4 Things You Must Know About Bitcoin Gold
Bitcoin - a digital alternative to traditional currencies, is the one of the most popular virtual currencies in the world of cryptocurrency. Many countries across the world are looking at legalising crypto currency and accepting it as one of the alternative payment mode. The Bitcoin market has been experiencing big gyrations lately. There have been significant developments in this digital currency networks.
In the eight-year history of Bitcoin, the original blockchain network underwent through a 'hard fork' for the first time. A hard fork occurs when a small fraction of Bitcoin miners split off onto their own blockchain network, spawning into separate network. Bitcoin has hard forked into two in August, when the digital currency officially forked creating Bitcoin Cash . Bitcoin gold was created when bitcoin forked again in October. And now the SegWit2x fork is looming.
Bitcoin Gold was announced in late August, which is an initiative of Jack Liao, CEO of Hong Kong based mining hardware producer, lightning ASIC, who's an outspoken critic of the state of bitcoin mining, first broached the idea of bitcoin gold back in July. This makes it imperative for everyone to be conversant with things you must know about this new bitcoin fork on the blockchain space:
The original Bitcoin is efficiently mined with specialized equipment known as ASIC (from the application-specific integrated circuit). This equipment is quite expensive, which leaves less room for average individuals who cannot spend much on cryptocurrency mining hardware. Thus, a "new" Bitcoin is created, which is more decentralized and available for average miners. Bitcoin Gold can compete only with Ethereum when it comes to miners’ demand, as the original Bitcoin will continue to be mined on ASICs.
Bitcoin Gold uses an algorithm that discourages the use of specialized mining hardware in an effort to make the currency more egalitarian
How To Claim Bitcoin Gold Safely?
Any bitcoins that a person holds in the bitcoin wallet at the time the fork occurs, will be granted an equal amount of Bitcoin Gold. This only applies, if a person has access to the private keys of the wallet, so no exchange wallets apply. Beware of poor quality sites, articles, and videos.
Bitcoin, Bitcoin Cash, & Bitcoin Gold
The two cryptocurrencies are fairly similar. Bitcoin gold aims to keep most properties of the original bitcoin. Bitcoin is also an example of a ‘airdropped’ digital currency, as it is one that will distribute new coins to any prior bitcoin owners who held the original cryptocurrency at the time of the split. These users will receive bitcoin gold up until the date the ledger of transactions started to differ between the two cryptocurrencies.
Each Bitcoin fork makes its own tweaks to the established formula. Bitcoin Cash increases the size of an individual block by eight times, which allows for faster transactions. Bitcoin Gold uses an algorithm that discourages the use of specialized mining hardware in an effort to make the currency more egalitarian.
In contrast to the other prominent Bitcoin forks, Bitcoin Gold is specifically designed from the beginning to inspire innovation in the Bitcoin ecosystem and give value to the vision of decentralization. Whereas the others were born from hostility and an ambition to dominate, Bitcoin Gold arises from a desire to protect Bitcoin and ensure that it not only maintains its position as the dominant cryptocurrency but continues to grow until its liberating roots stretch deep into the economic life of all nations.