Around this time last year, many retail crypto investors subscribed to the economic theory that cryptocurrency hard forks — the ones that result in irreversible network splits and create new blockchains — were a net positive for their portfolios. “How could they not be?” they asked. “It’s free money!”
Indeed, at that point, the two most prominent cryptocurrency hard forks — Ethereum Classic and Bitcoin Cash — had each proven to be a boon to investors who held on to the coins on both sides of the split. However, both of those forks occurred either shortly before or amidst a historic crypto market rally that masked weak fundamentals in a variety of projects. Absent the sort of black swan event that the cryptocurrency market experienced last year, it seems that when it comes to truly contentious hard forks, the whole may be less than the sum of its parts.
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