Hard forks hinder mass adoption of cryptocurrencies

According to a new study, hard forks pose a threat to the mass adoption of cryptocurrencies. This is because forking the blockchain of a particular cryptocurrency results in a loss of trust. In addition, such ramifications reduce user confidence in the ability of the primary cryptocurrency to continue to develop as a medium of exchange, the study says. Interestingly, 50 new hard forks are predicted to appear this year.

The study of geographic information systems and decisions (Environment Systems and Decisions), which was published on the Springer electronic journal website, lists the factors necessary to ensure the stability of the Bitcoin network. These factors include "establishing metrics for key variables that can pre-identify whether software changes are needed well before inflection points occur."

Despite the significant increase in the number of splits on the Bitcoin network, the survival rate of Bitcoin forks as well as altcoins is low, with many only able to survive for a couple of months. But there are exceptions, including Vertcoin, Dogecoin and Litecoin, which have held up over the years.

Benjamin Trump, the study's leader, noted that clear guidelines that recommend when software updates lead to a positive outcome would be useful because they would help stabilize the cryptocurrency. 

Trump, a research fellow at the Oak Ridge Institute for Science and Education, looked at more than 800 hard and soft forks as part of the study. The fact that the researcher came to the conclusion that forks hinder the adoption of cryptocurrencies is a surprise, since no study has previously made such conclusions. 

Unofficially, a similar opinion was expressed by the American Nobel Prize laureate, economist, scientist and best-selling author Robert Shiller. In one of his interviews, he said that Bitcoin could disappear in 100 years - and the reason for this will be hard forks.

According to a YouGov survey conducted earlier this month, the most common problem preventing the adoption of cryptocurrencies is the possibility of using it in illegal activities. 25% of people who took part in the study believe that cryptocurrency is used mainly for making illegal purchases. 

When it comes to investing in cryptocurrency, a Wells Fargo/Gallup poll released less than two months ago found that most investors simply believe cryptocurrency is too risky an investment.. In addition, an important factor hindering the adoption of cryptocurrency is the lack or uncertainty of regulation.