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SegWit2x, that could effectively lead to a Bitcoin hard fork, has been canceled by the community members behind the original initiative. The event was expected to take place on November 16th. The reason why it was cancelled is simple. SegWit2x failed to convince enough people to join its cause and make the SegWit2x blockchain the new mainstream Bitcoin blockchain. The Segwit2x effort was aimed at improving the scalability of Bitcoin and increasing the block size to 2MB.

The team behind the cancelled upgrade believes it is more important to keep the community united than to introduce technical innovations. “Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together,” SegWit2x backers said in their memo. “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.”

Consequences

It would now be harder for Bitcoin to compete with younger and, most importantly, more technically advanced coins for the position of the leading mean of exchange. Its dominant position as a store of value is not in any way threatened, however. Speculators have also lost a valuable opportunity to capitalize on a newly created coin, which is not of a major importance for the rest of the market. The price action of BTC reacted to the announcement with a sharp increase but was later corrected.

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