Bitcoin Developer Declares Hard Fork 'Bomb'...Controversy Over Seizing Satoshi's Holdings

▲ Bitcoin, Satoshi(?)/ChatGPT generated image

Bitcoin (BTC) developer Paul Stork will launch ECash, a hard fork that redistributes Satoshi Nakamoto's holdings, this August.

Cryptocurrency-focused YouTube channel Coin Bureau reported on May 2 (local time) in an uploaded video that Bitcoin developer Paul Stork unveiled plans to launch ECash at the Bitcoin 2026 conference in Las Vegas. This fork, occurring at block 964,000, will allocate new coins to Bitcoin holders at a 1:1 ratio. Stork chose to build an independent chain after his sidechain-related proposal, BIP 300, was rejected.

ECash will reallocate 500,000 BTC from the holdings believed to be in Satoshi Nakamoto's wallet to developers and investors. While figures like Peter McCormack criticized this action, Stork emphasized that these are rules for a separate network that will not affect Bitcoin on the existing chain. The reallocated assets will be used as initial operating funds for the ECash ecosystem.

This network is based on Drivechain technology and operates 7 sidechains, including Photon, which defends against quantum computer attacks. The need for quantum-resistant chains was raised after a recent report from Google Quantum AI showed a decrease in the computational power required for Bitcoin decryption. Stork designed a structure that minimizes modifications to the existing Bitcoin software while expanding its functionality.

Users should be aware of the potential for asset loss due to replay attacks during a hard fork. The U.S. Internal Revenue Service (IRS) taxes assets received from a hard fork as ordinary income based on their fair market value at the time of receipt. Regardless of whether ECash is listed on exchanges, receiving coins into a personal wallet may trigger tax reporting obligations.

The launch of ECash is expected to be a case study for evaluating Bitcoin's governance decision-making structure and the direction of technological innovation. Bitcoin's market capitalization is approximately $1.55 trillion, with an individual price of around $77,000. Investors should check their wallet management methods and exchange support before the activation block in August.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*