Blockchain Investor Analysis

Bitcoin Gold

BTG
Current Price $10.84 (+0.69%)
Bitcoin Gold (BTG) is a fork of Bitcoin that was created to decentralize Bitcoin mining by enabling anyone to mine the digital currency at home using GPUs.

Our Rating:

Market

Problem that it solves

Bitcoin Gold was created in the hopes of 'making Bitcoin decentralized again.' Skeptics pointed to Bitcoin's mining process as being favorable towards major mining operations, resulting in a hard fork to Bitcoin Gold in 2017. Bitcoin Gold adopted a different mining algorithm called 'Equihash' to enable anyone to mine 'Bitcoin.'

Customers

Bitcoin Gold is primarily targeted at digital currency miners. The developers at Bitcoin Gold believe that the new mining protocol will incentivize individuals and lower tier mining operations to make the switch.

Value creation

The value for Bitcoin Gold rests within its new mining algorithm, which offers users a more decentralized mining process. Users who hold Bitcoin Gold don't have to worry about large-scale mining operations that threaten to centralize the digital currency.

Market structure

The market for Bitcoin Gold is emerging as more users of Bitcoin recognize the centralization occurring due to major mining operations. Having said that, Bitcoin continues to show dominance and has yet to lose real market share due to a fork.

Market size

The market for Bitcoin Gold is primarily composed of at-home miners who are looking to mine a potentially profitable, mineable Bitcoin alternative that does not require a large-scale ASICs miners-based setup.

Regulatory risks

Bitcoin Gold's decentralized and open source model keeps it out of the hands of regulators for the most part, but it will still face the same level of review as Bitcoin due to its name likeness.

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Competitive Advantage

Technology/blockchain platform

Bitcoin Gold represents a hard fork of the Bitcoin blockchain, which remains the most studied and recognized blockchain in the world.

Lead time advantage

As Bitcoin Gold forked off Bitcoin in 2017, it has zero lead time advantage as a digital currency. However, it is one of the more recognized GPU-mineable coins in the market.

Contacts and networks

Bitcoin Gold has the brand recognition to move up the blockchain industry ladder, but its team of developers has been harshly criticized in the past for a number of issues.

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Management Team

Entrepreneurial Team

Although the Bitcoin Gold team consists of 20+ 'experts of their field', it has faced incredible backlash over the years. The Bitcoin Gold team operated the new network privately, which allowed them to mine a considerable amount of BTG without competition, leaving fewer BTG for everyone else.

Industry/technical experience

The Bitcoin Gold team has experience continuous employee turnover through the years, losing top executives left and right. The current team of developers run the network from different locations across the world. Hang Yin, the lead developer for Bitcoin Gold, spent a few years as a software engineer at Google before co-founding BTG.

Integrity

The Bitcoin Gold team has been under scrutiny since the origins of this project. It was discovered that the Bitcoin Gold team started the network privately in order to mine coins for themselves prior to the rest of the world.

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Token Mechanics

Token required

The fork of Bitcoin Gold and subsequent Equihash mining algorithm would be impossible without the token itself. Interested parties can mine Bitcoin Gold using GPU rather than having to purchase and set up expensive machinery.

Value added

Bitcoin Gold adds value for miners more than anyone else. It decentralizes the mining process so that corporate miners have less power and influence in comparison to Bitcoin.

Decentralized

Bitcoin Gold claims that its new mining algorithm makes it more decentralized than Bitcoin. However, the 51% attacks the network has suffered show that it is not as decentralized as marketed.

Token supply

Bitcoin Gold has a supply limit of 21 million tokens.

Public exchange

Interested parties can find Bitcoin Gold on a number of exchanges including Binance, Bitfinex, BitStar, and more.

MVP

The Bitcoin Gold fork has been operational since October 2017.

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User Adoption

Technical difficulty

Bitcoin Gold separates itself from Bitcoin via a new mining algorithm that enables nearly anyone to mine the digital currency. In that sense, it's not as technically difficult as its predecessor.

Halo Effect

Bitcoin Gold started its existence with some halo effect due to its name recognition. However, its reputation began to falter due to its founders' pre-mining and when 51% hashing attacks ravaged its network.

Buzz

Following its launch in 2017, some former Bitcoin miners transitioned to Bitcoin Gold. Bitcoin Gold's key point of difference is their mining algorithm, but beyond the mining aspect, it has not generated much buzz.

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Overall Score

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Blockchain Investor Analysis

Bitcoin Gold accomplished its task of democratizing the mining process, but it failed in gaining the trust of the blockchain community. The team promised a new mining protocol that would yield a more decentralized network, but the team's dishonesty during the launch of the project and the repeated 51% attacks have damaged BTG's reputation.

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