Most members of the global bitcoin community heaved a collective sigh of relief as a so-called hard fork; SegWit2X was averted on Wednesday, 8 November, 2017.
The organisers of the controversial fork or bitcoin software update said they were suspending the attempt to increase the block size over lack of “sufficient consensus for a clean block size 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,” wrote Mike Belshe, CEO and co-founder of bitcoin wallet software provider BitGo. Belshe is one of the leaders of the SegWit2X Project which began over three years ago over the question of how to allow more transactions through the bitcoin network.
The plan for SegWit2X, according to Coindesk, was to trigger a block size increase at block 494,784, expected to occur on or around 16 November. The leaders of the project said their aim was to increase bitcoin’s transaction capacity constrained by the nature of the software’s rules. It was nicknamed SegWit2X because of the two solutions it brought together in compromise – SegWit and a hard fork to a 2MB block.
News of the suspension caused the price of bitcoin to reach a new milestone of $7,888 on Wednesday. But it quickly reversed to below $7,500 before climbing to $7,700 in the evening. On Thursday the price has dropped to $7,086.70 on the Cointelegraph platform and $7,095 on the Coindesk Price Index.
In Nigeria the price, bitcoin on the Luno platform was at N2.636 million on Thursday, a drop from the high of N2.698 it placed on Monday, 6 November.
Prior to the cancellation, Tim Akinbo, a bitcoin exchange operator in Nigeria had expressed concerns over SegWit2X over the lack of clarity on the rules.
Following the cancellation, Akinbo said he sees the market regaining some level of stability.
“With regards to trading, the market will always do what the market does; it would probably reduce a little bit of the speculation that built up as a result of the potential fork which was cancelled.
“This goes to show how resilient the system is; whereby it is nearly impossible for a group of few people to hijack the network. Bitcoin is not a democracy but a network consensus. Everyone must be on board for changes to the protocol to go through,” he said.
Bitcoin activities on BitStamp showed that a lot of speculators were beginning to sell due to no fork dividend.Businessday.