Bitcoin Gold, the latest fork off the Bitcoin network depreciated by 75.9 percent twenty-four hours after it was launched. What does this mean for its future?
The idea behind Bitcoin Gold is simple. Concerned fellas in the crypto-coin network believe Bitcoin is becoming centralized and hope to create a decentralized version of the currency.
Bitcoin at the moment is mined mostly by firms in Asia who use state-of-the-art equipment and technologies. These firms confirm transactions made on the Bitcoin network. They aren't ubiquitous but they are quite powerful, as they invest millions of dollars in mining Bitcoin.
Bitcoin Gold arrives
This situation gave rise to a growing concern that the space is becoming centralized, as only a handful of players have the ability and resources to mine Bitcoin because it involves the use of expensive technological tools.
So, a bunch of programmers and developers decided to alter the code in the Bitcoin blockchain to create a new currency that any ordinary computer will be able to mine. October 25th was picked as the date, to create a fork in the network so Bitcoin Gold, a decentralized version of Bitcoin, could be birthed. And it happened.
The development team are a bunch of individuals and work on the project is quite slow. Bitcoin Gold is not expected to be available to investors until November.
From $528 to $127 in 24 hours
Going by recent events, BTG won't be competing with Bitcoin as predicted. A BTG futures market was opened a day before the fork and the coin was valued at $500. In the next 24 hours, it hit a high of $528 before plunging down to $127 on the day of the fork. On Bitfinix, the tokens hit a high of $2903 before falling according to Coindesk.
Although the bearish trend subsided and BTG rose a bit hours after, the bear sentiment persists. Right now, it is sitting at $123, a tad lower than the first major drop.
BTG trading market will be opened in November. We will see it rise and fall a lot as there will be a lot of volatility. It is also possible it will be worth nothing in a short time.
Nevertheless, this won't worry BTG developers who see it only as just a pet project. They say they don't really care about the money. They just want a decentralized Bitcoin that can be mined on common hardware.
Future not rosy but anything can happen
The huge BTG fall- does this suggest a fizzling out?
The immediate crashing of BTG shows that many don't value it and most people don't believe it will last. The general sentiment is that those behind this fork (pioneers and developers) don't have substantial experience in the crypto market and will abandon the project soon enough.
Does the failure of Bitcoin Gold mean the upcoming B2x will suffer a similar fate? Read about this soon.