BitGo Tells Users To Swap BSV To BTC Before Hard Fork Stuns Wallet

The digital currency management company BitGo tells users to move or convert their Bitcoin SV (BSV) funds to Bitcoin (BTC) due to a compatibility problem which was discovered recently. As the latest Bitcoin SV news show, users are somehow forced to move their BSV holdings due to a hard fork issue.

A blog post published on December 18 explains this in detail, where BitGo tells users that the upcoming BSV hard fork – known as Genesis – contained a protocol change that would mean its wallets will be unable to receive transactions.

The hard fork is right now set to occur in February 2020, and after this time, BitGo users will only be able to spend remaining BSV tokens and not accept incoming transactions. This event is described as “depreciation” and the company advised users to move their BSV to another wallet or sell it altogether, converting it to Bitcoin (BTC). The post summarized:

“Clients will need to take one of two actions before February 4:

1. Contact BitGo via sales@bitgo.com to convert your BSV holdings to Bitcoin

2. Move BSV funds to an external wallet

If you continue holding BSV in your BitGo wallet after February 4th, you will only be able to sweep the wallet and most functionality will be disabled.”

The issue with BSV right now stems from Genesis removing support for wallets that use a specific protocol which is known as Pay-to-Script-Hash (P2SH). As BitGo tells users that it uses a P2SH-based multi-signature (or MultiSig) addresses, it means that this upgrade will instantly paralyze its entire client base.

BSV continues facing controversies as its price tumbles and its major proponent, Craig Wright, faces an ongoing multibillion-dollar legal battle. Launched in December 2018, the token saw an all-time high of just under $240 in June this year. Since that point, it managed to lose around 66% of its value and right now trades at a price of around $80.

In the wake of a new bloodbath, we can see that Bitcoin SV (BSV) is at $80.69 with a 7% drop on the day and a market cap of $1.46 billion at press time. Almost every coin in the top 20 is dropping today, led by Bitcoin  and its recent correction to $6,700.