Bitcoin Fork Proposal Triggers Outrage Over Legal Wording

The plan is aimed at limiting arbitrary data on-chain after the Bitcoin Core v30 update, but was criticized as “Orwellian” and “an attack on Bitcoin.” However, Dashjr later clarified the language was misinterpreted. Meanwhile, a separate NYDIG report challenged the long-held belief that Bitcoin acts as an inflation hedge, and found instead that its price moves more closely with fluctuations in the US dollar and broader liquidity ￰0￱ Community Divided A new Bitcoin improvement proposal authored by long-time core developer Luke Dashjr caused widespread outrage across the crypto community, after a section in the document appeared to imply legal consequences for those who reject the proposed soft ￰1￱ proposal was published on Friday, and is the latest flashpoint in the debate between Bitcoin Core and Bitcoin Knots ￰2￱ debate centers on whether Bitcoin should allow non-financial transactions or restrict data that could contain illicit ￰3￱ goal of the proposed soft fork is to limit the amount of arbitrary data stored in Bitcoin transactions for one year, until a permanent solution can be ￰4￱ move comes amid concerns that the latest Bitcoin Core v30 update, which allows larger data payloads, could enable malicious users to embed illegal or immoral content on-chain — potentially exposing network participants to criminal liability.

However, controversy erupted over the proposal’s language in lines 261 to 272, where it states that “there is a moral and legal impediment to any attempt to reject this soft fork,” followed by a note that rejecting it “may subject you to legal or moral consequences” or result in “splitting off to a new altcoin like Bcash.” Critics quickly accused Dashjr of trying to coerce the community through fear of legal ￰5￱ educator and systems engineer Bam called the wording “Orwellian,” and compared it to a dystopian ￰6￱ engineer Ben Kaufman described it as “the most clear case of an attack on Bitcoin.” Canadian cryptographer Peter Todd shared screenshots suggesting Dashjr was relying on the threat of legal pressure to ensure ￰7￱ Digital’s Alex Thorn also called the move “explicitly an attack on Bitcoin.” Others, however, argue that the section has been ￰8￱ claim it refers to the risk of being complicit in hosting illegal content should the fork not be adopted, rather than a direct legal ￰9￱ himself clarified that the wording originated from an earlier draft and said it might need more clarification.

Still, even if the fork moves forward, Todd claims to have already bypassed its proposed restrictions, suggesting the technical fix may not be ￰10￱ Research also warned that the proposal could inadvertently create economic incentives for bad actors to post illegal content on-chain in order to disrupt the network. Bitcoin’s Real Driver Is Dollar Weakness In other Bitcoin-related news, Bitcoin’s reputation as an inflation hedge is being challenged by new research from NYDIG, which suggests that inflation itself has little influence on the cryptocurrency’s price. Instead, the report argues that Bitcoin tends to rise when the US dollar weakens, much like ￰11￱ Cipolaro, NYDIG’s global head of research, said in a note on Friday that while the crypto community often portrays Bitcoin as “digital gold,” the data simply doesn’t support a strong or consistent link between inflation and Bitcoin’s ￰12￱ explained that Bitcoin’s correlations with inflationary measures are neither steady nor particularly strong, and that expectations of inflation are only a slightly better predictor of Bitcoin’s price movements.

Interestingly, he added that even gold, which has long been considered the ultimate inflation hedge, doesn’t live up to that ￰13￱ fact, gold has shown an inverse and inconsistent relationship with inflation over time, a finding that Cipolaro described as “surprising for an inflation protection hedge.” () What seems to matter more for both Bitcoin and gold, according to NYDIG, is the strength of the US ￰14￱ the dollar weakens against other currencies, both assets tend to ￰15￱ explained that while gold’s inverse correlation to the dollar is long established, Bitcoin’s relationship is newer but growing stronger as it becomes more integrated into the traditional financial ecosystem.

() He also pointed out that broader macroeconomic factors like interest rates and the money supply have played a more important role in shaping Bitcoin’s price. Historically, gold gained when interest rates fell and declined when they ￰16￱ pattern has now begun to emerge for Bitcoin as well. Similarly, looser monetary policies and expansions in global liquidity generally supported Bitcoin’s upward ￰17￱ concluded that these trends show how Bitcoin has matured into a key player in the global financial ￰18￱ gold may serve as a hedge against real interest rates, he said, Bitcoin evolved into what he described as a “liquidity barometer,” by reflecting much broader shifts in global economic conditions rather than reacting directly to inflation itself.