Alex von Stachelkopf
Yesterday, on October 25th, Bitcoin Gold became available for public trading. However, the first trading day turned out to be a nightmare for the founders. BTG crashed by roughly 70% over the first trading hours. According to Coinmarketcap, shortly before the launch, the exchange rate was 480 USD/BTG, but a few hours later it crashed all the way down to 157 USD/BTG.
The holders of Bitcoin could get free BTG during the process of hard-forking, the way it was during the launch of Bitcoin Cash in August. However, the new currency failed miserably, and this pushed more and more of those new investors to dump BTG for more stable assets.
It’s interesting to note that the BTG crash didn’t shock everyone. For some representatives of the international community, this was an expected thing. for example, Anatoly Radchenko, managing partner of United Traders, called Bitcoin Gold a fake with no future. He expects BTG to go down in value even more in the coming weeks.
Experts also say that before the official start (hard-forking), the founders of Bitcoin Gold mined themselves tons of BTG, which is something that clearly reduced investor interest in the new digital currency. According to Valery Smal, editor at Happy Coin Club, pre-mining is a sign of fraud, and that’s why savvy investors decided to quit.
Market Leader reports that Bitcoin Gold affected the conventional Bitcoin version as well. Yesterday, BTC got 2,6% cheaper. This confirmed the forecasts that Bitcoin would suspend the rally (a couple of days ago, BTC set another all-time high around $6200).
Alex von Stachelkopf
