Another Study Sheds More Light On Slow Cryptocurrency Adoption
Many studies have also been carried out to determine the reason behind the stagnated adoption.
Hard Forks to Blame for Slow Bitcoin Adoption, Study Claims
Over the years, many stakeholders have been scratching their heads on why the cryptocurrency adoption is sluggish. However, a recent survey has come out to answer this question. A research published by Springer’s Journal has stated that hard forks are responsible for this stagnation.
The study opines that blockchain splits anchored on a specific crypto normally ends in mistrust from users. According to researchers, splits are also responsibly reduced confidence from users in the ability of the affected currency to keep soaring as a channel of trade.
The study further stated that in the future, we should expect more hard forks to emerge. Before the end of 2018, at least 50 hard forks are expected to emerge. The study further provided a number of solutions that will promote stability of bitcoin’s system.
Researchers think that there is a need to set up metrics for an important variable with the ability to identify if software changes are required prior to the rise of inflection points.
Recently, the market has witnessed a rise in bitcoin blockchain splits. Similarly, the ability to survive for bitcoin forks has remained low. Additionally, also altcoins are having a hard time in the market. Majority of the splits only survive for a number of months. Vertcoin, Litecoin and Dogecoin have stood out, managing to survive for years.
Benjamin Trump from Oak Ridge Institute is on record stating that there is a need for better management. He notes that we need to have well-defined protocols that detail when software updates lead to a net positive. He said that it is key to strengthen cryptos. Trump is also the author of the study.
Despite the survey highlighting that trust issues are to blame for slow crypto adoption, other reasons have been thrown around too. Over the years, different studies have come up with different conclusions on this thorny issue.
Common Reasons For Slowed Adoption
In early September, YouGov made public contents of a study regarding crypto adoption. In the report, it was revealed that the notion that cryptos can aid criminal activities was among major hindrances for the slow adoption. Interestingly, 25% of those interviewed think that cryptos major use is to facilitate illegal purchases.
Wells Fargo in collaboration with Gallup poll also conducted a survey on the same back in July. Majority of the interviewees think investment in cryptos was risky because three-quarters of the investors in the US view it as a risky affair.
Elsewhere regulations have also been cited as a major barrier. Tough and lack of regulations in some jurisdictions can be the reason why many are not adapting cryptos in their daily transactions. The same view is supported by Coinbase UK boss Zeeshan Feroz.