The new altcoin (branch in the bitcoin network) Bitcoin God will not be able to grow as much in price as its “ancestor” – the traditional bitcoin (BTC, Bitcoin Classic), experts assured by the Prime agency.
On the night of Thursday, another hardcore took place (the introduction of a new protocol, resulting in the formation of altcoin) in the network bitcoin. The total volume of the new crypto currency issue, which should be launched, Bitcoin God (GOD), is 21 million tokens.
What we know about Bitcoin God?
Bitcoin God (GOD) does not replace the official Bitcoin (BTC), but is a new independent currency
GOD is technically independent of BTC. He has his own development team, the head is the Chinese businessman Chandler Guo. Its creation was not the result of voting by the BTC community. After fork, BTC retains its algorithm and continues to trade in the same place as before. Even if in the future GOD will compete with him, now he does not attempt to work for BTC. In addition to free new coins in the wallet, which we will discuss below.
In the purses of BTC owners there will be free coins GOD
A similar gift holders BTC received, for example, when the currency Bitcoin Cash (BCH). How valuable is the new GOD gift – it is not yet clear whether the market will decide this.
GOD has technical advantages over BTC
As you know, BTC has a number of technical problems, among which – low network bandwidth. He has a small block block size, which in November wanted to increase from 1 MB to 2 MB, but the community could not reach consensus. Since August, it has the technology SegWit, which allows you to do a lot of transactions around the block, but it is still not used in full force. On the other hand, the nearest BTC competitor, Bitcoin Cash (BCH), has a huge block of 8 MB, but does not use SegWit. Bitcoin GOD promises to include the advantages of both currencies and add to them some more.
On the official website, developers claim the following benefits of GOD. First, the currency supports SegWit (and in the future – and the Lightning Network) and simultaneously has an enlarged block. Secondly, the currency is anonymous – like ZCash (ZEC), Dash (DASH), Monero (XMR). Thirdly, the currency supports the smart contracts that the currency Ethereum (ETH) is so famous for.
Thus, GOD fully or partially “took on board” the advantages of a number of coins: BTC (SegWit / LN), BCH (large block), ZEC & DASH & XMR (anonymity), ETH (smart contracts).
GOD uses a radically different mining model: PoS instead of PoW
The modern agiotage around mining mainly revolves around one of its methods: PoW (Proof of Work). The award for PoW is proportional to the computing power that the miner provided for network maintenance. The result of this is the competition between the miners and a large consumption of electricity. But each transaction is confirmed by a number of network participants, which ensures its decentralization. It is PoW used in BTC and a lot of other coins. But PoW has both pluses and minuses.
From the point of view of PoW enthusiasts, it not only ensures decentralization, but also gives people income for participating in the creation of a new economy. There is a global redistribution of capital in favor of those who are ideologically close to the creators of crypto-currencies – the supporters of a free non-state market. Even if an accidental person started to engage in mining, he, if to use Marxist terminology, still becomes classically close to the crypto-currency community. He will, as a minimum, be interested in liberal laws over crypto-currencies.
But the main goal of PoW is not enrichment of miners, and, especially, not high energy consumption. The goal is decentralization of the network, protecting it from attacks. And not everyone agrees that PoW is the best method for this. Moreover, most of the miners are united in huge pools. PoS (Proof of Stake) is an energy-efficient alternative to PoW, in which the reward depends not on the energy spent, but on the number of coins in the member’s purse.
GOD uses the PoS method. It’s hard to say whether this will be useful for popularizing the currency. But it is clear that the current bitcoin-miners will not abandon their activities in favor of a new currency, where their capacities are useless. This is another factor, thanks to which GOD has not yet made an attempt on the BTC network.
What about the perspectives?
The new crypto currency is expected to begin operating fully in the first quarter of 2018. But experts say that few participants of the market know about this project. And without the support from kriptornka, and in the absence of significant technical features of this crypto currency, there are no prospects for the development of Bitcoin God, they believe.
As the senior analyst of Alpari, Roman Tkachuk, said, market participants do not place high hopes on the new altcoyin. “There are no breakthrough technologies in it, and there is not enough information on its website, we expect that its course after hardforks will rush down, as it previously happened with Bitcoin Gold,” he said.
According to the expert, this is very typical for the current moment – new bitcoins are happening almost every day, but their significance is not great.
“Now anyone who wishes can declare about the hard-core, a branch from the classical bitcoin, it reduces their value and undermines the confidence in the bitcoin itself.” The most important were the first bitcoins of Bitcoin – LiteCoin and Bitcoin Cash, they really had the idea – the solution to the problem of scalability, ” – he noted.
“The community does not have a single opinion on the new fork, there is no mass support for Bitcoin God, there is no strong public relations either, so there is not expected to be a rapid growth, and especially for the first places with Bitcoin Cash and traditional bitcoin,” the founder of group of companies Blockchain.ru Dmitry Matsuk.
He pointed to some characteristics of the new crypto currency, indicated on the project site. However, they do not carry much value for cryptology, he believes. In particular, the project is declared as charitable, since 4 million tokens of 21 million, received during the mining, will be transferred for this purpose.
The head of the Waves Platform press service in Russia, Gleb Kostarev, took an even tougher stance on the project. According to him, the declared charity is most likely a PR move.
“The fork is unlikely to develop much, and it will not be one more in the row with Bitcoin Gold.” It should be understood that the forks are partly motivated by financial motives, “the expert said.
Mansur Huseynov, Director for Investments in the Investment Fund of CryptoLife, in his turn, noted that the project has a website, an ambitious development program.
“To do this, you need a serious team and a lot of work, and if they have it, I do not see the sense to implement the project in the form of a fork.” It would be worthwhile to launch a new currency. “About the team, by the way, nothing has been heard, code of the project on GitHub “, – he concluded.