The anticipated hard fork in the bitcoin blockchain was recalled by the very engineers that were going to put it on. The hard fork started out as a controversial idea given the ill-fated past several hard forks in the market, but many thought it would still go on.
As news of the upcoming hard fork hit the market, bitcoin prices dropped following several record highs. After the currency responded to the largest futures trading firm in the world announcing that it would be offering bitcoin futures, it began to decline with the anticipation of the hard fork. The coin lost as much as 10% in value over the course of only a few days. As of 1:30 p.m ET on Wednesday, November 8th, the coin shot back up to a record high of around $7,700.
This means that the currency went back up by 10%. So why did this occur? The recent uptick in price can be attributed to the cancellation of the hard fork in the bitcoin blockchain known as SegWit2x. The leaders of the hard fork project, decided to suspend the fork due to a lack of full consensus amidst the bitcoin community. This represents a large paradigm shift in the industry as it shows that user input is something that is not only valued, but reflected in the actual market.
The decision to split hit a wide array of controversy as many developers thought it could mean a corporate takeover of the currency. The developers behind the fork recently stated that “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.”