Please note: this company statement contains status updates located at the end of the post.
What is Bitcoin Scaling?
A public debate over the future of Bitcoin and its transaction capacity, often referred to as the ‘Bitcoin Scaling’ debate, has now been going on among the various actors in the Bitcoin community for over two years. Unfortunately, disagreement between Bitcoin miners and Bitcoin developers over how to best to implement a code change that would allow the network to handle more transactions became, ironically, a major hindrance to reach consensus.
The events of summer 2017 turned out to be pivotal for Bitcoin scaling to progress. The mining community has already come to a consensus to lock in SegWit on July 22. Still, several days remain until the activation of SegWit, and this period of uncertainty leaves room for potential risks. The possibility of ‘hard fork,’ network split that will result in creation of a new Bitcoin blockchain and associated altcoin Bitcoin Cash (BCC/BCH), is still present. The Bitcoin scaling debate is not over yet, nor are the outcomes of the Bitcoin scaling clearly outlined and definite.
Coinify Anticipations Regarding Bitcoin Scaling
Coinify is a Bitcoin transaction company with Bitcoin users at its core, and our key focus and priority is to act in the best interest of our users. As the Bitcoin scaling will affect the way Bitcoin transactions are confirmed and registered on the Bitcoin blockchain network, the anticipated Bitcoin scaling event represents a period of network instability that may affect safety of our customers’ funds.
As a part of our contingency plan, we anticipate the need for a downtime of our services for a short period(s) around August 1. We want to stress that we will make sure that the downtime, if implemented, will be as short as possible while still keeping our customer funds safe.
In case of emergence of a new Bitcoin blockchain and associated cryptocurrency, we will continue operating our services with Bitcoin. Shall the customer demand for this new currency grow significantly, we will consider implementing it in our services.
Please Keep a Lookout for Updates
We will be watching the ‘Bitcoin Scaling’ developments closely and will provide you with updates in this statement section.
UPDATE 22:00 CEST, July 31: Dear customers, please note that our services have been temporarily disabled. This precaution is being implemented with intent to protect our customers funds during the uncertainty period regarding ‘bitcoin scaling’ currently affecting the entire bitcoin industry.
Please read in more detail how this will affect our specific services in the following article: Why are Coinify services currently unavailable?
We will strive to re-enable our services, as soon as we consider stability has been restored to a level that satisfy our customers needs. We apologise for the inconvenience this might have caused you and thank you for your understanding.
Once all services are back to normal, we will provide you with an update in this section.
UPDATE 10:00 CEST, August 2: Coinify services are re-enabled and running as usual.
Dear customers, please read this recap on the latest developments in bitcoin scaling process:
Anticipated ‘hard fork’ event happened at around 22:00 CEST on August 1, when the first block of new currency Bitcoin Cash was created. This means that from now on, two separate bitcoin blockchains exist: Bitcoin Classic (BTC/BTX as the original currency) and Bitcoin Cash (BCC/BCH as the new currency). As we have previously informed you, Coinify will continue to provide services with the original currency Bitcoin Classic and will consider implementing Bitcoin Cash in the near future.
Coinify has previously announced plans for temporary downtime during this uncertainty period in order to protect its users from possible risks. After assessing the situation this morning, we decided that is is safe to enable our services again. We are aware that this downtime could cause some of you inconvenience and can lead to some service delays, for which we want to apologize.