The Cancelation of SegWit2x established a New All-Time High

Mike Belshe, CEO of BitGo, on November 8 with a blog post publication announced that the contentious SegWit2x hard fork scheduled to occur in this month would not take place due to a lack of community support.

The post stated:

“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 three years of heavy debate, and consensus for SegWit seemed like a distant mirage with only 30% support among miners.” Belshe added, “Segwit2x found its first success in August, as it broke the deadlock and quickly led to SegWit’s successful activation.”

Belshe stated:

“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.” Belshe concedes, “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 also predicted that:

“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.”

The market response was immediate, noticing a dramatic increase in new all-time high. A spike of $ 500 in less than one hour was a signal of a bullish reaction to the announcement.

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