Published: Sat, November 11, 2017
Markets | By Rosalie Gross

Bitcoin is Not Splitting, SegWit2x Hardfork Is Now Cancelled

Bitcoin is Not Splitting, SegWit2x Hardfork Is Now Cancelled

Bitcoin jumped as much as 11 percent to $7,882 after the main architects behind an upgrade to its underlying technology known as Segwit2x, which would have caused the chain to split in what's known as a hard fork, canceled their controversial plans. At the time, the Bitcoin community was in crisis after almost three years of heavy debate, and consensus for Segwit seemed like a distant mirage with only 30 percent support among miners.

The lead developer on the team planning to hard fork, Alistair Milne, manager of the Altana Digital Currency Fund, said: "Our goal has always been a smooth upgrade for Bitcoin".

After hitting a new high above $7800, Bitcoin prices have again consolidated back in the past 24 hours and is now trading at $7196, according to the CoinMarketCap. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. "This was never the goal of Segwit2x".

He added that with rising fees on the blockchain it will be necessary at some stage to implement on-chain capacity increases.

"When that happens, we hope the community will come together and find a solution".

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On November 8, 2017, CEO of Bitgo, Inc., Mike Belshe, sent out a message to the blockchain community indicating that the upcoming Segwit2x fork, which had been previously scheduled to take place on or around November 16, has been called off. One contributor called the hark fork a "ham-fisted agricultural attempt", while another said, "2x was gone, [but] if we are really going to upgrade it [the blockchain] needs to be at least 10x better than this, transparent, well tested, replay protected, and decentralized".

"Rewards exist precisely because risk and opportunity exist".

The first implementation has occurred; however, the alternative software, which would also change Bitcoin rules and boost the size of blocks from 1MB to 2MB, has not been embraced by every trader and enthusiast.

Just when everyone is having a close observation of the latest Bitcoin rally, the cancellation of the hard fork plans puts serious thoughts in the minds of investors as what course of action will be followed further to scale up Bitcoins. "Furthermore, seeing the spike in bitcoin after the announcement shows that this move is welcome by the broader crypto community".

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