In the hundred of the largest by capitalization, five cryptocurrencies have the word Bitcoin in the title. Some of them deserve attention, but these are few, because basically they are created only in order to make them richer than their developers.
At the moment, there are 2,352 coins on the digital money market, but only one of them occupies 65% of the entire industry — this is Bitcoin. The asset, created by Satoshi Nakamoto in 2008, is the most famous cryptocurrency, almost all people associate it with the blockchain industry as a whole. Bitcoin attracts not only enthusiasts and developers, but also fraudsters. Indeed, it is only at the expense of a well-known name that you can ensure the success of your project, especially in the young field, which often attracts people who want to make money on the growth rate, but are not well versed. However, among all sorts of “bitcoins” there are some projects that are worth paying attention to.
If the basic number of forks simply adds some word to Bitcoin, be it Silver, Private, Super or Ultimate (yes, these are all real coins), then some follow the path of phishing attacks. At first glance, you may not understand that Bitcoiin is not a typo in a familiar word, but a separate cryptocurrency. Usually fraudsters use this method when they substitute one letter in the name of a website, as a result of which it is extremely difficult to notice the difference. An indicator that the project developers are not trying to move progress, but earn, constant sharp fluctuations in the rate for no apparent reason and with low trading volumes. In February, the cryptocurrency hit the top 80 Coinmarketcap, its price reached $ 1.26. Now the course is at $ 0.02, and the project takes 714 place, all in the same rating with trading volumes of $ 4,000. Project leaders promised listing on 10 major exchanges at the same time, but this did not happen.
Bitcoin Gold cryptocurrency appeared in October 2017, its creator – Hong Kong entrepreneur Jack Liao. The project was supposed to optimize the original Bitcoin protocol, destroy the Asiki monopoly and increase the network bandwidth. The main difference between Bitcoin Gold and the original Bitcoin is that forks can be mined on GPU graphics cards. When Bitmain released ASIC for the Equihash algorithm, on which altcoin works, the team promised to continue the fight and conducted hard forks. Initially, network security was one of the main tasks of developers. It was not achieved, since less than a year after launch, the blockchain was attacked by 51%. As a result, the hacker managed to steal $ 18 million worth of coins. The criminal obtained full control over the system and stole funds from various trading platforms. Now Bitcoin Gold is on the 26th place in the list of cryptocurrencies largest in terms of capitalization. Its price is $ 27, while at the peak in January last year it reached $ 474.
Like many other Bitcoin forks, Diamond was born in 2017, when the digital money market was in the “HYPE”. Last October, an analyst at the rating agency Weiss Rating called the cryptocurrency “terrible” and advised not to invest in it. The specialist stressed that the project leaders made minor changes to the Bitcoin code, and filed them as a great discovery. The development team is anonymous, which also caused a lot of controversy in the community (often, if the creators of the project do not reveal their personalities – this is a cause for concern). The user of the portal Medium bitcoinblooddiamond even published a whole investigation, in which he tried to explain why Bitcoin Diamond is a fraud, also stating that the project does not have its own blockchain and code, but was created only to deceive users and get rich from them. Nevertheless, BCD is now at the 45th place in the list of cryptocurrencies largest in terms of capitalization, with a price of $ 0.815 (the total emission of an asset is 210 million, not 21 million, like in Bitcoin). In November 2017, the cost of the coin was $ 85, due to such an impressive fall, now the ROI of the coin almost reached -99%.
In August 2017, there was a conflict between Chinese Bitcoin programmers and Western miners. Some – they wanted to increase the block in the first cryptocurrency network, others – were in favor of changing its contents. In the end, everyone agreed to conduct softfork using segwit software, but part of the community considered this not to be an effective enough solution to the problem. As a result, the chain was divided, and Bitcoin Cash appeared. Now developers are trying to increase transaction speed by increasing the block size, while BCash’s ardent supporter, Roger Ver, actively promotes the coin, explaining in passing that this is real Bitcoin. According to Vera, Satoshi Nakamoto’s cryptocurrency should in the first place be a convenient, affordable and reliable means of payment, and not an analog of gold. Bitcoin Cash is in fifth place in the list of cryptocurrencies largest in terms of capitalization. Now its price is $ 316, at the peak it exceeded $ 4,200.
Bitcoin Cash suffered the same fate as the original cryptocurrency. The planned update turned into a conflict, as the developers proposed two incompatible clients – Bitcoin ABC and Bitcoin SV. The result is Bitcoin SV (Satoshi Vision) cryptocurrency, which is actively promoted by Craig Wright, who calls himself Satoshi Nakamoto, but does not have any real evidence to support these words. Bitcoin SV ranks ninth in the Coinmarketcap ranking, and its course is now at $ 135. In June, the coin set a historical maximum of $ 252.
While successive Bitcoin forks branch out the cryptocurrency blockchain, trying to solve its problems, Microsoft is confident that all these projects are unpromising. One of the directors of technology giant Alex Simons last February published a study in which he found out that second-level solutions, such as the Lighting Network, work much better. Simons is sure that forks are too centralized, and in the future they will be much inferior to the first cryptocurrency both in speed and in transaction costs. The active implementation of second-level systems will make forks just useless, which will lead to a drop in their price to zero. So far this is just a theory and reasoning, but already now you can see how Bitcoin dominates the market. Not a single altcoin could compete with it, and the first cryptocurrency was increasingly called a tool for hedging risks and “digital gold”.