What Happened to SegWit2x Fork?
The contentious SegWit2x fork for bitcoin has stalled. In fact, it could be called off entirely.
The proposal was aiming to double bitcoin’s block size to two megabytes. A move that had divided the bitcoin community. The debate was fierce, with both sides fighting for what they believed was the ‘real’ bitcoin.
Essentially, it boiled down to the fact that most of the core developers and individual supporters saw SegWit2x as a move by miners to gain more control. The upgrade would likely have improved bitcoin in the short term, but would have likely boxed-out a lot of small miners. Meaning that the established miners with large operations would effectively gain more overall control. Which could give them the ability to influence bitcoin’s price through collusion if they wanted to.
At Odds with Bitcoin’s Values
Basically it could have resulted in an OPEC-style cartel, where supply and demand is dictated by a few powerful players rather than the market. The very definition of a centralised system. Something that is completely at odds with bitcoin’s values.
That scared a lot of people. Which is why this fork was such a pivotal moment in bitcoin’s journey.
It’s looking more likely than ever that this scenario won’t play out, though. Today the fork was suspended indefinitely. The lead developer of SegWit2x conceded defeat in a brief email, stating:
‘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… We are suspending our plans for the upcoming 2MB upgrade.’
Bitcoin Price Reaches a Fresh High
With the uncertainty gone, bitcoin hit a fresh high of US$7,800 following the news.
It proved that the bitcoin community could reach consensus without a centralised authority. Which is a key milestone for the cryptocurrency moving forward. Though it means bitcoin holders won’t receive any free coins, as in previous forks.
It’s probably for the best. What bitcoin really needs at the moment is stability. A nasty split and fight for the bitcoin brand wouldn’t have helped either side at this point.
Though the SegWit2x supporters say they haven’t given up yet. The group will keep developing their software and will look to revise their claim in the future. They’ve even stated that they support other crypto chains, ‘…such as bitcoin cash, litecoin and other bitcoin-family chains.’
Bitcoin’s price has since retreated to US$7,327 at time of writing. It seems that all the people looking to get ‘free’ SegWit2X coins have put their money back into altcoins. With 19 out of 20 of the top cryptos by market cap all up in 24-hour trading.
It means bitcoin can now move on and focus on the bigger picture once more. Which means that, with uncertainty abating, now could be an ideal time to consider investing in bitcoin. Especially with Wall Street-backed futures markets on the horizon. Find out how you can get a hold of some bitcoin today using our handy report.
Junior Analyst, Money Morning