Coinbase Backtracks, Will Follow Gemini and the Longest Chain – Trustnodes

Coinbase Backtracks, Will Follow Gemini and the Longest Chain

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Just a day after Coinbase seemingly said they will list segwit1x as BTC regardless of its level of hash-rate support, they issued a clarification today which sort of says the opposite.

“We are going to call the chain with the most accumulated difficulty Bitcoin,” David Farmer, Director of Communications at Coinbase, said in a statement, before adding:

“We may consider other factors such as market cap or community support to determine stability.”

As might be expected, 1xers were disappointed while 2xers cheered them on in a mirror reversal of yesterday’s situation, but the exchange says:

“It’s important for us to keep a neutral position in any fork. We believe that letting the market decide is the best way to ensure that Bitcoin remains a fair and open platform.”

The clarification came just hours after Gemini, one of bitcoin’s biggest exchange, stated:

“The cumulative computational difficulty is an objective and observable metric that is impossible to fake or “game.” It may not be a usable framework in all future chain split situations, but it works for this one.”

Gemini, of course, has its eyes towards the ETF and the big stage which doesn’t operate on subjective criteria, so they likely had no choice but to use the only objective definition of what is bitcoin.

That probably also forced Coinbase’s hand since otherwise there would have been a situation where one exchange calls the majority chain bitcoin while the other calls it b2x.

But there are two more exchanges that need to clarify their position, Bitstamp and Kraken. However, it is likely neither has much choice considering the decision of Gemini and Coinbase.

As such, in this precedent setting case, it may well be reason has prevailed over emotions, objectivity over subjectivity, and we thus might have consensus among exchanges, at least the ones that matter.

The ball is now on Blockstream’s court. They have a big decision, as does bitcoin as a whole, in the next three weeks, with the countdown to an historical day continuing.

 

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