Although Bitcoin Gold is a hard fork of the original Bitcoin blockchain, it’s not really a competitor to Bitcoin. The fundamental change in Bitcoin Gold is choosing a different hashing algorithm that makes proof of work more difficult for ASICs. This is accomplished when a hashing algorithm requires more memory (RAM) to complete. Since ASICs are about pure processing power, requiring more memory bottlenecks their processing ability. If Bitcoin’s price is higher than the daily limit allowed by your exchange, you’ll only be able to do it in smaller increments. If you don’t own many Bitcoins, it might be a much more liquid asset for you.
Is Bitcoin Gold a Competitor to Bitcoin?
The founders of Bitcoin Gold instead use another algorithm known as Equihash. Alex Biryukov and Dmitry Khovratovich developed Equihash as an ASIC-resistant algorithm, and it has already seen success powering other cryptocurrencies, the most famous of which is Zcash. Bitcoin Gold hopes to change the paradigm around mining on the Bitcoin blockchain. According to the founders, the Bitcoin blockchain has become too centralized. Large companies with huge banks of mining computers now mine the vast majority of Bitcoin.
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Since co-founding Bitcoin Gold in 2017, he has also launched another company called GoStartups.net. This case serves as an intriguing example of market dynamics and highlights the unpredictable nature of cryptocurrency investing. In an interesting episode that happened in 2021, Bitcoin Gold (BTG) saw an unanticipated surge of 173% in its value, a phenomenon largely attributed to a case of mistaken identity.
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Bennett is an editor at Coin Central and freelance technology writer specializing in blockchain, software development, and AI writing. Visit Bennett’s personal website to learn more about him and read more of his writing. Everyone on the Bitcoin network received will receive BTG, so there’s potential for widespread adoption. The set-up process is relatively simple, how to earn bitcoin and you mine with just a GPU – no ASICs required. In addition, most successful Bitcoin mining operations today involve entire rooms or warehouses full of ASICs running 24/7. What started as normal computers on the original Bitcoin network soon graduated to specialized rigs with graphics processing units (GPUs) installed to hash the proof of work faster.
Bitcoin Gold Latest News
- BTG is a cryptocurrency with Bitcoin fundamentals, mined on common GPUs instead of specialty ASICs.
- This is an example of a «second layer» solution living atop the main blockchain.
- Unlike other blockchains (including Bitcoin), Bitcoin Gold sought to increase anonymity by not publishing transaction details or wallet addresses.
- BTG enhances and extends the crypto space with a blockchain closely compatible with Bitcoin (with SegWit and Lightning Network) but without using resources like Bitcoin hashpower or vying for the «real Bitcoin» title.
- One of the primary goals of Bitcoin Gold was to change the algorithm by which the cryptocurrency itself is mined, meaning that the mining process cannot be run faster on specialized equipment than on standard computer systems.
- These attacks, enabling hackers to double-spend BTG, resulted in considerable financial losses and highlighted potential vulnerabilities in the network’s security, further adding to investor caution.
Individuals attempting to mine bitcoin alone either have to invest a considerable amount of money in their own rigs and join a pool or get passed by in the process, as single miners cannot generally compete with mining farms and pools. The general consensus from Bitcoin experts is https://cryptolisting.org/ there’s not enough new in Bitcoin Gold to warrant an independent investment. While it certainly doesn’t hurt to hold onto your free BTG that you receive as a result of the fork (if you owned Bitcoin before Oct 24), wait until the dust settles before deciding whether to buy more.
Bitcoin Gold was delisted from some exchanges after the blockchain was attacked, and the developers refused to help with damages. The legacy of Bitcoin Gold is one steeped in controversy from the beginning. Within one day after the launch, miners accused one of the developers of Bitcoin Gold of adding a 0.5% mining pool fee hidden from the mining community. There was also concern that Bitcoin Gold’s security measures were not as robust as they had initially claimed, and these flaws could result in increased vulnerability to threats. You’ve got over ten to choose from with pool.gold as one of the most popular options.
Most new cryptocurrencies involve ASIC-resistant hashing algorithms, and it’s becoming something of an industry standard to promote decentralization. At its core, it’s about transitioning the Bitcoin network to more decentralized mining. Bitcoin Gold is one of the first hard forks of the original cryptocurrency, which has attracted institutional and enterprise investors’ attention.
Therefore, while BTG has its merits and potential, one must carefully evaluate these factors and conduct thorough due diligence. Developers noted that they planned to shift from a board-based governance structure to a modern DAO-based model. Updates to the core items in their tech stack were underway, and updates to some of these items—like their explorers and ElectrumG, were being upgraded. BTG noted that while transaction volumes and fees at the moment don’t necessitate a layer-2 lightning network solution just yet, it’s on their radar.