This update will only affect Bitcoin Cash (BCH), all other assets in Bitso will remain operating as normal.
IN THIS ARTICLE
- Handling the BCH Update within Bitso
- Possible hard fork
- Bitso’s position regarding the possible BCH hard fork
- What’s next?
Handling the BCH Update within Bitso
Bitcoin Cash (BCH) will go through a scheduled update on Sunday, November 15, approximately at 6:00 AM Mexico City time, 8:00 AM Buenos Aires time (12:00 PM UTC). These updates to Bitcoin Cash are scheduled and occur every six months on average.
To maintain the security of our clients' funds, Bitso will take the following measures:
1. We will stop deposits and withdrawals from BCH on Saturday, November 14th at 1:00 PM Mexico City time, 4:00 PM Buenos Aires time.
2. You won’t be able to place market orders in the books BCH/BTC and BCH/MXN. We do this to shield the price at which you’ll buy BCH given the uncertainty in the market.
3. Once the chain is stabilized, we will reestablish the service of deposits and withdrawals.
Since the exact time this will happen is unknown, our team will be monitoring the development of the update, and communicate on our Twitter when we re-establish deposits and withdrawals.
All these measures are aimed at protecting your funds and continue providing you with excellent service.
These measures will not affect trading
Possible hard fork
Within the framework of the scheduled update of the Bitcoin Cash (BCH) network, a controversy has arisen between two groups of developers from the Bitcoin Cash's community. This means the November 15th update could create a hard fork. However, it is very unlikely that this will happen because of the facts mentioned below.
The main dispute is between two groups of developers:
BCHA - proposes to implement an 8% tax on miners' rewards and allocate those funds to a specific group of developers controlled by the BCHA. This is to continue evolving the Bitcoin Cash protocol.
BCHN - will execute the update without including this tax because according to their position this tax is distributed in an inequitable manner and seeks to favor only the BCHA development group.
Bitso’s position regarding the possible BCH hard fork
Currently, on November 11, 2020, at noon in Mexico City; 83.3% of the mining power of the last 7 days points to the BCHN while 0% points to the BCHA; the remaining 16.7% has shown no signs of support for any group.
This indicates that there is a very high probability that the main chain is the BCHN
It is likely that the BCHA team will cancel the chainsplit before it happens. If it does happen, there is a low probability that the BCHA’s chain will survive and gain support from the community.
Bitso will continue to run the BCHN infrastructure because this is the best way to protect your funds since everything points to BCHN being the dominant chain.
If you plan deposits or withdrawals BCH on or around November 15, 2020, we recommend doing so before November 14, or after deposits and withdrawals are enabled again.
There is nothing else you need to do, your funds are safe and our team will continue to monitor the situation constantly.