As you know, segwit2x was officially canceled last week, but some miners decided to still go forward today, and some exchanges like coinbase plan to support the hard fork.
So things will happen like this for double spending one segwit2x exchanges resume deposits and withdrawals (If I understand correctly) :
- The frauder installs 2 bitcoin wallet software on his computer : one supporting segwit2x and another one which doesn’t (both using the same wallet format).
- He sends non segwit2x bitcoins to his wallet on his computer.
- He backup his wallet file.
- Frauder then perform a segwit2x transaction through his segwit2x software to an exchange accepting segwit2x. The transaction being larger than 1Mb block size, it is rejected on the original blockchain and he keeps his balance on the original blockchain but not on the second.
- He then replay the same transaction by using his backed up walled through his non segwit2x software to an exchange not supporting segwit2x.
- Frauder then converts his segwit2x bitcoins to an other cryptocurrency like Doge or Litecoin, and send them to an exchange not supporting segwit2x (which he converts to original bitcoin).
He does the same operation on the exchange were he sent his replayed transaction (and sends the doge/ethereums to the same exchange he sends his ethereum doge converted from segwit2x).
- He then repeat the operation by resending his doubled non segwit2x bitcoins to his wallet on his computer.
So, if I understand correctly, the price of the original chain should go down to zero due to the trivial arbitrage operation described above and price of segwit2x chain should explose, correct ? So I suppose this means I should get out of exchanges implementing the update, isn’t it ?
If I misunderstood, please explains what transaction replay means.