Bitcoin block 491,407 is projected to be mined on October 23rd. Those holding Bitcoin in private addresses at that point will receive an equal amount of Bitcoin Gold (BTG). This event has served as a major market catalyst, as Bitcoin Gold hype has pushed Bitcoin upwards more than 40% in the past two weeks.
Presently, some of the most important features promised by the BTG development team have not been delivered. We are now within 24 hours of the event, and replay protection has not been implemented. Without it, accidental cross-chain transactions are possible and inevitable because both coins will share the same private keys. Worse, exchanges and wallets have been unable to provide tangible support for the new currency because the BTG team has withheld the code (seemingly because it isn’t finished writing it). Prominent exchanges have begun to refuse support, citing security risks.
Most notably Coinbase, the largest US exchange, has renounced Bitcoin Gold, saying that its protocol is incompatible with Legacy Bitcoin.
“At this time, Coinbase cannot support bitcoin gold because its developers have not made the code available to the public for review — This is a major security risk.”
Coinbase did, however, allude to possible future support in the following statement:
“If Coinbase were to enable support for bitcoin gold at a future date, customers would be able to withdraw bitcoin gold associated with their Coinbase/GDAX bitcoin balances at the time of the bitcoin gold fork.”
In other words, if it changes its mind, BTG would be retroactively air dropped according to how much Bitcoin was held when it forked.
Add to the confusion, the fact that Bitcoin Gold developers will pre-mine 8,000 blocks (or 100,000 BTG)
So where do I store my Bitcoin to guarantee the Bitcoin Gold dividend?
For quick reference, the following wallets/exchanges have announced planned support for Bitcoin Gold, assuming that the code is finalized, distributed, and secure:
- Bittrex exchange
- Coinomi mining platform
- Trezor hardware wallet
- Ledger hardware wallet
- YoBit exchange
- Cex.io exchange
- HitBTC exchange
Bittrex has confirmed that they will credit users who hold Bitcoin on its exchange through the fork.
“If you have a Bitcoin (BTC) balance on Bittrex during the BTG snapshot block 491,407 occurring approximately on October 23, 11pm PT (6am UTC), you will be additionally credited the equivalent amount of Bitcoin Gold (BTG) on a 1:1 basis. i.e. 1 BTC on Bittrex held during the on-exchange snapshot will get you 1 BTG. BTC held on orders will also be credited. Only the BTC held on your account is eligible for BTG.”
Bittrex will NOT, however, list the currency on its exchange. It cited concerns about its lack of consensus code, lack of replay protection, and lack of transparency among the development team. Meanwhile, they have already suspended Bitcoin transactions. You will be greeted with this message upon trying to access your withdrawal/deposit keys:
Coinomi has detailed the process for securing your new currency through their system. No action will be taken until it goes live on November 1st. They are guaranteeing 24/7 customer support throughout the process and will credit users accounts immediately following the hard fork.
Trezor Hardware Wallet
Users holding Bitcoin in the Trezor wallet will be credited with Bitcoin Gold in a 1-to-1 ratio as reported by CoinTelegraph. Trezor software will not be compatible with BTG, however, to the extent that users may not send or receive it for the foreseeable future. It further details its stance on the matter in the following statement:
“Bitcoin Gold’s codebase is, at the moment of the writing, incomplete. Most importantly, it lacks replay protection. For this reason, TREZOR Wallet will not support Bitcoin Gold yet, as it would endanger your bitcoins.”
Quite interestingly they also mention that all future forked coins will be supported by Trezor:
“With TREZOR, you own your private keys (in form of the seed), therefore you have control over all of your coins, including forked coins.”
Ledger Hardware Wallet
As detailed on Steemit, Ledger Nano S and Ledger Blue wallets will support the fork.
“Ledger will add immediate support for the Bitcoin gold fork if/when the code is available with replay protection and successful/valid.”
Furthermore, support will be available on both the current blockchain as well as the SegWit2x blockchain when applicable.
This tweet on YoBit’s Twitter feed says it all:
HitBTC confirmed today that it would provide full support for Bitcoin Gold. They have already enabled future trading and promised to support B2X as well.
Poloniex is somewhat undecided. It will not provide immediate support, but hints that it will provide support once it is stable and replay protected. The following is their statement on the matter:
Bitpoint has pledged to allocate BTG to its customers. Initially, they offered a caveat that without replay protection they would delay the allocation of the new currency, but since it has officially been implemented, now there is no worry.
Bitflyer promises full support and prompt release of bitcoin gold.
Bitexchange produces LightningASIC miners and Bitcoin ATMs for global distribution. They have a dedicated programming engineer corp dedicated to making their products bitcoin gold compatible when possible.
Platforms NOT supporting Bitcoin Gold
- Coinbase (detailed above)
“The only problem with Bitcoin Gold is that it is still in active development, and its current state does not provide the necessary resources for Exodus to provide a seamless experience for our users. Therefore, we will not support Bitcoin Gold like we support Bitcoin Cash. We will be concentrating our efforts on the upcoming SegWit2X fork in November.”
“As of the writing of this post, October 23, Bitcoin Gold does not have fully formed consensus code or a functional codebase, they have not Implemented replay protection, or have adequate code for testing and auditing, or have publicly known code developers. The BTG codebase does however contain a private premine of 8,000 blocks (100,000 BTG) owned and controlled by those anonymous developers.”
Zaif announced that it had no intentions of supporting bitcoin gold. This statement was made on the basis that replay protection was not planned or implemented. That dynamic has changed, so no we await an update from the company.
- Fisco / Bitbank: Neither of these exchanges plan to support BTG on the same basis as Zaif.
The Final Word
Clearly the community is torn on whether or not to support this hard fork. The lack of replay protection is the most glaring deficiency, and until it is remedied, Bitcoin Gold has an extremely limited chance of success. Evidenced in the positive BTC price action we’ve seen lately, Bitcoin Gold has an incredible amount of support from the community. We are desperate to partake in the most promising Bitcoin update since its inception. The onus is on h4x3rotab and his team to channel the support into a triumphant project, but this feels like a bit of a rushed job at the moment.
Crypto Answers will continue to follow the Bitcoin Gold project. As more wallets and exchanges announce their sentiment, we will aggressively update the information here. Our goal is to compile a comprehensive list, and we’ll provide hourly checks/updates as practical.
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