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How We're Positioned for the Bitcoin Gold Fork & Why $BTC is Heading Higher


Quick technical note on where Bitcoin is at right now ...and then we'll get into how we're positioning for the Bitcoin fork of Bitcoin Gold and address how we intend to get our airdropped delivery of Bitcoin Gold once the fork happens on October 25th - what to watch/plan for:

The old pivot high of $5,000 has been considered to have been revisited per this bullish hammer low of $5101.36. Remember, Bitcoin has a perfect track record of always revisiting prior pivot highs. The last pivot high was $5,000. That Bitcoin got as low as $5101.36 on the recent pullback and then authoritatively bounced with a strong bullish hammer candle bar…is good enough evidence to categorically fulfill the requirement that “all pivot highs” get revisited. Even though it didn’t hit the exact $5000 low…$5101 is less than 2% difference. We consider that the target was fulfilled. And as such, the trend of higher highs continuing from here has been given the all clear. So we continue to remain long with a high degree of confidence as this trend is strong like bull. If the technical picture shows a prominent change brewing we'll be sure to update Members. In the meantime...HODL


As we discussed at the beginning of October, the in vogue trade for cryptocurrencies was to be overweight on Bitcoin largely due to the 2 impending hard/soft forks that are scheduled for both October and another one potentially in November. As we know, the October hard fork is official and will take place on October 25th.

We explained that due to the frenzy & upside that occurred on the August 1st hard fork where Bitcoin Cash was created....anyone that owned x# of Bitcoin received double the ledger of x# of Bitcoin Cash (BCC).

Note: Doubling of coins does not mean doubling of value, because after a hard fork, the value of both versions of coins are determined based on user sentiments and demand/supply in the market. So keeping that point in mind

So if you owned 10 BTC then you still had your 10 BTC and then out of nowhere you also had 10 Bitcoin Cash as well. As we remember, BCC opened around the $200 range and then went up to as high $1400 on some exchanges. We sold our BCC short around $850. Still a very strong gain for being airdropped free Bitcoin Cash.

The point here is this: the frenzy that occurred on the last fork is creating the perception that the something of the similar narrative will happen again on the Bitcoin Gold fork. We don't think that Bitcoin Gold will open or trade anywhere near the values we saw with Bitcoin Cash. So please don't get enrolled in the notion that the same thing will happen here. The price of Bitcoin Cash was inherently driven by community & miner support in tandem with the # of crypto custodial exchanges that supported Bitcoin Cash integration. In comparison to Bitcoin Cash...if we were to compare the sentiment to BCC relative to the sentiment of Bitcoin Gold...Bitcoin Gold's community support & sentiment is less than half of what we saw from Bitcoin Cash's community support and exchange integration. That could change, but as of now, my opinion sees Bitcoin Gold as something that will be much less valuable than Bitcoin Cash.

HOW WE'VE POSITIONED:

So let's address how we've positioned our BTC in anticipation of being airdropped delivery of Bitcoin Gold: We've stored our Bitcoin in the Exodus wallet https://www.exodus.io/ where we maintain full control our own private keys. Our BTC at this time is not with Coinbase or Bittrex or any other exchanges. Some crypto exchanges will support BTG...for example, we did in fact have some BTC in Bittrex on the August 1st fork and Bittrex did indeed fulfill depositing my account with the Bitcoin Cash in equal amounts to whatever BTC was stored with Bittrex. So some exchanges will support the split but some do not. You can't relay on exchanges or Coinbase to comply with the split. Crypto exchanges are custodial businesses, which means they control your private keys, not you. When the Bitcoin Gold fork occurs on October 25, any exchange that is holding BTC on your behalf will also receive the corresponding BTG. While they should credit your account with the equal amount of BTG, there is no legal authority that can force them to do so.

If you want access to your BTG coins, you need to take care of two things:

  • You should have your private keys.

  • You should avoid being replay attacked.

And here’s the important part: Both of your coins (BTC and BTG) will have the same private keys.

Moreover, due to this fork/split, another problem called Replay Attacks can happen.

Though, Bitcoin Gold say's on their homepage ( https://btcgpu.org/ ) that they have replay protection in place, but we are not sure how effective it is as it has not been tested live.

So to avoid replay attacks and access your free BTG coins, we suggest you take care of the following things:

  1. Avoid transactions for some days until the dust settles to avoid replay attacks.

  2. Keep your Bitcoin private keys with you, not in a third party exchange like Coinbase.

  3. Use cold-storage hardware wallets like the Ledger Nano S and Trezor. Last time, during the Bitcoin Cash fork, these two hardware wallets were the first to support the forked coin.

  4. If you don’t have a hardware wallet, use software wallets like Mycelium, Jaxx, Coinomi, and Exodus to control your private keys.

  • You can review CoinSutra's The Top 5 Best Bitcoin Wallets That You Should Use For Storing BTC here → https://coinsutra.com/best-bitcoin-wallets/

  1. You can also use a paper wallet or brain wallet.

  2. If you hold your keys in a paper wallet or software wallet, wait for instructions on how to access your BTG coins.

The official Bitcoin Gold website discusses in their FAQ how to ensure you get your free Bitcoin Gold. There is only 1 day ever that will occur and it's on October 25th contingent that you are holding your own Bitcoin in your own wallet in which you control your own private keys. Here is there FAQ verbatim copied from their website → https://btcgpu.org/faq/ I have highlighted in yellow the areas that specify how to obtain Bitcoin Gold:

What is Bitcoin Gold?

Bitcoin Gold is a fork of the Bitcoin blockchain that will occur on October 25, 2017. At the predetermined block height, Bitcoin Gold miners will begin creating blocks with a new proof-of-work algorithm, and this will cause a bifurcation of the Bitcoin blockchain. The original Bitcoin blockchain will continue on unaltered, but a new branch of the blockchain will split off from the original chain. The new branch is a distinct blockchain with the same transaction history as Bitcoin up until the fork, but then diverges from it. As a result of this process, a new cryptocurrency will be born.

What is the purpose of Bitcoin Gold?

The purpose of Bitcoin Gold is to make Bitcoin mining decentralized again. Satoshi Nakamoto’s idealistic vision of “one CPU one vote” has been superseded by a reality where the manufacture and distribution of mining equipment has become dominated by a very small number of entities, some of which have engaged in abusive practices against individual miners and the Bitcoin network as a whole. By changing Bitcoin’s proof-of-work algorithm from SHA256 to Equihash, all of the specialized SHA256 mining equipment will be obsolete for mining the Bitcoin Gold blockchain. Thus, Bitcoin Gold will provide an opportunity for countless new people around the world to participate in the mining process with widely-available consumer hardware that is manufactured and distributed by reputable mainstream corporations. A more decentralized, democratic mining infrastructure is more resilient and more in line with Satoshi’s original vision.

Is Bitcoin Gold a competitor of Bitcoin?

No. Bitcoin Cash and B2X are hostile forks that use the same PoW algorithm as Bitcoin – SHA256 – which results in a permanent state of conflict over a finite amount of ASIC mining hardware that is required for solving SHA256 proof-of-work. Bitcoin Gold, on the other hand, uses the Equihash PoW algorithm, which cannot be solved using ASICs that have been designed for Bitcoin. This ensures that Bitcoin Gold is not in competition with Bitcoin over limited resources. Instead, Bitcoin Gold will have an entirely different mining infrastructure, consisting of general purpose computer hardware (GPUs).

How can I get Bitcoin Gold?

The Bitcoin Gold (BTG) initial coin distribution method is exactly the same as that used by Bitcoin Cash (BCH). All Bitcoin holders who possess BTC private keys on the October 25 (block 491 407) will receive Bitcoin Gold on the rate of 1 BTC = 1 BTC (If you have 20 BTC you will receive 20 BTG). You need to control BTC private keys in order to make Bitcoin Gold transactions.

What wallet should I keep my BTC in to make sure I get my free BTG?

Any secure Bitcoin wallet that gives the user exclusive control of the cryptographic private keys is a suitable location to store your coins prior to the October 25 fork. Some wallets may offer you direct access to your BTG, while others may require you to take additional technical steps. Verified wallets that support BTC and BTG side-by-side will be listed on the Bitcoin Gold home page. We will publish guides for retrieving BTG from the most popular wallets, including Bitcoin Core, Electrum, Mycelium, hardware wallets, paper wallets, and more.

If I have BTC in long-term cold storage, do I need to move it somewhere else to get free BTG?

No. If you have BTC in a paper wallet, hardware wallet, multi-signature address, or any other form of secure private key storage, you will be able to claim your corresponding BTG at any time in the future. There is no expiration date for claiming your free BTG. If you have BTC in cold storage that you did not plan to touch for many years, do not change your plans because of this fork. Your free BTG will still be there decades from now.

How can I get Bitcoin Gold after the October 25 fork?

The October 25 hard fork is the one and only opportunity to get free BTG. After that time, your options to acquire it will be to buy it on an exchange like any other cryptocurrency, to mine it with your own computer hardware (GPUs), or to earn it by trading your goods and services for it.

If I have BTC on an exchange at the time of the fork, will I get my free BTG?

Cryptocurrency exchanges are custodial businesses, which means they control your private keys, not you. When the Bitcoin Gold fork occurs on October 25, any exchange that is holding BTC on your behalf will also receive the corresponding BTG. While they should credit your account with the equal amount of BTG, there is no legal authority that can force them to do so. The Bitcoin Gold home page will display the names and logos of exchanges that have promised to credit their users with BTG at the 1:1 ratio. If your exchange is not shown, please consider transferring your BTC to a supporting exchange or withdraw to a personal wallet where you control the private keys.

How can I sell my Bitcoin Gold?

You can sell your BTG at any of the exchanges listed on our home page. You can also sell your coins in a private trade with a trusted broker.

Should I buy Bitcoin Gold?

As the developers of the project, it’s not our role to make price predictions or give investment advice. We are creating BTG as a free dividend for BTC holders, so you don’t need to buy it. If you own BTC you will automatically receive an equal amount of BTG. You can receive the full benefits of this project without any additional risk simply by holding Bitcoin, the best form of money the world has ever seen, on October 25.

How do I mine Bitcoin Gold?

You can solo mine BTG using the full node client or you can mine with a pool. Some public mining pools that have worked with us are listed on our home page. We invite you to join our Slack #mining channel for technical help and advice about mining BTG.

How do I run a Bitcoin Gold full node?

The Bitcoin Gold full node client with signed prebuilt binaries will be available for download at btcgpu.org and the source code can be found at https://github.com/BTCGPU/BTCGPU. These are the only two sites affiliated with the Bitcoin Gold development team.


Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”

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