SegWit2X canceled: Bitcoin price rises and then falls rapidly

The fork scheduled for 18.11.2017 was cancelled yesterday at 17:15. We wanted to pass on this news directly to you, so that you can understand why all Altcoin prices on coinmarketcap.com are green and especially the Bitcoin price has just fallen dramatically after it rose again for a short time.

Mike Belshe cited the lack of consensus in the Bitcoin community as the reason for this decision. Belshe writes in the announcement that in his opinion the cohesion of the Bitcoin community is initially more important than the Segwit2X update. In order not to jeopardize the growth and current success of Bitcoin, the core development team has therefore decided to withdraw Segwit2X indefinitely.

Many investors had probably invested a large part of their capital in Bitcoin in the last days and weeks, hoping that the fork would bring back “free money”.

With the upcoming fork, it was initially unclear whether there would be another spin-off in the form of a new block chain, or whether there would only be a “software update” of Satoshi Nakamoto’s original Bitcoin code.

Originally, this fork was decided upon by a number of Bitcoin companies in spring 2017 as part of the solution to the ongoing scaling debate of Bitocin. The “New York Agreement” sets out the plan to make Bitcoin transactions faster and cheaper.

In August the first important change was already initiated and SegWit was introduced. This optimization meant that more transactions could be stored and processed in a Bitcoin block, thus increasing the speed of the block chain.

SegWit2X was to double the block size, from the original 1MB to 2MB, paving the way for a second layer solution (also known as “Lightning Network”). However, the approval rate for among miners for Segwit2X has recently dropped and is now below the important 80% mark.

Similar to the last hard fork between Bitcoin and the Bitcoin Cash that branched off from it, this time there was the same hope of skimming some free cryptocoins again.

If you have stored Bitcoin on a stock exchange such as Bittrex before the Bitcoin Cash Fork, you automatically have the same amount of Bitcoins paid out in Bitcoin Cash or credited to your account. This goal was probably also pursued again by numerous investors.

 

But what does the cancellation of this important update mean?

First, the Bitcoin price rose to over 6,700 Euro per token, only to fall to 6,260 Euro within a few minutes (as of approx. 7:30 pm).

The curse that has lain on the Altcoins in recent weeks also seems to have been broken. Nearly all coins are very much in the green zone and show a positive development.

Which long-term effects this decision of the Bitcoin community will have on the further course of events, however, will probably be shown in full strength in the coming weeks. To date, Bitcoin has apparently not been able to stop anything, no matter how negative the news was – the share price has continued to rise steadily.