Bitcoin has a number of forks having the word “bitcoin” in their names. Some believe that such naming is a trick to make people believe that they deal with a coin as cool as Bitcoin (or even an improved version of Bitcoin). It may seem that such names arrogate Bitcoin’s reputation despite the fact that these coins are in fact new different cryptocurrencies. This attitude can be justified by the fact that these altcoins have significant differences from the first cryptocurrency and have no such a flawless history of stable operation. Nevertheless, Bitcoin Cash, Bitcoin Gold, and Bitcoin SV have managed to preserve their significance on the market for some time.
In this article, we will analyze the trajectory of the Bitcoin Gold (BTG) price and will figure out how much will BTG cost in the future. First, we will highlight the main features of this asset and learn the history of Bitcoin Gold.
What Is Bitcoin Gold?
Bitcoin Gold is a Bitcoin hard fork. This fork took place on October 24, 2017, weeks before the entire cryptocurrency market capitalization reached its historical peak. The BTC holders have received the respective amount of BTG after the fork. At the start, the price of BTG was quite high (over $400) but then it quickly declined and was quite volatile for some time. In the so-called “crypto-winter” BTG lost most of its price and since then is struggling to regain its initial market value.
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However, the asset is still listed among top50, is listed on many huge exchanges, and cannot be written off. The coin is loved by miners as it was designed to be ASIC-resistant meaning that it can be mined with small mining farms. We should give more details about Bitcoin Gold in terms of mining.
The very concept of Bitcoin Gold was to make Bitcoin minable again. By that time mining Bitcoin without using special mining devices (ASICs) was nearly useless. The hashing power of any GPUs and CPUs even combined together at home was too small to effectively participate in mining. ASIC devices needed to mine BTC are costly themselves and consume much power that makes mining a serious business impossible without a significant investment in the beginning. The creators of BTG used a different hash function (Equihash instead of SHA-256) to make the coin ASIC-resistant so regular GPU owners could mine Bitcoin at home in the early Bitcoin era style.
Although the Bitcoin Gold developers have managed to create a mineable coin, they were not so successful in making it secure. The coin network has a track record of 51% attack resulted in thefts, and the website of the project was hacked right after the launch. These events were the reasons for criticism in the cryptocurrency community and harmed the reputation of this coin that was delisted from some exchanges. Is Bitcoin Gold doomed to collapse? First, we will see how the price was behaving in the past.
When the token appeared on the market its price was peaking at over $500. Two days later it already crumbled down to around $140. There were two reasons for that. First off, the website of Bitcoin Gold was hacked and this incident received a negative reaction in the community. Secondly, BTC holders received free BTG and started to sell it because they were not planning to store this coin. In the consequent weeks, the price was volatile varying from below $110 to above $500.
The real surge started on November 21 when the trading low was around $201 and the price began to go up. In the days of December, the price was waving between $250 and $300 and reached a maximum of $488 on December 20.
It was the time of huge optimism in the cryptocurrency market. Bitcoin and many other cryptocurrencies were growing with the abnormal speed in those days. The Bitcoin Gold price fast gain was just a part of the common trend and we all know what was the next trend — in January the cryptocurrency market has shrunk.
After reaching the peak on December 20, the price began to decline slowly. On December 28, the price dropped below $300. In the first half of January, BTG was very volatile with highs at $380 and lows at $207. On January 16 the price dropped below the $200 mark and continued to decrease. On February 5 it was already slightly above $8 but then the price has risen again only to start nosedive in early March. It was happening parallelly with the Bitcoin price downfall.
In April — May of 2018 BTG was cost $50 to over $60 per coin. In May the Bitcoin Gold network experienced a successful 51% attack that had lead to the theft of 388,000 BTG from the cryptocurrency exchanges. At the time this amount was worth around $18 million. No wonder that while the entire cryptocurrency market wasn’t too bullish, such an event caused the even worse downfall. On May 1 the price was above $70 but on July 1 it became slightly above $25.
For the rest of the year, the price was fluctuating from around $11 to over $30. Most of the time it was around $20. In January 2019 the asset was delisted by Bittrex due to the refusal of the Bitcoin Gold team to compensate losses caused by the security breach of the Bitcoin Gold network. As a result, by the end of the month, the price has dropped below $10 for the first time since the very launch of the coin.
For months, the price was oscillating below the $20 level however in May it managed to reach $20 again. Those days, BTC gained much value in a short time span. Once again it has led to the rise in the prices of other coins, including BTG. In late May, in June and July, BTG was above $20 but mostly below $30. By August, the value dropped below $20 — this time without any connection with the BTC price as it was still high at that time and wasn’t declining. By the middle of September 2019, BTG was traded around $10. The whole of October the price was quite stable — around $8. It was decreasing in November and dropped below $6 by the end of the month. The decline was continuing in December, however, in January 2020 (once again together with the whole cryptocurrency market) the price of BTG has increased. On January 7 the price was below $6 but on January 15 it peaked at $23.
2020 wasn’t that bright for BTG. Most of the time, the price was fluctuating between $8 and $10. However, things started to change when 2021st came. This year brought a new strong crypto rally and Bitcoin Gold became one of the main gainers of the first third of 2021. It took only four months for the Bitcoin Gold price to rise from $8 to $108 in 2021 meaning that it gained 1,250% since December 2020. In terms of market capitalization BTG moved from the 82nd position (December, 2020) to the 62nd position (April, 2021). As of April 8, the BTG price is $109, the market cap is $1,887,112,246.
Initially, the prediction made in this article was quite moderate. It was made before the 2021 crypto storm and was based on the previous market achievements of Bitcoin Gold. Our prediction on BTG turned out to be too conservative, so we had to make corrections. Below you will see the updated prediction based on the current data.
Bitcoin Gold has always been a crypto which price was following the major market trends. However, we hardly expected that in 2021 it will be growing much faster than most of the rivals. In March Bitcoin Gold announced the creation of the bridge between BTG and another project that became one of the market leaders in a course of the 2021 crypto rally — Polkadot. More than that, the company reports that the Bitcoin Gold network has successfully repelled a series of hacker attacks since January 2020. All these news will rather fuel the further growth of BTG. We see that the coin has gained much of its current value in recent days. In our opinion, with a probability of 67% BTG won’t fall below $100 by the end of 2021. At best, the price will reach up to $145. However, there is a chance (around 33%) that the correction will follow and the price will regress to a double-digit value by the end of the year. If the pessimistic scenario takes place, BTG might drop to $64 but not necessarily this low.
The implementation of Lightning Network which is scheduled for the near future will make BTG a handy payment means. The asset has examples of relative price stability in the past. In the world of the recovering economy these qualities can make BTG more popular than it is now. Yes, BTG doesn’t seem to have champion qualities but it can still balance on the wave of the entire cryptocurrency market and the rising role of cryptocurrencies in the world economy. If we continue the optimistic line from the previous passage, the price can gain up to $300 by the end of the year. It seems realistic, especially considering that the BTG price was higher than $300 in 2018. We are not expecting the price to gain hundreds of percent in the following years. Not BTG. As for conservative prediction, if by the end of 2021 the price is below $100, then by the end of 2023 it will definitely cross the $100 mark again. We believe that at worst, BTG price will reach $120.
It is hard to predict if the Bitcoin Gold team will add any notable features. The probable growth of the cryptocurrency market in the next several years may grant BTG a value of $300 to $660 by the end of 2025. We should realize that the real value of USD will be decreasing throughout the time. It will contribute to a faster growth of the price of cryptocurrency against USD.
The opinions and assessments expressed in the text are the views of the author of the article and may not represent the position of Cryptogeek. Do not forget that investing in cryptocurrencies and trading on the exchange is associated with risk. Before making decisions, be sure to do your own research on the market and the products you are interested in.