- The price of bitcoin, the red-hot digital coin, was trading down 4.47% on Friday morning at $6,812 a coin.
- Since a plan to upgrade the coin’s network was called off, its price has experienced wild swings.
Bitcoin has been on a wild ride since a plan to help the red-hot coin scale was scraped.
Backers of the so-called Segwit2x proposal were considering to split from bitcoin’s main blockchain network, but power-brokers behind the plan called off their support for the upgrade on Wednesday. That mean’s the network will remain intact — at least for now.
Initially, the news sent bitcoin up near $7,900 per coin. Since then, however, it has tanked close to $1,100. On Friday morning bitcoin fell below $7,000, sliding to a low of $6,707.
It was trading down 4.47% at $6,812 at 10:23 AM EST, according to data from Markets Insider.
Segwit2x would have increased the size of the blocks underpinning the bitcoin blockchain network, which would have enabled it to potentially process more transactions. Backers thought the plan would help the digital currency scale faster.
Many bitcoin enthusiasts and traders viewed the cancellation of Segwit2x as positive, because it might keep the network intact.
“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, CEO of Steemit, wrote in a statement to Business Insider after news of the cancellation. “The case was made by the immediate price increase when 2x was called off.”
But on Friday, traders poured into bitcoin cash, a clone coin of bitcoin that has the potential to process much more transactions than both bitcoin and a potential Segwit2x coin.