of Bitcoin for now. That situation may change come January 2018, depending on how the ecosystem looks then.

It is evident services such as CoinJar are in an awkward position right now. With three Bitcoin forks this year alone, a lot has changed these past few months. It is up to individual companies to either support them all or not. In the case of this particular company, only one Bitcoin will be supported. That makes a lot of sense and will also help avoid confusion. Keeping customers safe from financial harm and losses is still the number one priority.

An Interesting Approach by CoinJar

Some people may wonder what the company will do with SegWit2x. It will all depend on how viable this fork proves to be in the long run. If it is an altcoin by January 2018, CoinJar may integrate support eventually. If it becomes the main Bitcoin chain, that will become the default supported currency. For now, the company still defines SegWit2x as B2X, and the current BTC is B1X. Once the dust settles after the fork, it will be interesting to see who gets the BTC “crown”.

The current plan is to monitor the network for 96 hours after the fork. At that time, CoinJar will calculate an “adoption threshold”. This is based on an average of the price and hashpower of both chains. The “winner” of this calculation will become the official BTC on CoinJar. It seems these rules are pretty fair, although 96 hours may be a bit short. A lot of volatility will occur in the first few week or weeks.

Moreover, it is possible the scale of power will tip a few times as well. Depending on the profitability of B2X, miners may switch back and forth to maximize earnings. We have seen the same with Bitcoin Cash until very recently. It is evident there are a lot of factors to take into account as far as this hard fork is concerned. We can only hope companies such as CoinJar will not regret their initial decision.

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JP Buntinx

JP is working hard to bring more credibility to the Bitcoin and blockchain news industry. Outside of being Europe Editor at Newsbtc, JP is also an active writer for the website, and does not shy away from letting his opinion be heard.
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Source: Newsbtc