A long-forgotten Bitcoin (BTC) hard fork has jumped nearly 200% in a week – simply because traders are buying the wrong altcoin.
Bitcoin Gold (BTG), a relic of the 2017 forking season, traded at $ 113 on April 9 – the highest price since February 2018 – after 30% daily gains as trading volumes exceeded 250 million of dollars.
Bitcoin Gold adds 173% weekly earnings
A curious contrast to an otherwise lackluster cryptocurrency market, Bitcoin Gold’s success doesn’t seem entirely genuine – but neither is it the fault of its holders or developers.
As UKTN reported on Tuesday, a new Bitcoin fund from Brazilian investment bank BTG Pactual moved closer to launch this week after partnering with the Winklevoss twins’ Gemini exchange for custody management.
Despite having nothing to do with Bitcoin Gold, Brazil’s largest investment bank shares the altcoin symbol – and the coincidence was good enough for hungry buyers.
Following the announcement of the new Gemini, Bitcoin Gold saw a surge in demand which, at the time of writing, shows no signs of slowing down. This, according to the reactions, showed that the cryptocurrency industry was still in its nascent phase.
“It’s so early that people are buying Bitcoin Gold BTG because there is a new fund called BTG Pactual,” podcast host Anita Posch warned Twitter users.
“No, it’s not a cheaper Bitcoin!”
In contrast, Bitcoin Gold announcing a true partnership at the end of March did next to nothing for price action.
Nothing to do with Bitcoin
Bitcoin Gold emerged as one of several Bitcoin hard forks in 2017, the year that also spawned Bitcoin Cash (BCH), Bitcoin Diamond (BCD), and others.
Unlike their parent, forks have only had limited success. As UKTN recently reported, despite the widespread rise in altcoins more broadly, BCH, for example, continues to lose value in terms of BTC.
Some of their supporters have taken an aggressive marketing stance that positions the fork like Bitcoin itself, a misleading move that has likely also contributed to demand.
UKTN reiterates that buying Bitcoin Gold, Bitcoin Cash, or any cryptocurrency with a ticker other than BTC means that you own an altcoin, not Bitcoin itself.