Why Hardforks In Cryptocurrency Are Bad
I’ve always felt this but hardforks are simply bad, even if in the rare case they intend to fix a problem with the original currency. Most currencies which have issues like Bitcoin are simply not just a “single problem” but a collective bunch of inherent problems. But most often it is so clear like is the case with Bitcoin Gold that the team just copies and counterfeits a coin to unjustly enrich themselves.
Risks and Issues with Hardforks
- Loss of value, normally the original coin is at least temporarily devalued when a hardfork is done. People wonder which coin will survive or be more popular?
- Confusion leading to scams and fraud. Which is the real Bitcoin or real Bitcoin Gold?
- Many forks don’t make a wallet (more evidence of bad intention) and more likely that fraudsters will make a wallet that steals your coins (eg. John Dass and the Bitcoin Gold team).
- Community frustration and division.
Instead of hardforking it is much better to do what Cloakcoin or Litecoin did and the many others did by just copying it, making changes and starting their own blockchain. This ensures the process won’t allow fraud, confusion or devaluation of the original coin and no harm comes to the community that way.
All these coins have stolen value from the main coins like Bitcoin and then people ask why the value went down? If Bitcoin was not hardforkable I think it should be several times the value we see now, almost certainly 2/3s or more of the crypto market cap.