- Today, total cryptocurrency market cap jumped +10.2% from a low of $1.409 trillion on June 08th.
- Bitcoin Gold (BTG) is performing strongly, up +33.43% in 24 hours.
- Meanwhile, the Internet Computer Protocol (ICP) is down -1.10%.
Bitcoin Gold is a spinoff of Bitcoin created by a hard fork in October 2017. It aims to decentralize bitcoin’s mining process by using a proof-of-work algorithm, called Equihash-BTG, that can be solved by regular computers.
The idea is to stop mining pools, which own expensive and energy-intensive equipment, from dominating the process.
Why is price up?
Bitcoin Gold’s price is up 720% since the start of 2021. Its recent price increase could be driven by news that governments worldwide are cracking down on crypto transactions.
On May 20th, the Biden administration announced that crypto transactions over $10,000 should be reported for tax purposes and on June 08th Denmark announced updates to its tax code, to ensure crypto transactions are recorded correctly.
Concerns about increasing government scrutiny may be encouraging investment in Bitcoin Gold which protects the anonymity of its holders by not publishing transaction details or wallet addresses.
A spike in transaction volume on May 23rd amid a market-wide price correction suggests investors bought the dip. A sharp increase in BTG’s transaction volume after June 07th follows bullish comments from the investment firm SkyBridge Capital.
CEO Troy Gayeski told Bloomberg that bitcoin is likely to continue gaining this year, potentially boosting investor confidence in bitcoin and its forks. He said:
We’re going to stick to bitcoin and crypto because we just think there’s more upside.
Internet Computer Protocol
ICP powers the Internet Computer, one of the most ambitious projects in crypto, which is creating a decentralised version of the internet.
The aim is for the Internet Computer to become the platform upon which every web service is built, challenging the power of web hosting services like Facebook, Amazon and Google
Why is price down?
Today, ICP hit its all-time-low of $77.56 tumbling -88.2% below its price at launch on May 10th.
Shortly after its initial public listing, ICP tokens traded at $700.65 taking ICP into the top 10 crypto projects – recent price drops have seen the project slip back to 14th position.
Downward price pressure has been increased by recent criticism. Coin Bureau published a popular video pointing out that Dfinity, the company that founded the Internet Computer, retains almost total control over its governance.
To gain voting rights, ICP holders have to lock up their coins to gain governance power. These rights are only proportional to the amount of coins they locked. While Dfinity’s CEO Dominic Williams denies ICP’s governance model is centralized, he confirmed that 25% of circulating supply is held by the Foundation.
With only 26.65% of remaining supply in circulation, this gives the Dfinity Foundation near-majority control.
Transaction volume is down 39% since launch suggesting that investors are feeling wary after an initial period of hype. Graph 2 shows that ICP’s RSI score has remained below 30 over the past fortnight suggesting ICP is oversold by investors as they shed the coin.