13 Oct Bitcoin Gold Overview
Say “hello” to yet another token in the BTC family, BTG (BitcoinGold).
The hard fork, potentially launching October 25, will produce a coin that is able to be GPU-mined, using the Equihash algorithm for PoW. Equihash (also utilized by Zcash) is a memory-hard algorithm that is ASIC-resistant and optimized for GPU mining. Even Steemit used Equihash for the initially mined STEEM.
One of the Equihash advantages lies in its efficient verification. This could be important for light clients on constrained devices or even for implementing a Zcash client inside of Ethereum (think BTC relay, but Zcash).
There is plenty of speculation about BTG’s upcoming release, and we won’t know for certain how BTG will be valued until it hits exchanges. One thing that is certain: Video card prices are only going to skyrocket. If you are a miner, stock up now. As a memory-oriented PoW, BTG’s mining efficiency will be determined by the quantity of RAM in the miner’s GPU. Both AMD and NVIDIA have already started releasing GPU lines specifically for cryptocurrency mining, but many doubt that anyone will be able to create cost-effective custom hardware (ASICs) for mining in the near future. Most miners will likely follow the current trend of purchasing gaming GPUs for their needs. Hopefully, manufacturers will correct mistakes from the past and will produce the quantity of GPUs necessary able to keep the constant supply in stock to meet both miners’ and gamers’ demands.
Similar to the BCC fork, BTC wallets will receive the same amount in Bitcoin Gold on November 1. The token itself will most likely be tradable a few following weeks afterwards.
Recently, discussions have circulated about whether or not BTG is a scam. Most of these debates originated from Reddit post user EnviousArm, who declared BitcoinGold was fraudulent. EnviousArm’s points were:
- Unfinished PoW implementation: https://github.com/BTCGPU/BTCGPU/pull/15
- Relay Protection not finished: https://github.com/BTCGPU/BTCGPU/issues/18
- No change of difficulty algorithm implemented; they will compete with other GPU-mined coin for hashpower)
- No commits merged to main public repo in last 21 days
The biggest claim comes from the fact that BTG developers meant to run an ICO and “premined 16000 Blocks, worth at least 200,000 Bitcoin Gold.”EnviousArm did some research and came up with a past snapshot of BTG’s website that confirmed the ICO suspicion: https://web.archive.org/web/20170831032225/http://btcgpu.org/.
EnviousArm’s perspective sees BTG as untrustworthy: “since they are holding that information away from us and hiding it, this makes me believe that, BitcoinGold is in fact a scam and an attempt to milk the Crypto Community out of their money, please don’t fall into this scam and don’t buy BitcoinGold.”
BTG’s Dev Team issued a response to these concerns the very next day. The PDF released from the team refuted the claims that BTG is a scam. The team stated that the reason for the unfinished BTG coding was due to shortage of working developers, causing slow work flow.
Figure 1: Developer Response
Attached below is the PDF for your own interpretation.
It would be important to mention that the coin pre-mining of data is not happening at the moment, but the possibility has not been ruled out completely.
The dream of the BTG community is that this fork will level the playing field and disrupt the industrial miners like Bitmain, who some people believe has too much power over the space.
The timing of BTG is combative and is ultimately unhealthy for the market as a whole, causing a rift among consumers and raising a lot of questions. This fact isn’t lost on a number of traders, who are still hoping to see a recovery from the BIP91 Bitcoin Cash fiasco that gutted an excessive percentage of traders through a 6-week long bleed out of the alt-coin market, leading up to the mining block signalling the fork.
Bitcoin Gold’s timing is also excessively poor for another reason. Until recently, Segwit2x versus Bitcoin Gold weren’t differentiated for a large number of traders. To emphasize, Segwit2x is not Bitcoin Gold; that is BT2.
The jury is still out at CryptoSyndicate on whether or not Bitcoin Gold is viable, valid, or even going to be worth much. The primary selling point, “BTC mined by a GPU,” is basically ZEC. ZEC doesn’t do poorly in the markets and doesn’t require any market disruption, pissing off traders by stirring the already dented alt-pot that still hasn’t recovered from the BCC fiasco.
- Syndicate.Duy – Writer/Research
- Syndicate.Evan – Research
- Syndicate.Enrique – Editor