Bitcoin to a New All-Time High

SegWit2x Called off Due to Lack of Consensus, Leading Bitcoin to a New All-Time High

BitGo CEO and co-founder Mike Belshe recently announced the end of the SegWit2x hard fork on the SegWit2x mailing list, effectively calling off what some considered the resolution of a three-year-long scaling debate revolving around allowing more transactions through the network. SegWit2x was set to increase block sizes to 2 MB at block 494784, expected to occur around a week and a half from now.

The announcement that called off the hard fork was signed by various SegWit2x supporters, including Xapo CEO Wences Casares, Bitmain founder Jihan Wu, SegWit2x lead developer Jeff Garzik, and ShapeShift CEO Erik Voorhees.

In it, Belshe argued that SegWit2x was too controversial to move forward and that although its supporters consider a block size increase important, they see community consensus and bitcoin’s growth as priorities. The announcement reads:

“Our goal has always been a smooth upgrade for Bitcoin.  Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.”

Belshe added that, until then, plans for the upcoming 2 MB upgrade are suspended. The market quickly reacted to the announcement, as bitcoin hit a new all-time high above $7,800 right after it was made. At press time, the price has corrected back to $7,277.10 according to data from CryptoCompare.

The announcement comes soon after the largest derivatives exchange in the world, the CME Group, announced it would launch bitcoin futures by the end of the year, which previously helped the cryptocurrency’s price stabilize above $7,000.

Belshe’s announcement ends with a message of unity, thanking everyone who contributed to SegWit2x, whether for or against it. It reads:

“We want to thank everyone that contributed constructively to Segwit2x, whether you were in favor or against. Your efforts are what makes Bitcoin great. Bitcoin remains the greatest form of money mankind has ever seen, and we remain dedicated to protecting and fostering its growth worldwide.”

Prominent community figures, including Litecoin creator Charlie Lee, already reacted to the announcement on social media. Notably, Lee pointed out that a 2MB block size may be needed in the future, but only when there’s consensus.