BTG's Disastrous Launch Angers Miners
Bitcoin Gold (BTG) is quickly turning into somewhat of a farce. After forking from the Bitcoin blockchain back on October 25th with the express value proposition of decentralizing mining by allowing miners to mine with GPU, instead of requiring specialized ASIC mining hardware, developers delayed the launch citing various reasons over the past 2 weeks.
As BTG futures slumped as low as $218 in the interim, BTG developers had been operating their network privately premining 8000 blocks (100,000 BTG) for themselves which is a practice frowned upon by many critics.
After officially going live at long last on November 12, the team were still mining for themselves leaving a lot of miners to question the integrity of the BTG project. Some miners who had set up their devices in anticipation of commencing their mining were left rather peeved as they had no inkling premine was still be taking place after announcement that the network had gone live.
Occasional mishaps are unavoidable but the BTG narrative thus far has been a series of sob stories and excuses. For a relatively untried team of developers, a poor first impression can be a difficult stigma to overcome.
BTG team has also yet to dispel security concerns about their network. While decentralized mining operations by allowing regular folks to mine using their own GPU in a cost-effective manner may ostensibly seem an enticing marketing pitch, it would also leave the network vulnerable to attacks as the cost incurred in attacking the network would be drastically lower. Indeed, much of the delay in launch of the network has been attributed by BTG developers to malicious attacks on the network.
Cryptocurrency exchange platform, Bittrex, announced that while they would credit BTG to holders of BTC, they would not be inclined to open a BTG trading option, as “does not satisfy our criteria for safety for our users.” BTG’s code has also yet to under peer review.