Bitcoin Gold is an interesting experiment. This Hardfork from Bitcoin had high ambitions in the beginning. But it looks like things aren’t going so well. Mining is almost centralized, so the ecosystem is exposed to a serious threat.
The Bitcoin Gold Network Problems according to www.onlinebetrug.net/en/
In the world of crypto currency, several problems can affect any network like shown here: https://www.onlinebetrug.net/en/. The so-called 51% attack is one of the worst scenarios. It means that someone controls most of the processing power of the blockchain. This puts transactions, payments and decentralization at great risk.
In the case of Bitcoin Gold, the person controlling the network has malicious intentions. The ability to manipulate transactions has far-reaching negative consequences for the entire Bitcoin Gold infrastructure.
This applies in particular to mining pools, crypto exchanges and wallet providers that operate with Bitcoin Gold. So far it is unclear how much damage has been done. Any transaction transmitted over the network can be manipulated. In the worst case, the transmission is not even accepted by the network.
Not the first Ethereum code
Although this latest case is a major cause for concern, it is not the only one. Since the release of BTG, there have been many concerns and technical problems. Attacks in the sense of double spending Ethereum code have been present for a week.
Double Spending means that a Bitcoin Gold can be spent several times. In the past there have been problems due to mining at BTG. Despite the hard fork from Bitcoin, Bitcoin Gold has not inherited the security and strength.
At the moment every crypto exchange has to be careful. Any platform that accepts Bitcoin Gold deposits without additional verification is at immense risk. Ensuring that all deposits are cleared and legitimate is the only way to counteract this. It is likely that most crypto exchanges will suspend trading Bitcoin gold because the risk is too great.
This is not the first time that smaller crypto currencies have been affected by such attacks. Verge has recently faced several attacks. Bitcoin and Ethereum will hardly suffer from such problems in the foreseeable future, because the hash performance is enormous and it would prove difficult and above all cost-intensive to acquire 51% of the hash performance. Ethereum will switch to Proof of Stake in the long run anyway.