With the not so surprising announcement that the SegWit2x (B2X) fork has been cancelled, many are left wondering why did developers at SegWit2x put in the effort in the first place to try and launch the hard fork? What was the point or purpose of cancelling it? Well their are a number of theories as to why the developers did what they did. However there is some serious doubt about whether the SegWit2x fork has actually been cancelled with many people and big exchanges having a vested interest in seeing it happen. It is very likely to activate as there are fully operating activiating nodes for B2X to go operational despite it being so called “cancelled”.
One theory as to why the so called SegWit2x had been “cancelled” may have been due to its failure being planned from the very start. The SegWit2x hardly ever gained enough support within the general Bitcoin community with the exception of miners. This was largely due to it oddly enough being a very secretive project and to make matters worse it kept changing its coding, with it initially including replay protection which is a major security tool to prevent vulnerabilities in the system. Then the developers for whatever reason decided not to include replay protection and a few weeks before the hardfork they included replay protection again. Secrecy combined with the lack of desire to have adequate safety? People began to raise their eyebrows about the real intentions of this project.
Such activity seemed extremely strange and irregular, especially considering all previous hard forks including the Bitcoin Cash were done in a rather open way and in a manner that united the community and had community backing, with safety features in place, with its obvious and noticeable benefits being advertised and planning and development being logged and their being constant updated and announcements. Thus having community backing and support to launch the Bitcoin Cash in the first place. As opposed to Bitcoin Cash, B2X ticked all the boxes on the “what not to do list”, making its launch a disaster and a failure. With cryptocurrency stakeholders such as PaymentMarkets, Coin Desk’s analyst Ariel Deschapell, CryptoTrader, Bitcoin Isle and many other stakeholders all questioning its viability and predicting it would fail, including the hedgecoingroup, this further raised eyebrows and suspicion about SegWit2x’s real intentions.
You can check out our article here – https://www.thehedgecoingroup.com/single-post/2017/11/08/B2X-BCG-are-Doomed-to-Fail-and-This-is-Why
So why spend all that time and energy into creating something that developers may want to see fail? One theory is the developers knew a SegWit2x fork, if it was canceled would cause the price of the Bitcoin to drop in price, thus enabling them to nab a Bitcoin at a bargain, allowing for them to make almost instantaneous profit. But as we have stated here on the hedgecoingroup before that, the Bitcoin has grown to be more resilient and the FUD (Fear, Uncertainity and doubt) no longer effects the Bitcoin like it used to, especially due to many financial institutes investing in the Bitcoin and less likely to act on emotions unlike amateur traders. So when the Bitcoin did not fall as much as developers hoped for it to, they decided to switch to Bitcoin Cash which is Bitmain’s pet, whose CEO is Jihan Wu (A SegWit2x stakeholder). Thus spreading allegations that the developers of the Bitcoin moving to Bitcoin Cash, further fueling the FUD fire which caused a drop of more then $1300 in the Bitcoin and an increase in Bitcoin Cash of more than a $1000. Allowing for all those with insider information profiting from an increase in the price of the Bitcoin cash, which at its peak of $1950+ then crashed downwards to less than $1100 in the matter of a few hours. Again, we have to state at this point in time despite this being a logical argument, it is simply a theory of what might have happened.
In conclusion, despite the FUD factor decreasing the price of the Bitcoin by about $1300. Bitcoin in the past 24 hours has began its recovery going from being less than $6000 to more than $6500 dollars. As the FUD flames are put out, one has to question how quick manipulation still can effect the Bitcoin. But with more and more financial institutes and Nations implementing and using the Bitcoin, the window to make a quick buck at other peoples expensive by using manipulation and fear tactics is closing fast.