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For two days, the price of bitcoin has struggled to recover above $ 5,500 $ 6,000 Analysts have attributed the recent decline in the price of bitcoin to the next bitcoin fork Gold coming, and the lack of support from the community.
Earlier today, October 25, the price of bitcoin dropped below $ 5,400 to $ 5,365. Since then, over a relatively short period of time, the price of bitcoin has rebounded to $ 5,500, but despite that, because of the Bitcoin Gold range that must take place before the SegWit2x rigid fork on November 16, the Bitcoin price will probably remain in the fork. $ 5,500 from the region, at least until the Bitcoin Gold development team adds strong replay protection.
Bitcoin Gold and its negative impact on the Bitcoin price
The Bitcoin Gold fork was suddenly introduced by Chinese miner Jack Liao earlier this month. Essentially, the long-term vision of Liao and the Bitcoin Gold team is to bridge the gap between ASIC mining and GPU / CPU operation, in order to decentralize the mining industry .
But, the bitcoin and cryptocurrency community has criticized the fork of BItcoin Gold, mainly because of its unoriginal and unrealizable idea, and also because of its crypto-currency predation plans. In the cryptocurrency market, the concept of creating a cryptocurrency before its launch is not welcomed by investors, traders, users and developers, as it leads to a centralization of funds and the offer before the launch. Major Cryptocurrencies like Dash have been criticized for this reason in the past.
In addition, the community was fundamentally opposed to the Bitcoin Gold fork because of its lack of protection against repetition. Without this, investors and Bitcoin holders before the range will not be able to receive Bitcoin Gold in a ratio of 1: 1, as this would endanger existing bitcoins. As Trezor's development team explained:
"The Bitcoin Gold code base is, at the time of writing, incomplete.More importantly, it has no protection against repetition.For this reason, TREZOR Wallet does not support Bitcoin Gold yet, as this would endanger your bitcoins.As bitcoin gold is a bitcoin fork, the transaction format, signatures, etc. are the same.A transaction on a string could be copied to the bitcoin. another chain and will be valid, which could lead to an involuntary loss of parts. "
Therefore, as Jimmy Song, developer of bitcoins, explained, Bitcoin investors began selling their holdings and temporarily switching to other cryptocurrencies (altcoins) to avoid fork Bitcoin Gold.
Well, Bitcoin Gold is now frozen at this block. It does not seem like a coincidence that many people sold themselves almost immediately afterwards. pic.twitter.com/sdh2njb7OH
– Jimmy Song (@jimmysong) October 24, 2017
Short-term price trend
The Bitcoin Gold Development Team announced that it had the intention of incorporating a strong protection against replay before its tough operation. But, as major cryptocurrency exchanges such as Bittrex have noted, the code base itself is not ready, and most of the Bitcoin Gold code base does not have it. has not been tested and audited.
Unless Bitcoin Gold's development team is increasing the protection of replay in the coming days, the price of bitcoin will likely suffer as a direct result. While analysts like Tuur Demeester predicted a similar trend with SegWit2x in mid-November, since SegWit2x has a protection against repetition, it's likely that a massive sell will not happen.
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