Bitcoin Gold - Back From The Dead or Just Another Pump & Dump?

• Bitcoin Gold (BTG) surpasses $27.83 million in overall trading volume
• Bitcoin Gold coin price rises 9% as the real Bitcoin (BTC) price plummets
• BTG price holds steady at $85 and seems to be attracting renewed investor attention, as the cryptocurrency market corrects

Was the hard fork of Bitcoin Gold (BTG) in November 2017, the worst altcoin launch in history? - Quite possibly.

On the same day that Bitcoin Gold went live, Bitcoin Cash started stealing mining power from Bitcoin. Cryptocurrency news for the next 7-days subsequently centered on the then all out Bitcoin vs Bitcoin Cash price war. A week later, the Bitcoin Gold website was then found to be stealing Bitcoin private wallet keys and fraudulently sweeping Bitcoin wallet balances in the process.

Why are Investors Taking Notice of 2017’s Bitcoin Gold Fork?

Given the controversy surrounding November 2017's Bitcoin Gold fork, it’s hard to understand why Bitcoin Gold is suddenly starting to rise in value.

• Bitcoin Gold has a very limited payment ecosystem
• Bitcoin Gold has only managed to build strategic relationships with new to market partners like PayBear
• BTG has little reputability among long-term cryptocurrency users & enthusiasts

As it happens, however, the resurgence in interest in Bitcoin Gold might be a knock on effect of the Chicago Board Options Exchange and its 2017 rollout of Bitcoin futures trading.

How the Chicago Board Options Exchange has Shaken Up the Cryptocurrency Market

In late 2017, the Chicago Board Options Exchange made Bitcoin futures trading possible for non-traditional cryptocurrency investors. By virtue of futures trading, Wall Street and other institutional investors can now profit from Bitcoin price rises and pull-backs, without actually investing directly in cryptocurrency.

How Futures Trading is Adversely Impacting Cryptocurrency Prices

When Bitcoin futures trading was first announced by the Chicago Board Options Exchange, the Bitcoin price surged. This was due to the fact that investors expected futures trading to help legitimize cryptocurrency.

Sadly, what cryptocurrency enthusiasts failed to take into account, was the fact that futures traders would stand to profit more from Bitcoin falling rather than rising in value. Much more importantly, launching futures trading on Wall Street effectively allowed individuals and institutions to manipulate the Bitcoin price, by virtue of their influence over things like financial regulatory policy.

• Bitcoin capital gains tax changes have since pushed down prices
• Government & financial institution sell-offs of Bitcoin hoards left over from Mt Gox confiscations are now driving down the Bitcoin price
• Bank suspensions of people being able to use credit cards to buy Bitcoin are driving down cryptocurrency token valuations

What has Futures Trading got to do with Bitcoin Gold?

Needless to say, 2018 has seen the cryptocurrency market and Bitcoin price become subject to unprecedented outside manipulation. As for what this means for coins like Bitcoin Gold, the issue at hand is simple.

As soon as top market cap cryptocurrencies like Bitcoin start falling in value, investors look for alternative places to store wealth. Bitcoin Gold seems, therefore, to garnering interest as a possible Bitcoin alternative, due to the fact that BTG prices have remained largely stable over 2018’s first quarter.

Is Bitcoin Gold Worthy of Investment?

Despite controversy surrounding the initial launch of Bitcoin Gold, BTG has since made progress legitimizing itself as a digital currency. Bitcoin Gold benefits from strong exchange support and is garnering increasing attention on Asian retail markets. What investors need to keep in mind, however, is the fact that the BTG blockchain currently sees an average of just 60 transactions in any 24-hour period. This means that Bitcoin Gold is being used by very few individuals and that so far, Bitcoin Gold’s ability to facilitate large volumes of transactions remains untested.