“Segwit2x Accelerate The Entire Reaction Process Like Catalyst”
The controversial Segwit2x was called off in an email singed Mike Belshe, Wences Casares, Jihan Wu, Jeff Garzik, Peter Smith and Erik Voorhees on 8 Nov 2017. The market responded this good news with relief and another all time high at touching 7,888 USD. Eight is lucky number for Chinese and everyone is happy. It seems the only victims in the civil war are those B2x buyers at 0.1+.
Viabtc, one of the hardcore supporter of big block and BCH, tweeted withdrawal of support from NYA.
“SegWit2x has seen failure due to lack of consensus support. We therefore have removed the NYA vote in our blocks.”
One’s failure is another’s victory. Core supporters are celebrating the event by removing their [NO2X] hat on their twitter accounts. The volatility triggered by the hard fork suspension are covered by major financial media in China. But insiders look at things differently.
So far Bixin, Antpool and GBminers are still signaling support for NYA.
Why do Chinese miners retreat from their standing in Segwit2x? GT Zhou, a bitcoinist with around 200k followers on weibo, said:
“The (price) rise of Bitcoin is the solution to everything, including the fork. For example, China has encountered many problems during its development process. But as long as the country is still developing, these problems would be solved. In terms of Bitcoin, the rise of price is the solution. In the face of rising bitcoin, mining dictator and other anti-core groups have to surrender to CORE and cancel the hard fork.”
His argument is based on the “low” market value of bitcoin network, which is still in its infantry and too weak to withstand external attacks.
It’s not a big surprise to the Chinese community that SW2X would fail. In a post on 8btc forum, the OP predicts that Segwit2x would be doomed and BCH would prevail in the end.
Wu Guanggeng, founder of Bixin, said this morning:
“After the emergence of BCC on 1 August, seg2x is dead in the water.”
With the alert of segwit2x being disarmed, BCH hard fork is one of the few among the certain things. There have been demands for BCH in OTC market in China.
Another reason for the Segwit2x suspension might comes from the concern of Tether, the tokens based on Omni protocol and now has been widely used in the market. With the recent adoption of China-related exchanges, around 65 million USDT tokens to the market in November alone, creating a total supply of 535 million since its inception in October 2014. With 540 million transaction volume in the past 24 hours, USDT has become a very important infrastructure for the whole system. It would be hard to imagine how devastating it would be if the liquidity provider based on bitcoin network is disrupted by a hard fork without replay protection.
Not a single entity could afford to see the collapse of the system and survive alone.
In the end, Haibo Wang, engineer from Bixin, summarize it well:
“Segwit2X is an interesting political product. It emerges at a crucial moment when that cleverly unlocks the deadlock between two parties and then paves the way for their respective development. In the end it chooses to self destruction at another crucial moment. It doesn’t even seem to exist in a longer time span but it accelerates the entire reaction process like a catalyst.”