New Oak Ridge Institute Study: Cryptocurrency Hard Forks Jeopardize Governance Stability
A new study on digital currencies has now published its findings, suggesting that the stability of cryptocurrencies is threatened by hard forks, the software updates done on them. However, the study points out those clear guidelines when it comes to software updates could go a long way in helping the digital assets stabilize.
Led by Benjamin Trump, and academician, and the Oak Ridge Institute for Science, the study was done by a group of researchers who looked into the state of cryptocurrencies “hard forks” by investigating more than 800 software forks from Bitcoin.
Governance Challenges Also Threaten Crypto Stability
While the study agrees that cryptocurrencies have the potential to make significant change in information and commerce sectors on a global scale thanks to their underlying blockchain technology, it argues that governance challenges also threaten the stability of digital assets.
Trump argued that:
“Disruption of a cryptocurrency's blockchain in this way might cause people to lose trust in it and its capacity to survive as a reliable vehicle of exchange,”
According to the study analysis, a fair amount of bitcoin forks and altcoins died in several months, although there are many of them that have lasted for years. The researchers also noted that hard forks are likely to become more regular, with an estimated 50 of them in this year alone.
Trump explained that:
“Hard forks are a threat to maintaining a stable and predictable operating platform that is essential if cryptocurrencies are to be adopted for daily financial transactions.”
Study On The Possible Future Of Bitcoin As A Medium Of Exchange Internationally
When it comes to the future of Bitcoin as an approved medium of exchange internationally, Trump noted that operators within the Bitcoin network, who include exchanges, wallet, developers, and crypto miners, will need to have better governance in order to provide better stability of the coin.
At the end of August, there was another similar study conducted by Statis Group, an ICO advisory firm, which suggested that the price of Bitcoin could potentially hit $98,000 in the next five years. According to the published report, the value of crypto assets that would be needed to support the economy will go up tremendously, reaching about $500 billion in the next year alone and $3.6 trillion by 2028.