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Leaders of the New York agreement have recognized that the integrity of the community is more important than an urgent increase of the block size limit and have canceled hard fork.

The announcement came out amid increasing critics of the update from the bitcoin community. On 8 November, the ideologist of the project Mike Belshe published a letter, admitting that the improvement did not meet the consensus of the bitcoin community.

“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. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time.”

With a majority of large mining pools standing for SegWit2x, it did not gain support from the community and could affect the stability of the bitcoin network and its further growth.

“Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x. As fees rise on the blockchain, we believe it will eventually become obvious that on-chain capacity increases are necessary. When that happens, we hope the community will come together and find a solution, possibly with a blocksize increase. Until then, we are suspending our plans for the upcoming 2MB upgrade.”

The SegWit2x hard fork was scheduled to be activated at the block #494,784 and was expected to happen on 16 November. The improvement was aimed at solving the problem of the scalability of the bitcoin system.

The letter of Mike Belsche was signed, apart from him, by other leaders of the SegWit2x project, which are Wences Casares, Jihan Wu, Jeff Garzik, Peter Smith and Erik Voorhees.

It is worth mentioning that even now, there is a risk of a split because some miners continue signaling support to SegWit2x.

After the announcement came out in public, the bitcoin price made a jump, reaching another all-time high at $7,900, but later it dropped to below $7,000. At press-time, bitcoin fluctuates at around $7,300. Its share in the total cryptocurrency capitalization decreased to 59% as investors and traders began to move their assets to altcoins.