According to a recent study, the Bitcoin Gold market price is manipulated by a single whale that holds a significant portion of BTG in circulation. The Bitcoin Gold network recently suffered heavy losses from the 51% attack that caused two blockchain reorganizations. The BTG developers team introduced a new soft fork concept called “Cross-chain Notarial Protocol” (CCBN) to prevent any future 51% attacks.
Bitcoin Gold developers proposed Notary Protocol to prevent future 51% attacks
Recently, BTG has gained attention from the cryptocurrency community. During the last week of January, the Bitcoin Gold blockchain suffered a 51% attack and malicious miners could have spent twice as much as $ 72,000 BTG at the time. Like the previous attack, losing $ 18 million BTG, many speculators blame Nicehash hashrate rental service for these issues. After a 51% attack against BTG in January, software developer James Lovejoy note that miner overthrows the hashrate probably spent about $ 1,200 to hire the hash from Nicehash and launch the attack. The second major attack on the Bitcoin Gold network raises a big question about the 51% vulnerability trend of blockchain.
However, the BTG development team has an idea to prevent malicious miners from invading the network and requesting a second blockchain. After the January 2020 attack, BTG developers published one whitepaper called “CCBN: Cross-chain notarization protocol”. CCBN is basically a backup consensus method, promoting a “Notarychain”. This means that CCBN makes notarized BTG blocks become another public blockchain, creating small blocks to reverse. "Notaries contain BTG block headers complete with hash solutions (so they can't be tampered with), bitcoingold.org website explain. BTG developers say that if a miner secretly notifies the blocks, they will become public and if the mining organizations fail to notarize, they will publicize their “secret chain”. “The nodes (will) refuse because of their low weight, preventing the attack,” the programmers emphasized.
“Either the first spending is rejected by (one) exchange, or the second is declined by the chain,” the BTG developer emphasized. “Either way, dual spending fails.”
Bitcoingold website. org explains the concept of CCBN and how it is applied to the Bitcoin Gold network. BTG has been attacked twice in the last two years and the first 51% attack caused BTG to be removed from Bittrex.
The study confirmed the price of BTG being manipulated by a single whale
Price and market performance BTG is also a common topic in recent conversations. BTG is quite volatile and has seen some pump and dump in the last 6 months. Recently one research Blockchain analysis shows that the price of BTG can be manipulated by one or several whales that control a significant portion of the circulating BTG. The author of the study noted that he has been monitoring BTG since mid-August 2018 and found that “every day, about 5,000 to 10,000 BTG are taken out of the market.”
"From August 16, 2018 to July 22, 2019, the cumulative time is 11 months, one or more certain organizations – have entered a large margin for BTG," the author wrote. There are 17,513,924 BTG in circulation at the time of writing, but the research emphasizes that it is assumed that about 11 million BTG are inactive or permanently lost. This is because the number of BTC has not moved (more than 10.7M) for more than a year but there are also some individuals who will refuse to request a coin fork and those BTG will never appear during the day.
1. "The accumulation begins on August 16, 2018 and until July 22, 2019; a total of 340 days. "
2. Long chart of BTG / USD margin.
3. "In early January 2020, BTG / USD increased by at least 150% from the bottom to the top 15 (not too long).
Thanks to these statistics, the researcher estimates there are about 7 million BTG in the market, although the actual number could be much lower (4-5 million). “With previous data, an organization owns a minimum of 38% and a maximum of 48% of supply on an exchange,” the author said. "Assuming you are the only one who accumulates, half of the supply belongs to an organization. It is impossible to extrapolate a lot of information only from long public data. This is where we have to use the best feature of the blockchain: public on-chain information. " The analysis also mentions that just before BTG fell below $ 5 per coin in January 2020, the price witnessed an extremely fast “non-lasting” pump, collecting 150% to $ 15.
“Because the whale can control most of the price by owning a large supply, the coin can be manipulated at whatever price he wants,” the study suggests.
The top 5 BTG addresses according to the BTG rich list are recorded by bitinfocharts.com
The researcher has revealed that the target price the BTG whale wants to get is about $ 22.86 per coin. The study assumes the BTG price will “double from the current price of ~ $ 12 and try to reach the expected price of $ 22. "Continuing developments will be a good example of how large market participants can move markets themselves and smaller traders can follow them using publicly available data." , the author acknowledges. “This is similar to a school of small whales following the sharks to avoid being eaten by sharks – Be small fish.”
Halving Bitcoin Gold network is approaching
At the time of writing, BTG is swapping $ 11.62 per coin and the market is down 2.7% over the past 24 hours. Over the past 90 days, BTG has increased by more than 93% but during the last 12 months, BTG has lost 6.5%. Currently, the Bitcoin Gold network hashrate is 3MH / s and nearly 42% of that hash originates from the Nicehash service. The hourly cost to attack BTG is $ 897 and a daily attack will cost $ 21,524.
Like BTC, BCH and BSV, the BTG network will have a halving and block rewards will be removed for miners. Similar to BCH and BSV, halving the Bitcoin Gold network will take place a few weeks before halving Bitcoin after cutting BCH and BSV block subsidies.
In addition, the list of owners BTG The most shows are 5 addresses controlling 16.8% of the 17.5 million circulating supply. These 5 addresses hold many percent of lost, stolen and BTG coins that are not accepted. The Bitcoin Gold network halves every 210,000 blocks like BTC and halving BTG is expected to take place on Saturday, April 18, 2020, at a height of 630,000 blocks. Just like BTC, BCH and BSV, the Bitcoin Gold network will witness block rewards being cut from 12.5 to 6.25 coins after halving.
You can see the price of BTG here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions
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