Bitcoin Gold has been seeing a steady decline in price that does not seem to be following the overall bear market. After hitting the scene through a hard fork shortly after the successful launch of Bitcoin Cash, Bitcoin Gold has steadily dropped and has been hovering around the $30 range for more than a month with no signs of recovery.
Charting the Decline
When Bitcoin Gold first hit the open market in late October 2017, it held a commendable price of $479. This didn’t last long, however, as prices quickly plummeted to the mid $100s. After a pair of fits and spurts, the currency quickly began its extended and currently unending decline.
While the currency was able to hold some of its US dollar value in December thanks to the hyper bullish bitcoin price of that time, the actual BTC to BTG price had already declined significantly. It moved from a previous high of 0.0452 just 0.026 BTC, but with both holding a similar US dollar value.
By January, the currency had lost 25% of its USD value and 40% of its BTC value, and has been on a decline ever since. The currency hit the $30 mark in mid June and as we enter mid-July, is still in the same range for both bitcoin and dollar rates.
Struggling to Find a Purpose
While other major currency forks or alternatives like Bitcoin Cash and Ethereum Classic have done fairly well in capturing an audience and niche, Bitcoin Gold has so far failed to do either.
The original explanation for why Bitcoin Gold was created was a means to decentralize mining and put it back into the hands of GPU miners. So far, this has proven to be more of an issue than an asset, as Bitcoin Gold suffered a 51% attack not long ago. Conversely, Bitcoin Cash, which retains the same mining algorithm, has not suffered any such attacks.
Read: How to Mine Bitcoin Gold
The Bright Side of Gold
Bitcoin Gold is not absolutely doomed, however, as a few positive developments have happened in recent months.
First, it has been included into some major cryptocurrency apps including Robinhood and Abra. While Robinhood has not begun cryptocurrency trading yet, the app has included Bitcoin Gold as a potential option since the beginning. This could prove to be a major on-ramp for potential investors to get in. Abra, a competitor with Coinbase, could also potentially offer more crypto-to-fiat pairs or an ability to buy and sell Bitcoin Gold for fiat currency directly.
On the technology side, Bitcoin Gold underwent a few upgrades including a shift to a 51% attack and ASIC resistant algorithm, as well as a significant mining difficulty adjustment that should make mining the currency more profitable and more in line with the amount of computing resources that are currently dedicated to the network. This was an issue starting back when Bitcoin Gold inherited the high difficulty from the original bitcoin network.
Bitcoin Gold Price Outlook
While we can’t predict the future, it’s difficult to say whether or not Bitcoin Gold stands a chance of recovering or seeing any growth. We would first need to see some real use cases develop, as well as more direct fiat-to-crypto on and off ramps for new investors to get involved.
Bitcoin Gold does offer comparatively low transaction fees. Unfortunately that is simply not enough justification to use an altcoin when there were already so many other alternatives that offer similar or lower fees.
Finally, the currency will need some degree of marketing or interest building in order to attract new investors. Bitcoin Cash has done an excellent job of this, hosting a number of events and meet ups across the world, and bringing in many independent shops and businesses to accept it as a form of payment.
Japan has so far been leading the way in terms of Bitcoin Cash adoption, and perhaps Bitcoin Gold could learn a few things from these kinds of guerrilla marketing efforts.