Bitcoin value SURGES as controversial 'hard fork' called off

Bitcoin value SURGES as controversial 'hard fork' called off

Bitcoin value SURGES as controversial 'hard fork' called off

The group of mining pools and businesses behind the controversial hard fork are suspending their plans to trigger a twofold block increase at block 494,784, which was expected to take place around November 16.

Bitcoin, which was trading as low as $7,078 today, shot up to $7,879 after the letter was published.

"The Bitcoin community was in crisis after almost three years of heavy debate, and consensus for SegWit seemed like a distant mirage with only 30% support among miners", said Mike Belshe, BitGo CEO, about the formation of the SegWit proposal.

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

"It is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time", the executive says.

According to Belshe, Bitgo's goal has always been a "smooth upgrade for Bitcoin", but "keeping the community together" is more important than enforcing the block size changes. When that time becomes evident, Melshe wrote, he hopes that a solution will be found, possibly with a blocksize increase.

Users anxious about potential disruptions the upgrade could cause as Segwit2x, unlike previous forks, didn't have so-called replay protection, which means it might be possible to send the same transaction on one network and replay it on the other.

On Wednesday, proposals to implement the changes were suspended over fears they could divide bitcoin irreparably and damage the cryptocurrency's growth. The fork would have increased the block size to 2MB, a move many argue offers a critical elixir to the persistent capacity issues plaguing the Bitcoin blockchain network. "This was never the goal of Segwit2x".

But because bitcoin's transaction capacity is so small-roughly seven transactions per second-the technology can't be used for that without charging increasingly higher transaction fees.

We want to thank everyone that contributed constructively to Segwit2x, whether you were in favor or against.

Now that the SegWit2x drama is over, it remains to be seen how Bitcoin's price reacts - however, at the time of writing the price has risen to over $7,777. SegWit2x represents a hard fork of the Bitcoin code and would have been incompatible with older versions. "Furthermore, seeing the spike in bitcoin after the announcement shows that this move is welcome by the broader crypto community".

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