The orchestrators behind the controversial Segwit2x hard fork have suspended the proposed software update indefinitely. The update, scheduled for block 494784, was meant to expand Bitcoin’s block size from 1MB to 2MB.
An email sent on November 8th by BitGo CEO Mike Belshe revealed that the organizers behind the scaling proposal would not implement the block upgrade as planned. In the email, Mr. Belshe expressed concerns about the controversy that surrounded the proposed 2x fork, conveying that there was not ample community consensus to justifying moving forward:
“Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together. 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. This was never the goal of Segwit2x.”
And while Mike Belshe still believes that “on chain capacity increases are necessary,” he holds that, until the Bitcoin community can agree upon a scaling solution, “we are suspending our plans for the upcoming 2MB upgrade.”
The announcement came as Bitcoin was steadily climbing to all time highs and encroaching on $8,000. Immediately following the announcement, Segwit2x futures tanked and various altcoins experienced significant gains.