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Bitcoin's price falls following the cancellation of Segwit2x

(Image credit: Image Credit: Geralt / Pixabay)

Bitcoin's price has retreated by a significant $600 after reaching a new all-time high recently. This seems to be the consequence of a recently canceled upgrade to the underlying blockchain technology.

The Segwit2x upgrade, also known as a 'fork' in the community, was called off because there wasn't enough support in the community. The fork's goal was to increase transaction capacity, but many traders also believed it would result in a creation of an alternative currency, as with a couple of previous forks.

After reaching a record $7,800 in price, Bitcoin retracted to $7,123 in time of writing.

“When 2x was called off, it became immediately clear there’s greater consensus for a single bitcoin blockchain and therefore there is greater value retained in the bitcoin ecosystem," Ned Scott, chief executive of Steemit, a blockchain-based social network, told CityAM.

"Our goal has always been a smooth upgrade for Bitcoin. Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together," said Peter Smith, co-founder and chief executive of bitcoin wallet Blockchain in a blog post, along with several others involved in the split.

"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."

It is believed that capacity increases are inevitable, and that the community will eventually have to come together and find a solution.

Image Credit: Geralt / Pixabay