Money Flows into Bitcoin Ahead of Split

Bitcoin is headed for another split or fork. On 1 August, bitcoin went through a hard fork which resulted in a new crypto token called bitcoin cash or bcash.

The two coins, while similar, have some distinct differences that are governing their future direction. Now bitcoin, the original, is heading for another fork. This time the spin-off token will be bitcoin gold.

When the fork happens, anyone holding their private bitcoin keys will receive the same amount of bitcoin gold — for free.

Free money certainly has a lot of appeal. Just look at bcash today, it’s worth US$330. That’s a significant amount of money, especially for free. Naturally, that kind of allure has seen crypto traders flock to bitcoin hoping that the Bitcoin Gold fork could bring similar returns.

The Signs aren’t Particularly Promising

We’re literally days out from the fork and bitcoin gold only just got its official website up and running. Though it’s rather light on information as to what bitcoin gold actually offers.

If you’re looking for clarity, you certainly won’t find it on their site. The Merkle comments:

On the new website, there is mention of how users can obtain Bitcoin Gold. Unsurprisingly, the information doesn’t help anyone by any means. We know there will be a rate of 1:1 relative to BTC held in user wallets at the time of the fork. However, there is no information as to how users can actually obtain or claim their balances in this regard.

The alarm bells are well and truly ringing at this point. It gets better though.

A Better Bitcoin?

The team behind bitcoin gold are relatively unknown. Even within the bitcoin community. Their only claim is that they believe they can make a better bitcoin. Though they have little to show how they are going to go about that.

The Merkle sums it up rather nicely, I think:

In the end, it remains to be seen how things will play out for Bitcoin Gold. No one has high hopes for this project right now, which is only understandable. Based on the current information, there will be a major BTG premine and no way to effectively distribute the coins. There isn’t even an official Bitcoin Gold wallet, for crying out loud. This project does not instill any confidence whatsoever; that much is rather evident.

If you’re holding any bitcoin you’ll get your free bitcoin gold, just don’t expect to get a whole lot of value out of it. That is even if you can get access to it.

Regards,

Ryan Clarkson-Ledward,
Junior Analyst, Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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