The volatility of the value of Bitcoin Gold (BTG) has grown strongly in the last month. The coin jumped sharply at the end of August, then rolled back, after which it resumed growth.
Bitcoin Gold is one of those cryptocurrencies that grew after the market collapse in July, and is now aimed at overcoming its historical highs.
What is BTG? How is it different from Bitcoin? You may have heard about this altcoin, but you don't know all the details of its protocol.
In our article on Bitcoin Gold, we will tell you more about the protocol of this cryptocurrency and evaluate its long-term prospects.
What is Bitcoin Gold and what is its difference from Bitcoin?
Bitcoin Gold is the result of the bitcoin blockchain hard fork in October 2017. The previous hard fork in August 2017 led to the formation of Bitcoin Cash (BCH). A hard fork is a division of a single blockchain, in which a cryptocurrency alternative to the original one is formed. It also leads to changes in the cryptocurrency protocol.
So what is the difference between Bitcoin Gold and Bitcoin Cash? The purpose of the hard fork, in which BCH was formed, was to increase the size of each block in the blockchain to increase the number of daily transactions. And BTG was created as an open source protocol to further decentralize mining. This was done in order to return mining to ordinary computers, after bitcoin mining consolidated among large cryptocurrency miners with expensive computing equipment.
Unlike Bitcoin and Bitcoin Cash, Bitcoin Gold uses the Equihash algorithm based on the Proof-of-work (POW) principle. It allows miners to mine coins efficiently using conventional graphics processors (GPUs) instead of using more expensive specialized purpose integrated circuits (ASICs). Bitcoin Gold provides miners who cannot afford expensive equipment to return to mining cryptocurrencies. The algorithm aims to solve the scaling problems that arise when using the original bitcoin blockchain.
Like the original Bitcoin (BTC), Bitcoin Gold (BTG) has a fixed issue of 21 million tokens. At the moment, there are 17.5 million tokens in circulation, with a total capitalization of $1.2 billion, which makes BTG the 91st largest cryptocurrency.
Over time, the developers have somewhat shifted the emphasis in the development of the Bitcoin Gold blockchain:
"Initially, Bitcoin Gold was conceived as a cryptocurrency based on the bitcoin model, but more decentralized for miners. Now we are focused on making Bitcoin Gold a more reliable and convenient cryptocurrency for everyone. This change in goals is reflected in our development plans."
The roadmap for this year focuses on 4 areas: interoperability with other blockchains; transition from centralized management to a decentralized autonomous organization (DAO) model; infrastructure upgrade; ensuring reliable and efficient operation of the Lighting network on the blockchain. Lighting Network is a technology that works on the blockchain and provides instant transactions, thereby expanding the capabilities of the blockchain. In the end, this allows all participants to make bitcoin transfers between their wallets without any fees.
As another step in the development of interoperability, in May Bitcoin Gold announced a partnership with Phala Network to create cheap, trustless cross-chain bridges in Polkadot for BTG and other bitcoin-based blockchains. Blockchains are developed according to a no-confidence scheme. This means that they function on the basis of consensus, and not based on trust in any management organization or a third party.
These bridges, using Phala's confidential computing technology, will first link BTG to the Polkadot ecosystem. However, they are arranged in such a way that they can work with any tokens operating on bitcoin technology blockchains – such as litecoin (LTC), Bitcoin Cash (BCH), dogecoin (DOGE) and Bitcoin SV (BSV).
The statement says:"All this will provide an opportunity to access the liquidity of the 36 billion coin market in the Polkadot system for use in smart contracts, decentralized finance (DeFi), decentralized exchanges (DEX) and other areas." Han Yin, co-founder and head of the scientific department of Phala Network, is also the lead developer and co-founder of Bitcoin Gold. He was joined by five other founders - Martin Kuzandzhiev, Franco Niebles, Alejandro Regoho, Robert Kune and Jack Liao. Although, according to the project's website, the last three are currently inactive.
BTG course: in search of direction
The Bitcoin Gold price chart demonstrates that the coin, like many other cryptocurrencies, has been growing since July 20. The BTG price rose from a daily low of July 20 at $34.37 to a high of $79.09 on August 21.
On August 27, the coin rolled back to $61.78, and then two days later jumped to a three-month high of $94.49. After that, the rate consistently declined to $61.85 as of September 8. Since then, the price of BTG above $ 70 has not been held.
In the period from October 18 to 23, bitcoin increased by 1.55%, and Bitcoin Gold decreased by 2.55%. Even at the peak value of $168.19 on May 6, BTG was trading significantly below the historical maximum of $539.72, marked almost immediately after the launch of the coin in October 2017.
What awaits the bitcoin alternative in the future? Will the price rebound? Or is it worth playing down?
Bitcoin Gold price forecast: Will the exchange rate update its highs?
The Wallet Investor service predicts growth above the $73 mark in October, and then a pullback to the $64 level in November. In December, a steady increase to $102.80 is expected by the end of the year.
In the long term, Wallet Investor expects growth to $169.82 by the end of 2022. Then more than doubling by the end of 2025 - to $368.96. The forecast for the end of the five-year plan is $398.04.
BTG price forecast for the year
The forecast for BTG from Digital Coin is not so "bullish". In 2022, it is expected to grow to an average of $116.09, compared with $99.64 in 2021. By 2025, the average annual value will be $202.74. The average annual value in 2028 is projected at $306.78 with a maximum at $327.06.
BTG price forecast for 2021-2028
Price Prediction is very optimistic about the long-term prospects of the coin, predicting an average value of $367.33 by 2025 and a further doubling every 2 years with a price of $2310.41 by 2030.
It is important to keep in mind that the crypto market is still extremely volatile. It is difficult to predict how the coin will behave in the next couple of hours, not to mention long-term expectations. In this regard, analysts and online forecast services often make mistakes in their predictions.
We strongly recommend conducting your own research, assessing the state of the markets, studying the latest news, trends, expert assessments, conducting technical and fundamental analysis before making investment decisions. And never invest more than you can afford to lose.
FAQs
Can Bitcoin Gold be considered a good investment?
Cryptocurrencies are highly volatile investments, which makes investing in them more risky than in any other asset. Whether BTG is suitable for your investment portfolio depends on your level of risk acceptance and personal goals. You should do your own research and assess the risk that you are going to take on yourself before investing.
Will the price of Bitcoin Gold go up?
The BTG price level depends on the acceptance of this cryptocurrency, as well as on the sentiment in the crypto market as a whole. And even though the forecasts give an optimistic picture regarding the Bitcoin Gold exchange rate, it is important to remember that expectations may be erroneous.
Will Bitcoin Gold reach 1000?
The Price Prediction service assumes that BTG will pass the $2000 mark by 2030
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