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What Is Bitcoin Gold?
Bitcoin Gold represents cryptocurrency as a hard fork of Bitcoin (the cryptocurrency with Bitcoin fundamentals), created to put digital mining back into the hands of regular people instead of needing specialized mining equipment.
Bitcoin gave the traders more opportunities in the year 2017 when it introduced its two new branches, Bitcoin Cash and Bitcoin Gold, in short, known as BCH and BTG, respectively. Introduced almost at the same time, however, the purposes of both the branches were different. While Bitcoin Cash was concerned with scalability, Bitcoin Gold was introduced to protect the interest of the traders in the market.
From its early days, Bitcoin has attracted many traders and spectators. This is why with its growing popularity, more and more variety of investors entered the market of Bitcoin. These traders brought new ideas to the Bitcoin industry. Along with these new traders, Bitcoin Miners also joined the market.
In the beginning, Bitcoin mining was simple. Any trader could mine a Bitcoin with a currency like GPU. As more miners joined the market, traders realized that special mining tools like ASICs could help them have the upper hand in mining. But, such types of equipment were not affordable for every investor or trader. They were costly. So, the traders who were able to invest in equipment like ASICs could dominate the mining industry.
As their interests were not being protected and looking at the dominance of some miners in the industry, some traders claimed that this could turn out unpleasant for Bitcoin’s future and urged the need for new Bitcoin branches that could switch the Bitcoin’s algorithm, that is, PoW (Proof of Work) to Equihash instead of SHA256.
As a result, Bitcoin Gold was introduced which helped in restoring the market to its former place where Bitcoin, now Bitcoin Gold, can be easily mined with GPU and hence decentralized bitcoin trading.
What is the price of Bitcoin Gold?
Bitcoin Gold Chart
Bitcoin Gold Price History
If we search for the Bitcoin Gold charts or past price actions, we will observe that it had a bumpy start accompanied by a hard downward slope and continued to be mediocre since then. Bitcoin Gold was introduced in October 2017, and it started at $398 which swiftly came down to $112 within a few days. In the same month, the price showed an all-time high of $538, but even that could not prevent another fall in the Bitcoin Gold Price. In the next month, that is November, the price again fell and was being traded below its support price level. But again, in the mid of December 2017, Bitcoin Gold showed an upward trend accompanied by Bitcoin that reached the price level of $20,000. However, after that, Bitcoin Gold fell back to its support level price and even further lower. This was marked by the start of crypto winter. After the fall, there was a continuous downtrend in the price momentum accompanied by little surges now and then.
Although Bitcoin Gold couldn’t recover to its former glory, Bitcoin has only become stronger and stronger. Being a shadow of a cryptocurrency that is currently ranking on top as per the market capitalization, which is approximately $644B, BTG could not live up to the standards of BTC. However, it is still a part of the crypto market and is still traded. But it is not meant for those planning to make profits with price changes because the upward trend in BTG is very short-lived. The price momentum for BTG has mostly been stagnant, and there was not much surge in demand.
Bitcoin Gold Potentials
Bitcoin Gold was branched out of Bitcoin not to bring a competitor to the BTC but to decentralize the mining power from the few hands who could afford the mining tools, like ASICs, and dominated the mining industry. BTG may not perform great on the cryptocurrency end, but it did solve the purpose it was created for. It helped the traders, who were forced to leave bitcoin mining due to the lack of affordability of mining equipment, re-enter the market without needing such equipment or tools.
It was seen that the creation of BTG did not affect much of the BTC’s popularity like the BCH (Bitcoin Cash) did. On the one hand, BCH attracted the BTC miners; on the other hand, BTG helped the miners to be able to mine with just basic tools. While BTG was created to oppose tools like ASICs, BTC attracted more and more miners who could afford expensive machinery. Due to this, almost everyone was able to do bitcoin mining.
As discussed above, the glory period for Bitcoin Gold lasted only for a few months after its birth. The market witnessed its peak during that time, which only fell after that with random trips in the price momentum. Although the bitcoin rallies tried to pull up the value of BTG, even that could not help it stay up for a longer period.
From the very beginning of 2020, BTG remains in the confined bars of certain price levels and hasn’t shown any surprising move. Its price level fluctuates between $7 to $10 and has not gone above or below this price level. This shows the mediocrity of this cryptocurrency. Also, fewer and fewer people heard about anything happening in the BTG market as it did not get much attention from the traders. Therefore, it does not hold much importance to the investors as they may not see much potential in this crypto.
Bitcoin Gold Price Prediction
Bitcoin Golf Price prediction shows that Bitcoin Gold will continue rising trend based on Bitcoin price bullish trend. This crypto as a Bitcoin hard fork has correlated price with Bitcoin. In 2022, Bitcoin Gold can go above $150 and previous highs in 2021.
At the end of the year 2020, many speculations have been made regarding the BTG price prediction. One such prediction was that the BTG would experience an upward trend in the year 2021. And this was true to some extent. The price of Bitcoin gold did move upward, slower at the beginning of the year, and then showed a sudden uptrend at the beginning of April 2021that continued to the mid of May 2021. After that, it again started to come down with occasional upward trips. This uptrend could result from the sudden popularity that the BTC gained in the market, that people started to see some potential in BTG. But that was short-lived. However, some also see a gloomy future for BTG, stating that it may fall to lower than $5 by the end of 2021. On the other hand, some predictions also state that it will become much more popular in the coming years, where 2022 and 2023 will see a much better increase in the market value of BTG.
Looking at the past performance of the BTG price index, which has remained flat for the past few years, it isn’t easy to believe such predictions. Therefore, stating that BTG will suddenly gain popularity in the upcoming years remains uncertain. Even with an extreme hike in demand for BTC, BTG did not show any extreme changes in the momentum.
So, amongst the mixed predictions, if we see the past of Bitcoin Gold, we could say that the pessimistic predictions of the traders could be the future of BTG. But, the ever-growing popularity of BTC can also bring BTG under some of the limelight, and as a result, it may also be able to see a surge. In simple words, the future is uncertain, and the market will always remain unpredictable. So, it is to be seen what the future holds for Bitcoin Gold in the crypto market.
However, some traders may also opt to trade BTG through CFDs (Contracts for Difference), which could help them gain some profit without actually acquiring any cryptocurrency. However, many do not suggest this method as the leverage involved amplifies the profits or losses.
Conclusion
BTG branched out of BTC to solve a purpose, which was to decentralize Bitcoin mining. However, it may have solved its purpose; Bitcoin gold never gained much attention from the traders and investors in the market. It remained a mediocre cryptocurrency in the market, which had very little or no changes in its flat curve. The Bitcoin gold future is in the shadows, and time will only tell if the investors will see its potential.
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He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
