SegWit2x was supposed to double bitcoin's block size to 2 megabytes, which in practice increases the network's speed and reduce transaction fees. Bitcoin's price briefly surged to a new high of $7,848, compared to less than $1,000 at the start of the year. However, in light of an insufficient consensus for "a clean blocksize [sic] upgrade", as Belshe writes, "continuing on the current path could divide the community and be a setback to Bitcoin's growth".
Bitcoins are systematically produced from something called the "blockchain".
The SegWit2X leaders, who include prominent bitcoin figures like Xapo CEO Wences Casares and Chinese mining pool leader Jihan Wu, said they made a decision to suspend the project due to a lack of consensus in the bitcoin community.
We want to thank everyone that contributed constructively to Segwit2x, whether you were in favor or against.More news: Nintendo Switch finally embraces streaming as Hulu touches down
The group still has hopes that the block size will be increased further down the line, once there is more agreement from stakeholders. "It would have been great for bitcoin to prove its resiliency once again and to strike this scenario off the "fear list". Exchange Coinbase planned to disable trading of bitcoin for eight hours before the fork, for example.
The significance of this latest development has triggered a number of reactions and from the Bitcoin community. But the Segwit2x fork was seen as a credible threat to the original bitcoin chain because of the amount of industry support behind it. One contributor called the hark fork a "ham-fisted agricultural attempt", while another said, "2x was gone, [but] if we are really going to upgrade it [the blockchain] needs to be at least 10x better than this, transparent, well tested, replay protected, and decentralized". "Cryptocurrency is still experimental and repeated forks can fracture the community into tiny siloes and undermine the very concept of non-governmental money". Every small mitigation of a risk enhances value, and this event is no different.
The price of bitcoin sky rocketed on the news. With the existing block size allowing only seven transactions per second, the adoption of Bitcoin as a mainstream digital currency remains uncertain. "Furthermore, seeing the spike in bitcoin after the announcement shows that this move is welcome by the broader crypto community".