Business 1 year ago

Jasmine Solana

Beware of the fake Bitcoin Gold site asking for your private keys

If you haven’t heard already, there’s a new Bitcoin coming to town.

A group of Bitcoiners has taken a leaf out of Bitcoin Cash’s book and announced that come October 25, they will be forking from the blockchain network and create yet another version of the world’s most popular cryptocurrency. And this, they said, shall be called Bitcoin Gold (BTG).

Make no mistake, however, Bitcoin Gold’s agenda is different compared to Bitcoin Cash nor the upcoming SegWit2X hard fork in November. The two are seeking to scale the Bitcoin network to handle more traffic, whereas Bitcoin Gold is looking to have more people take a slice of the mining industry’s profits.

The project is created by Hong Kong mining firm Lightning ASIC founder Jack Liao and a developer who goes by “h4x3” code name, and its goal is to change the Bitcoin’s consensus algorithm to allow users to mine the cryptocurrency using graphic processing units (GPUs), among other things. Bitcoin Gold plans to use the Equihash algorithm, which will enable home computer hardware like GPUs to profitably mine Bitcoin Gold. Distributed server processing system Ethereum currently allows GPU mining, but it is switching to a new mining scheme soon, which means that Bitcoin Gold is a piece of good news for those with leftover GPU rigs looking for cryptocurrency to mine.

“Bitcoin Gold implements the UAHF [user activated hard fork] proposal to accept GPU mining,” according to BTCGPU website archive. “Miners can choose the size of the blocks they want to mine, with a default of 1 MB. It includes replay and wipeout protection.”

Red flags

But will Bitcoin Gold really save the world or it is just the latest in the long line of scams in the cryptocurrency space?

The Bitcoin Gold project has yet to get off the ground, but potential red flags have already started to fly. First and foremost, there are no technical information about Bitcoin Gold—not on the project’s website, nor on its GitHub and Slack channel. And this project is scheduled to launch in a couple of weeks.

Bitcoin Gold also plans to use the same address format as Bitcoin Cash and legacy Bitcoin (BTC), which makes things even more confusing for users. Previously, there have been reports of users losing their Bitcoin Cash tokens after they mistakenly sent them to Bitcoin addresses. Developer “h4x3” told MotherBoard that they will have a new address format for Bitcoin Gold, “but that will come after the launch.”

The most troublesome part, however, is that there are already scams that are taking advantage of some cryptocurrency enthusiasts.

Case in point is the website, which asks for the user’s private key to “guarantee” that they can claim their BTC balance—a pure and simple scamming tactic. Members of the cryptocurrency community have already reported the site to Google, but expect that this is not the last time we will see such kind of a phishing scam.

It’s clear that Bitcoin Gold has no place in the cryptocurrency space, and is only creating unnecessary drama to complicate the sector’s search for the one true Bitcoin. Bitcoin Cash is the only adult fork existing and it continues to move forward post the blockchain split in August.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Satoshi Vision (BSV) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.


Add a Comment

lastest news

Swiss executive government wants laws more suited to blockchain

Business 4 hours ago

Swiss executive government wants laws more suited to blockchain

The Swiss Federal Council believes that the country’s laws could be better adapted for integrating blockchain. In its report, ‘Legal basis for distributed ledger technology and blockchain in Switzerland,’ the council said that the existing ...

Read More
2 crypto investment projects face 90-day suspension in Italy

Business 5 hours ago

2 crypto investment projects face 90-day suspension in Italy

For precautionary reasons, Italian securities regulator Commissione Nazionale per le Società e la Borsa (CONSOB) has suspended two projects that were reportedly offering fraudulent crypto investment schemes in the country. Effective Dec. 12, Bitsurge Token ...

Read More
France: AMF blocks four more crypto firms

Business 13 hours ago

France: AMF blocks four more crypto firms

The Autorité des marchés financiers (AMF), the financial authority in France, warned the public against unauthorized investment offerings in the country. According to the announcement, the financial authority stated that they had blacklisted four more ...

Read More