Post
Topic
Board Altcoin Discussion
Beware of all these bitcoin forks
by
fcode
on 20/12/2017, 18:50:00 UTC
This applies to all coin forks but since there have been so many Bitcoin forks lately it's the most appropriate to demonstrate the issue.

So everyone hopefully knows you should move your original BTC to a new wallet after a fork and before importing your old wallet in to one of these forks. This prevents the forked client from stealing your original BTC.

However, if several forks happen between the time you move your original BTC then you're in a tough spot because although you can still protect your original BTC, there is no way to protect all the other forks from stealing coins from each other.

Consider this situation:
1. You have BTC in your BTC client wallet "A".
2. Bitcoin Alpha fork happens. You're like "whatever" and don't do anything.
3. Bitcoin Beta and Charlie fork happen at the same time. Meh...
4. Bitcoin Delta happens.
5. OK, maybe it's time to claim these forked coins.
6. You move your original BTC from wallet "A" to a new wallet "B". It's safe.
7. Now in order to get some Alpha, Beta, Charlie, and/or Delta coins you have to import your wallet or private key from old wallet "A". There is no other way to do it. This means all the forks have to use the same wallet/private key(s) from old wallet "A".  See the problem? All with the same private key, now any of the forks can access the coins of any other fork until you move the coins on those forks.

So you would want to use/import the forks in the order that you trust them (from most trusted to least trusted) but it's a gamble. Once you have coins on a new fork you want to move them to a new wallet on the fork. This will protect them from the other forks.

The only way to protect against this would be to move your original BTC in between each fork (or not use the forks at all). However, that can be expensive in fees and in the case of a Beta/Charlie simultaneous fork it would be impossible (this happened with BitcoinX and SuperBitcoin).

To be clear again, this only applies in the situation where you have multiple forks happening in between the movement of your original BTC.