Bitcoin Gold is a scam (?)steemCreated with Sketch.

in bitcoin •  2 years ago  (edited)

 

A few days ago, I have written a short analysis (HERE) on how to deal with the upcoming fork of BTC on 25th Oct. However, rumors said that Bitcoin Gold in fact is a "scam". The reddit discussion link about this  is put at the end of this post and I will just quote directly from the author:


 Update 2: *Premined: https://github.com/BTCGPU/BTCGPU/pull/2
Unfinished pow implementation: https://github.com/BTCGPU/BTCGPU/pull/15
Replay protection not implemented (You might lose your BTC if you try to transfer your and or sell your airdropped BTG): https://github.com/BTCGPU/BTCGPU/issues/18
No change of difficulty algorithm implemented (they will compete with other GPU-mined coin for hashpower)
No commits merged to main public repo in last 21 days
Without the difficulty fix alone, this coin will crater rapidly.
Assuming it survives that, without replay protection, big exchanges won't list it, and wallets won't support it. The code is unfinished and in flux that no-one can seriously review it yet, and there's no commit for a testnet definition yet. (thanks to /u/StrawmanGatlingGun)Update 1: In their Website-Snapshot from the github (https://github.com/BTCGPU/website) they stated that the fork snapshot already processed: "Bitcoin Gold (BTG) is a new proof-of-work cryptocurrency that will be hard forked from the Bitcoin blockchain on October 1 at block height 487427", which actually ended up being September 28th (https://blockchain.info/block-height/487427) partial info thanks to /u/rhuxx for the find.As some of you may know, Bitcoingold is attempting to fork Bitcoin at the 25th of October. However in the past they decided they'll fork during the Bitcoincash date, both of which have ended up confusing me thus I've decided to do more research on the matter.As I dug in deeper Bitcoingold started falling apart in front of my eyes losing all my trust in it. Here is what I've found.First I read about this to get a better idea behind it: https://medium.com/@EthereumRussian/is-another-hardfork-going-to-kill-bitcoin-bitcoin-gold-e49b24ad8a9The article mentioned there's been an ICO page, intrigued I decided to do a quick google search and found this 29 August bitcointalk thread that has more information regarding it: https://bitcointalk.org/index.php?topic=2046790.0Along with the original Bitcoingold developer thread: https://bitcointalk.org/index.php?topic=2133536.0It seems that they have possibly ran an ICO (Unsuccessfully most likely) but most certainly had premined the coin, thus I went to their website which at the time (9th of October) only ran a splash screen: http://btcgpu.org/ in an attempt to confirm my doubts.This didn't lead me far, I needed to confirm those claims by myself, thus I went to the wayback machine (a wayback machine takes snapshots of websites so you can tell what changed in a website over time) and picked the August 31 date of the bitcoingold website. https://web.archive.org/web/20170831032225/http://btcgpu.org/This confirmed the rumors, the website owners/original developers intended to run an ICO (which may or may not been successful) and also premined 16000 Blocks, worth at least 200,000 Bitcoin gold. The ICO price was supposedly 1 BTC = 10 BTG.Since they are holding that information away from us and hiding it, this makes me believe that, bitcoingold is infact a scam and an attempt to milk the Crypto community out of their money, please don't fall into this scam and don't buy bitcoingold, dump it and let others know you can even do your own research with the Wayback machine I linked above or any time machine.Regards, A fellow crypto investortl;dr BTG (Bitcoin gold is pre-mined 200,000+ BTG, and previously offered as an ICO, now they are trying to hide both of that information from us and telling people to dump their alts to get free "Bitcoin gold". the fork dates do not match, they specified different dates 3 times, once in their github page (1th october, and the block ended up being mined at 28th september) and a third time as 25th of october. all this combined information makes this me believe with no doubt that this is a scam in the making, and you should all dump your BTG as soon as you get it and never, ever buy BTG. also there is no replay protection, incomplete pow implementation, and no difficulity adjustment just the replay protection alone means you can lose your BTC by trying to sell/transfer your BTG). 

Honestly, I would utilize my strategy on getting more fiat and wait for the "dip". But if BTG is a scam, then our "flash-sale" on alts might end sooner than expect since more people will notice that investing in alts now is a better deal than going all in for BTC. 

So what do you think?

Source: (https://www.reddit.com/r/CryptoCurrency/comments/757jf4/here_is_why_bitcoingold_is_shady_and_a_scam_you/)

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Indeed when the market is more mature and investors are getting more rational, these kinds of scams are easily detected and we all should be more cautious of the so-called free money. Thank you for the informative post though.

Your analysis is always very interesting and informative :) Keep on your great work ^_^

Thanks but this is not my analysis though. Just re-post from a reddit post. I heard that the BTG is going to issue a statement regarding this claim soon today!

i see :) anyway, thanks a lot for sharing this! :)

Nice post ! thanks for your informations. upvoted !

@bluephoenix So much information thanks for sharing.