Bitcoin ‘2x’ Hard Fork Suspended Over Lack of Consensus

Bitcoin’s long awaited SegWit2x update has been suspended according to its organizers, who cited a lack of consensus for a clean upgrade.

Hard Fork Averted

In an email written by Mike Belshe, CEO and co-founder of wallet service BitGo, the SegWit2x project is being put on ice until the mining community can come to an agreement on bitcoin’s growth.

“Unfortunately, it is clear that we have not built sufficient consensus for a clean block size upgrade at this time,” Belshe said. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.”

Until consensus could be reached, “we are suspending our plans for the upcoming 2MB update, he said.

The fork, which was scheduled to occur sometime next week, intended to solve scalability issues bogging down the existing Bitcoin network. In particular, backers of SegWit2x want to double the size of bitcoin blocks to boost transaction capability.

The fork would have created two competing versions of bitcoin. The problem? Nobody is certain which one will be considered the “real” bitcoin. At the heart of the issue is which version of the cryptocurrency would get the all-important and much coveted BTC symbol on the major exchanges. Analysts have argued that the planned upgrade was the most divisive in bitcoin’s young history.

Market Activity

Anticipation for the 2x upgrade has been building for some time, with bitcoin investors scaling up their positions to capitalize on the anticipated chain split on or around Nov. 16. Bitcoin (BTC/USD) added roughly 25% to its value last week, as prices soared above $7,400 for the first time ever. Prices were down around 4% on Thursday but continued to trade well above $7,000.

It is unclear how the investing community will react to the averted fork. We do know that the historic event was a source of great anxiety for the original bitcoin backers. With a semblance of calm returning to the development community, bitcoin could he headed higher over the short term. Analysts at Goldman Sachs recently argued that a rally toward $8,000 is certsinly feasible over the short term.

Featured image courtesy of Shutterstock. 

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Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi