The hard fork that recently occurred on the Bitcoin platform is setting an example for other similar situations in the market. Many have criticized the use of hard forks due to the fact that they are essentially making money out of thin air, but others are extremely enthusiastic.
It is undeniable that there are a myriad of useless tokens created across the most popular blockchain platforms, but it is only serving to increase the size of the market. The newest hard fork in the market, or splitting of blockchains, is known as Ethereum Gold. This new currency is similar to the hard fork that recently occurred on the Bitcoin platform. Many are criticizing this because there is not a clear purpose for why it is occurring.
Looking at the website for Ethereum Gold doesn’t clear things up any more. Apparently, it is a “smart-contract governed ecosystem which uses blockchain technology by using the value of gold.” This doesn’t make too much sense when thought about, but it does show that there is a purpose for everything. The website also states that the currency was created by “a team of top technology and finance professionals.” This is not proven or justified, but could be possible.
The use of these hard forks is stirring a lot of uncertainty in the market as people are unsure of what to make of it. One of the biggest issues is if it quickly becomes a pump and dump scheme. The value of the coin has nearly tripled in the course of 24 hours and does not look like it is slowing down any time soon. This may be a solid short-term investment but investors should be wary of price fluctuations and the extreme volatility in the market.