Is Bitcoin Gold a Good Investment
In This Article
Is Bitcoin Gold as good as Bitcoin?
Bitcoin Gold showed a promising future initially, with a price of $500 at inception. However, the price seems to be fluctuating. You might be amongst those who wish to know, “is Bitcoin Gold a good investment.”
Bitcoin Gold (BTG) was initiated in 2018 and was conceived with the idea that it could make up for the limitation of Bitcoin. Bitcoin Gold is an offshoot or a hard fork of Bitcoin. Bitcoin Gold is a Bitcoin hard fork, which means it was established by spinning off certain current blocks of the Bitcoin blockchain for autonomous governance. Thus BTG has terminated all the links with Bitcoin, and the number of developers has grown to over 20 strong at present.
At the inception of Bitcoin Gold, it was valued at $500 in 2017; however, in the current scenario, the valuation is roughly $18. Still, buying low and selling high is the mantra to make a profit. Thus you can consider
Purchase and sale of Bitcoin Gold (BTG)
As Bitcoin can be traded over a cryptocurrency platform that supports it, similarly, Bitcoin can be traded for Bitcoin Gold on a Bitcoin exchange.
Buying Bitcoin Gold is quite simple:
- Find a trustworthy bitcoin exchange.
- Sign up for an account.
- If necessary, provide identification and payment information.
- Comply with KYC regulations.
- Decide how much Bitcoin Gold you want to buy, check the exchange rates, and buy it.
- If you prefer hardware wallets to digital wallets, you have that choice as well.
Buying Bitcoin Gold is easy and so is selling it:
- Check that your Bitcoin Gold currency is already in your wallet.
- Enter your sell amount on any secure cryptocurrency platform that supports BTG.
- Sell your Bitcoin Gold if the rates are attractive.
- If you’re selling a digital asset for another, ensure the receiving address is safe.
Bitcoin Gold price history and technical analysis
As per the historical data, the initial value of Bitcoin Gold at the time of inception was $500, and then it hit its all-time high of $539.72 in October 2017. After that, however, the value dropped below $200 quickly, only to hit another all-time high of $509 in November 2017.
The rest of 2017 saw Bitcoin Gold try to backtrack its steps to $500. The price pullback persisted in the first few days of 2018, but the market gradually lost steam at around $158 towards the end of January.
The repeated malware attacks on the coin’s ecosystem resulted in significant price dips that were experienced between 2018 and 2020.
Even though the price hovered roughly around $8 at the start of 2021 after showing favorable factors benefiting Bitcoin Gold in February, it showed a massive recovery surging to $168.19 in May.
The price of Bitcoin Gold is trading above the 50-day and below the 100-day Moving Averages on the 4-hour chart. In addition, the price is moving upwards, attempting to break through the upper Bollinger Band. The price of Bitcoin gold is increasing in tandem with the price of Bitcoin.
At the start of the year 2022, the price of BTG was roughly around $41, but it continued its bearish trend till the end of February 2022, roughly $29, only to surge to around $44 near March ending. However, the price of BTG has dropped to $18 at the time of writing this article.
Bitcoin Gold is continuing its bearish run. Now would be the ideal time to make the most of the opportunity. It should be noted that even when Bitcoin came into existence in 2009, it was trending merely in cents for quite some time. Fast forward to 2022, it is trending roughly around $30,000, a single coin worth $30,000 is quite a feat in itself.
Now is an excellent time to buy Bitcoin Gold good investment; as with any cryptocurrency you might have seen, such a run, bearish or bullish, does not last long.
Why Do Investors Buy Bitcoin Gold?
When the Federal Reserve and other central banks worldwide intervene to bail out struggling economies, both gold and bitcoin tend to draw investors. The general assumption to support this theory can be summed up in:
When governments print large amounts of money and keep interest rates near zero, their fiat currencies lose value. Investors respond by investing money into non-government currencies.
Furthermore, when interest rates are so low, mainly when inflation-adjusted interest rates are negative, investors are less interested in yield-generating assets like bonds and dividend-paying equities.
This could lead to a bandwagon effect, in which each new investor drives up the price of a safe-haven asset while paying a higher price. The risk is that a fresh event or development will derail the upward trend, causing investors to flee. You then have the dubious distinction between buying high and selling low.
Differences Between Gold and Bitcoin
People’s perception of money has changed during the course of history, from gold to Bitcoin. For thousands of years, gold was the preferred currency and still retains its value from investors’ psychological and historical perceptions. The thought is that, like gold, Bitcoin will hopefully replace government minted currencies that people use to carry out payments.
From an investment point of view, gold is still considered a mature asset. Thus it can be easily owned. However, through your brokerage account, you can buy Standard & Poor Depository Receipts or SPDR Gold Shares at a cost ratio of 0.40%. As a result, owning digital gold is a more convenient option than owning actual gold with substantial storage costs.
The easiest way to invest in Bitcoin is to simply open up an account in a reputed cryptocurrency-specific exchange and exchange digital currency with dollars. You will then need a cryptocurrency wallet to hold your digital currencies.
Investing in gold reaffirms your faith in the current international financial system, whereas bitcoin is a gamble on a more radical alternative on the horizon.
Cryptocurrency has the potential to disrupt a significant portion of the financial services industry. Many traditional business lines, such as trading, lending, and insurance, have now been duplicated by decentralized finance apps.
Should You Invest in Gold or Bitcoin?
Bitcoin BTC USD has the potential to give you significant price gains. Bitcoin is a limited “monetary good” and outdoes other cryptos, gold, and even fiat money like the dollar. Moreover, bitcoin is expected to go even bigger in the next five to ten years.
Bitcoin is a store of value asset in a steadily digitalizing world. Bitcoin’s advantages are unmatched by any other blockchain network or token. It is considered the most secure, decentralized, and digital sound money.
Bitcoin is considered to have the edge over gold by some. Both have limits on the amount that can be mined. Bitcoin is easier to transport and store and also immune to counterfeiting due to the security of its underlying blockchain network. The supply inflation rate of bitcoin, 1.8%, is equal to gold’s annualized increase in supply.
Macroeconomic events also favor bitcoin due to the rising debt in the financial system, negative real interest rates, and the tendency of traditional currencies to lose value.
What Technology Supports Bitcoin Gold and How Does It Work?
The Equihash proof of work algorithm, which relates block production to the memory available for storage, drives the Bitcoin Gold ecosystem. However, because custom modifications were necessary at regular periods to keep up with algorithm improvements, ASIC machines were disadvantaged from the start of Bitcoin Gold.
Simply put, the machine may not have produced the required return on investment before it is considered obsolete and no longer fit for function. The blockchain and its reward structure are expected to remain democratic and decentralized, with smallholder hardware miners expected to be the largest winners.
Bitcoin is a community project as the blockchains are open-source and technology-driven, all the while providing room for transparency and decentralization. When compared to other cryptocurrencies, Bitcoin Gold is similar to Monero regarding anonymity while differing from Ethereum and Bitcoin, both of which are known for publishing transaction information through their respective explorers. This is where Bitcoin Gold is known to differ, as it does not reveal the actual wallet address.
What Are the Benefits of Bitcoin Gold?
Even though Bitcoin Gold is quite similar to Bitcoin, there are still some distinguishing features, and these distinctive features are the benefits of Bitcoin Gold.
One Bitcoin Gold is equivalent to one Bitcoin Gold. Bitcoin Gold is identical, convertible, and replaceable since it is a fungible cryptocurrency.
Since it runs on consensus algorithms, it is a decentralized and community-driven cryptocurrency.
Due to its enhanced design, Bitcoin Gold carries 27 transactions per second compared to roughly five transactions per second for Bitcoin.
Similar to Monero, Bitcoin Gold implements full transaction anonymity; thus, the wallet address of the sender and receiver on the network remains anonymous.
Bitcoin Gold Mining
Bitcoin Gold uses the Equihash Proof of Work algorithm, and it is designed to correlate the output capacity with the storage or memory capacity. PoW has typically placed stress on miners to protect the network, requiring miners to use their processing capacity to come up with a solution to the requisite mathematical complexity. To restrict a miner with an advanced computer processor from taking undue advantage, Equihash employs RAM size as a starting point. Thus even a miner with modest mining gear can participate and get an equal and fair share of mining opportunities.
While a few ASICs with custom-RAM have appeared, the use of updates makes it irrational to use them in BTG mining. This is due to economic considerations. If an ASIC is sold for $5,000 and an update invalidates the custom memory before the owner can generate that much, the ASIC is considered obsolete and will require a refit. In addition, more money spent to align the ASIC with new standards will make such machines too expensive to adapt.
Thus Bitcoin Gold seems to have the answer to restrict the exploitation by the use of industrial block miners who pose a threat to the ecosystem of the cryptocurrency community, giving every miner an equal opportunity to mine.
Is Bitcoin Gold Worth the Investment?
People invest so that they can make their money work for them. Each of us has a financial aspiration and goals that need to be satisfied. Today as we slowly recover from the pandemic situation, many of us have already lost while some of us are on the verge of losing. We have been heavily struck by the pandemic situation.
We now face inflation due to the disruption of the entire market ecosystem, and as we try to recover from it, there is war in Eastern Europe which has made our lives all the more difficult.
This is all the more reason for us not to just rely on the stock market as the market still remains bearish. Cryptocurrency has somehow survived these onslaughts making it viable to survive in these financial difficulties.
Even though Bitcoin Gold is an offshoot of Bitcoin, it shares some of its qualities, while the rest are totally different from Bitcoin. Many are skeptical as the price of Bitcoin Gold is trending roughly around $18. Instead of being pessimistic, one should go for it. One must never forget that even Bitcoin trended in cents before it too reached $68,000, even though it is trending now roughly at $30,000.
People would still like to invest in Bitcoin even if it might be out of reach. Bitcoin Gold started at $500 at its inception, and now it is around $18. We should not forget that the cryptocurrency market is very volatile. One day, even the Bitcoin Gold might reach as high as Bitcoin or even more but not in the immediate future. For the time being, you can consider Bitcoin Gold a good investment.
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Frequently Asked Questions
Some experts predict that the price of Bitcoin Gold will soar high, while others think otherwise. The coin has witnessed many cyber attacks, and security issues are nevertheless a source of concern. There would be several factors that might affect the future performance of Bitcoin Gold, including sentiments and anticipated regulatory changes. Still, Bitcoin Gold is a cryptocurrency and what we can understand is that its inherent volatility can make a profit or a loss.
Cryptocurrency has inherent volatility. Any trend does not continue for an extended period. There are spells of Bullish and bearish trends, which change without prior notice. You can make a lot of money if you research and understand the market sentiments. Put in as much money as you can afford to lose.
Investment in any market depends upon the one who is willing to invest. There are styles such as aggressive trading as opposed to cautious trading. Thus it is a personal choice. The investment also has to be aligned with your goals and aspirations.
Nonetheless, you should research yourself and ask for advice from people who have experience in trading. Instead of relying on gossip on social media platforms, try getting genuine news from credible sources.
At its inception, Bitcoin Gold was priced at $500 back in 2017. Today at the time of writing, its value is trending around $18. Even though after hitting a low of $200 in a short span, it did recover to $509.
Bitcoin Gold is relatively new in the market; even though it had a grand entry, it could not maintain it for a long time due to several factors. As an investor, if you are gripped with fear of missing out syndrome, the one which most investors regret missing the Bitcoin bandwagon, they could take the risk and invest in Bitcoin Gold as it is within everyone’s grasp.
Bitcoin Gold, from a long-term perspective, seems to be a profitable investment. Although price fluctuations are expected, we can anticipate Bitcoin Gold to trend at an average price of roughly $54 at the close of 2022.
Bitcoin Gold came into being recently, while Bitcoin has been in the market for more than a decade. The popularity and the acceptance of Bitcoin are enormous and no other cryptocurrency has outmatched it in terms of market capitalization. Even though a few recent entries like Ethereum are ranked second to Bitcoin, there is a vast difference between their prices. While Ethereum is trending at around $2,000, Bitcoin is trending at roughly $30,000 at the time of writing this article. However, as per experts, Bitcoin Gold will be trending between $1,500 and $2,000 in the next four to five years.
So the answer to the question is ‘No.’ It will take a lot of years to reach the price at which Bitcoin is trending.
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