Just three days back, the second fork in the Bitcoin Network was activated, giving rise to another derivative cryptocurrency named Bitcoin Gold (BTG). However, after the hard fork was initiated, Bitcoin Gold has undergone quite a bumpy ride. Initially, the BTG website faced serious DDoS attacks which pulled down the website operations for several hours later.
Soon after the hard fork was initiated on Tuesday, the price of Bitcoin was around $5300. Within 24 hours Bitcoin prices showed a strong momentum recovering to $5700 and above and now shows a price of $5861.00 per coin, according to the CoinMarketCap Bitcoin Price Index.
However, during the same time, the price of Bitcoin Gold (BTG) plunged by nearly a whopping 75% from $528 to $127 and is now trading at $122.68 level. This is really surprising considering the fact that no exchanges have enabled deposits.
The Bitcoin Gold was created in order to offer competing rewards in the mining process thereby requiring affordable computing infrastructure as opposed to Bitcoins more expensive one. Moreover, just like in the case of Bitcoin Cash (BCH), the Bitcoin Gold will also be made available to everyone holding Bitcoin at the time of fork.
A few exchanges like Bitfinex, HitBTC and YoBit have already allowed users to start trading in Bitcoin Gold. In the major sell-off of Bitcoin Gold, exchanges Bitfinex and HitBTC contributed to maximum trading volumes.
Several independent analysts and financial institutions over the period of time have expressed mixed views over the split process. While some have stayed positive about it other believe that the split process poses a huge risk causing a large amount of confusion and uncertainty within investors.
Sol Lederer, blockchain director at Loomia, told CNBC: “These forks are very bad for bitcoin. Saturating the market with different versions of bitcoin is confusing to users, and discredits the claim that there are a limited number of bitcoins — since you can always fork it and double the supply.”
While on the other hand Bob Summerwill, chief blockchain developer at Sweetbridge, believes that splitting is a good thing allowing people to part ways having a contradictory view. In a word to Business Insider, Bob said: “Splits happen periodically in all open-source communities. Having everyone collaborating in a single project is ideal, but sometimes there are genuine differences of opinion, and network effects are not enough to keep everybody together, so a group secedes.”
At this point of time, it will be too early to predict where the prices for Bitcoin Gold are heading. However, one thing is sure that the developer and technical behind Bitcoin Gold will have to have to overcome the underlying issues of transactions complications and other. It will be only then when they will be able to create trust within the investors to welcome to the BTG platform.