Breaking: Bitcoin Price Soars Just Shy of $8,000 as SegWit2x Fork Suspended

Bitcoin skyrocketed past $7,900 on Wednesday, hitting yet another record high.

Bitgo CEO Mike Belshe has proposed delaying SegWit2x in a statement signed by Jihan Wu, Jeff Garzik and Erik Voorhees as the third fork of Bitcoin is proving to be a very contentious proposal in the cryptocurrency community.

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Belshe’s comments come as the Bitcoin industry is still trying to establish an opinion of the new fork, as the cryptocurrency has recently traded at new records yet with wildly fluctuating rates on a handful of exchanges.

Mike Belshe preferred to wait until the dust settles over the Segwit2x battle citing the seeming lack of community support as the particular threshold at which he decided to call off the hard fork, which was scheduled to split off in or around mid November.

His message 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.”

Many in the bitcoin community were quick to criticize the idea and disagreed with the process by which the decision to hard fork was made. The initiative has divided the Bitcoin community as many had concerns that it may result in a chain split.

Bitcoin Segwit2x (AKA NYA agreement) calls for a specific change in the rules of the Bitcoin blockchain which was scheduled for block 494,784 to increase the Bitcoin block size from 1 MB to 2 MB.

Until recently, it looked like many investors, traders, developers and users were on board with SegWit2x, a proposal that its supporters claim will move the threshold for implementation down to 70 percent or more. That was heightened after Bitcoin Cash, an alternative to both Bitcoin and the SegWit2x version, entered the picture.

Commentators are backing the decision, with Charlie Lee, the creator of Litecoin and former Coinbase executive, joining the sentiment that the overall effect on Bitcoin’s proposed fork might be negative.

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Bitcoin traders are on edge as they await the outcome of the civil war that will decide the fate of the crytpocurrency. Bitcoin skyrocketed past $7,900 on Wednesday, hitting yet another record high.

The full text of the statement on Segwit2x cancellation:

The Segwit2x effort began in May with a simple purpose: to increase the blocksize and improve Bitcoin scalability. At the time, the Bitcoin community was in crisis after nearly 3 years of heavy debate, and consensus for Segwit seemed like a distant mirage with only 30% support among miners.

Segwit2x found its first success in August, as it broke the deadlock and quickly led to Segwit’s successful activation. Since that time, the team shifted its efforts to phase two of the project – a 2MB blocksize increase.

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.

As fees rise on the blockchain, we believe it will eventually become obvious that on-chain capacity increases are necessary. When that happens, we hope the community will come together and find a solution, possibly with a blocksize increase. Until then, we are suspending our plans for the upcoming 2MB upgrade.

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.

Mike Belshe, Wences Casares, Jihan Wu, Jeff Garzik, Peter Smith and Erik Voorhees

 

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