What happened to the Bitcoin Gold coin?
What happened to the Bitcoin Gold coin?
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What happened to the Bitcoin Gold coin?

By Marco Cavicchioli - 29 Mar 2020

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How is the Bitcoin Gold (BTG) coin, launched in October 2017 as a bitcoin version even more similar to gold, performing on the market? 

The situation is not optimistic. 

To tell the truth, many people from the beginning had strongly doubted that the project had any sense, if not to create a new cryptocurrency to be mined and sold on the market to collect some money in other currencies. 

When it was launched, a BTG was worth about 275 US dollars, or 0.048 BTC. 

Immediately after the launch, the value dropped to $127, which is less than half, and then dropped again to $109 at the end of October. 

However, soon after that, the huge speculative bubble on the crypto market began to burst, which ended up pumping BTG’s price to an all-time high. 

This was recorded on December 20th, 2017, three days after the historical high of bitcoin (BTC), when BTG peaked at $481, equivalent to 0.029 BTC at the time. 

The maximum peak in the value in bitcoin had been reached one month earlier, on November 12th, when a BTG was worth 0.077 BTC. 

After the bubble burst, the price of BTG literally collapsed, to the point that on February 6th, 2018 it had dropped to $74, a loss of more than 73% from the launch price. 

Note that, on February 6th, 2018, BTC was worth about $6,000, or more than it was on BTG’s launch date, so at the same time when BTG was losing 73% of its value, BTC’s value increased slightly. 

Since then things have been even worse for BTG, with a continuous decline that has never really stopped. By the end of December 2018, it had already dropped to $13 and then plunged to just over $5 at the end of December 2019

To date, a BTG is only worth $7.5, which is 97% less than it was at the time of launch, while BTC, for example, is worth even more than it was at the time of BTG’s launch. During the same period when Bitcoin Gold (BTG) lost 97% of its value, the value of Bitcoin (BTC) increased slightly. 

At this point in time, a BTG is worth just over BTC 0.001. 

In light of this data, it is possible to claim that Bitcoin Gold has in fact lost almost all its value since its launch, proving to be a totally unsuccessful project, precisely because it was born with the narrative of being a better store of value than BTC. 

To tell the truth, many people were expecting a similar outcome, both because any cryptocurrency that is proposed to the market as an alternative to BTC is probably based on false beliefs, or false narratives often exploited only to collect money on the market, and because the Bitcoin Gold project had nothing concrete to propose except a name that indicated the advantages of gold

There are many cryptocurrencies that are different from BTC, but complementary to it, and can make sense both technologically and financially, but those that are proposed out of nowhere as alternatives to the undisputed king of cryptocurrencies, whose market capitalization is about double of all the other cryptocurrencies in the world put together, have a very difficult, if not impossible life. 

If then, they are not even based on concrete advantages offered to investors, but only on hypotheses, opinions or simple narrative, these projects are doomed to fail. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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