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Hard Forks Hinder Mass Adoption of Cryptocurrencies: Study


Segwit2x Bitcoin hard fork

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A new study has concluded that hard forks are a threat to the adoption of cryptocurrencies.

This is because splits in the blockchain of a particular cryptocurrency tend to lead to the erosion of trust. Additionally, such splits reduce user’s confidence in the capacity of the affected cryptocurrency to continue thriving as a medium of exchange.

Interestingly, more hard forks are predicted to appear with experts expecting up to 50 hard forks this year. The study which was published in Springer’s Journal – Environment Systems and Decisions, was not bereft of solutions needed to ensure the stability of the bitcoin network.

“Suitable measures could include establishing metrics for key variables that can pre-emptively identify whether software changes are needed well before inflection points arise,” a public release of the study noted.

Survival Rate

While there has been a substantial increase in the number of bitcoin blockchain splits, the survival rate of the bitcoin forks, as well as the altcoins, has been low with many of them managing to last for a period of only a couple of months. There have been exceptions though and this includes Vertcoin, Dogecoin and Litecoin which have managed to last for years.

Additionally, Trump called for good governance arguing that clear guidelines that advise when software updates result in a net positive would be beneficial since they would assist in stabilizing cryptocurrencies. The study whose lead author is Benjamin Trump, an Oak Ridge Institute for Science and Education fellow, reviewed over 800 hard forks, source code forks and soft forks.

The fact that the Trump study concluded that cryptocurrency adoption is low because blockchain splits erode trust somewhat comes as a surprise as it rarely ranks high on the list in the various studies that have been conducted over the years.

Commonly Cited Reasons

A YouGov survey released earlier this month, for instance, indicated that the perception that cryptocurrencies are used for illicit activities was likely one of the major factors hindering adoption. In that study, about 25% of the respondents held the view that the biggest use case for cryptocurrencies was in making illegal purchases.

With regards to cryptocurrency investments, a Wells Fargo/Gallup poll released less than two months ago revealed that the one factor holding back investors was the perceived risk with three-quarters of the investors in the United States deeming it too risky.

In some quarters regulatory uncertainty and/or lack of regulation has been cited as one of the biggest factors hindering cryptocurrency adoption. As CCN reported late last month, this is a view held by the CEO of Coinbase UK, Zeeshan Feroz:

“The main challenge facing the crypto space at the moment in the lack of regulation, which leads to risk. We see the value in having some form of regulation for crypto exchanges as a means of ensuring due diligence and transparency in the crypto space.”

Featured image from Shutterstock.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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