It is a dreary Monday morning here and all the markets are red. Very red. But why? Bitcoin Gold! Well in case you have not been reading the daily Bitcoin drama there is yet another Bitcoin hard fork coming up, this time it is being called “Bitcoin Gold”.
Bitcoin Gold Hardfork
In case you do not know what a hard fork is, according to the Bitcoin wiki: “A hardfork is a change to the bitcoin protocol that makes previously invalid blocks/transactions valid, and therefore requires all users to upgrade.” Source. In simpler terms it means that there will be two Bitcoin networks out there operating but they are completely incompatible with each other. (Actually there are a lot more than two but we will not go into that here.)
So why are alts going down and Bitcoin rising? Most people see this as another way to “double their money” or “get free money”. How? Due to the nature of the hardfork, when it happens the current blockchain will essentially be “copied” and taken in another direction, meaning there are now two chains that were identical up until that point, and now are not. If you have 10 Bitcoin at the time of fork, you will now have 10 Bitcoin and 10 Bitcoin Gold! This is why the market is in the current state; many people are dumping their alts in favor of holding BTC for the upcoming split. What happens after the split? If the BitcoinCash split is any indication, alts will pump massively as everyone reevaluates the markets and begin buying into them again.
So what to do?
So should you follow suit? I say no. Bitcoin Gold appears to be shady at best, a growing scam at the worst. I am still collecting information about it and will have an update on it soon. Until then my advice is to just sit tight and wait out the storm. Or, if you have spare funds, buy the dips!