Warning: XAPO Users Have the "Real Bitcoin" Chosen for Them

The XAPO wallet signaled it may not support both blockchains after an eventual November split. The wallet may thus disable Bitcoin Core coins and give the official position to the SegWit2X blockchain- based on difficulty levels.

Owners of Bitcoin on the XAPO wallet were shocked to find out the wallet owners would not be loyal to the Bitcoin Core blockchain, but decide on how to give away the ticker based on difficulty levels in the new blockchains forming after a November hard fork.

The position of XAPO echoes its policy during the Bitcoin Cash hard fork. The wallet supports as "official" the chain with the greater difficulty. So in theory, if more mining power had joined Bitcoin Cash, XAPO would have counted it the official Bitcoin.

The problem now is that both new chains would have claims they represent the real Bitcoin vision and would fight for the official brand. Even the difficulty measurement may be a close competition. But it is at least certain that XAPO owners would have access to the minority chain. But users may strongly disagree with the assignment based on only one measure, when their preference for Bitcoin and its properties differ.

At the same time, exchanges would measure "the real Bitcoin" by market principles, or market price. In general, mining difficulty and market price rise and fall together, but in the current hard fork goes with very strong opinions. It is still early to say which chain would gain a greater market price, but Coinbase and Bitfinex would be ready to start immediate trading.

Because of the "difficulty rule", users are threatening to take their coins off the wallet. But it is still unknown how other wallets would treat the two blockchains after November 18, the most probable date of the hard fork.

Currently, the miners signaling SegWit2X have the majority of the hashing power, but there are also enough Bitcoin Core nodes who would continue working on the compact block version. Mining power has increased in general for the whole operation of Bitcoin mining, so in terms of owning mining farms and devices, both chains may find robust support. But the real blockchain picture would emerge only after the split.