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Bitcoin Hits $7800 After Segwit 2x Called Off

Segwit2x cancelled due to lack of “sufficient consensus”

The Segwit2x development team has called off any plans for the Segwit2x hard fork, previously set for mid-November. The report published only an hour ago was co-signed by the Segwit2x figureheads, including Erik Voorhees of Shapeshift fame and Jeff Garzik, the lead developer on the BTC1 repo. Jihan Wu of Bitmain, Wences Casares of Xapo and investment banker Peter Smith are also co-signatories. Mike Belshe, CEO of BitGo, sent out the email.

The report states that their goal “has always been a smooth upgrade for Bitcoin”. For anyone who has been active on social media, github repos, or even just chatting to Bitcoin evangelists, it would have been clear that the Segwit2x change was anything but a smooth “upgrade”. In a sudden turn of events, the Segwit2x figureheads stated that their dedication to keeping the Bitcoin community together trumped their beliefs over on-chain scaling and big blocks:

"… 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."

All plans for the “upcoming” 2MB upgrade have been suspended until clear and present consensus can be achieved. The use of the term “upcoming” in the report show clear intentions to continue pushing the rhetoric of on-chain scaling and big blocks, despite the majority of the community’s focus being on scaling through off-chain solutions such as the Lightning Network.

Bitcoin price skyrockets

At the time of publishing, Bitcoin is rocketing past $7700 USD. In stark contrast, Segwit2x futures have crashed from $1.2k USD to $300 USD in under the span of an hour. This free-fall ought to continue to $0 USD, as the chainsplit tokens only have value in the event of a hard fork.

Screenshot captured 18h10 GMT

[UPDATE: Segwit2x futures noting a short-term recovery to $450 USD in the interim. The only explainable cause is unsubstantiated speculation]

While the report had intentions of mitigating potential damages to the Bitcoin community, it’s clear that many people who bought into the Segwit2x hard fork are paying the price in cold hard crypto.

In line with Bitfinex’s Chainsplit T&C, all split BT2 tokens (representing Segwit2x) will be worthless:

In the case of BT2, Segwit2x shall be deemed to exist only if a blockchain has diverged incompatibly from the Incumbent Blockchain. Any settlements of BT2 shall be to B2X. If no Segwit2x blockchain exists pursuant to these T+Cs, BT2 tokens shall be deemed to have a value equal to zero and shall be removed from the platform.

Bitcoin veterans who saw uncertainty in the Segwit2x hard fork made sure to steer clear – but newbies, enthusiastic traders hoping to make a quick buck, and those who genuinely believed in figureheads like Mike Belshe and Jeff Garzik are now suffering. It’s a tough lesson learnt in trying to circumvent decentralized governance.

"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

These words are sure to leave a bitter taste in the mouths of those affected.


Stick to this space for further updates.

Featured image from Pexels

By Daniel Dalton via Crypto Insider

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