Aspects and terms related to cryptocurrency can be a bit confusing. In the case of some, it may begin with the name itself. When it comes to cryptocurrency, what exactly is “crypto”? From there, things can get even more complicated. Cryptocurrencies rely on blockchain technology in the larger scheme of things. Again, there are several new concepts and terms to consider here. Unfortunately, there are far too many times when explanations are more confusing than they are helpful.
Fortunately, even a cryptocurrency and blockchain newbie can grasp these concepts. These elements can come together to create value, and Bitcoin Gold is the perfect example of how they can. A proper evaluation of Bitcoin Gold takes you from the beginning to the end of the cryptocurrency world.
What is Bitcoin Gold?
Bitcoin Gold represents a new digital cryptocurrency, similar to bitcoin, created to fix monopolization of mining by professional businesses using principle one CPU, one vote. Bitcoin Gold or BTG uses Equihash instead of bitcoin’s SHA256 algorithm and implements replay protection.
Bitcoin Gold chart is presented below:
The idea that cryptocurrencies can occur without centralization is the starting point of this journey. Bitcoin proved that this brilliant idea could work in the real world by establishing that it could work in the real world. Computer software was required to create the cryptocurrency units to implement this idea. Others, such as Bitcoin Gold, will pay individuals and groups to carry out this task for them. Mining is the term for this activity.
When you run this software on your computer, it solves a math problem. In cryptocurrency, “crypto” refers to the mathematics required to create blocks. Those who find a solution to the problem add it to the list of possible solutions. The blockchain is a digital ledger that records all transactions. Everyone with the address of this block (i.e., the cryptocurrency they formed) can send it to someone else who has solved the problem.
Due to the type of math used in Bitcoin, certain kinds of computers could do the math better than others. Furthermore, building such a computer became financially viable due to the high value of Bitcoin. As a result, Bitcoin’s blockchain was dominated by these “ASIC” machines.
Some saw this as centralized control of something that was always meant to be decentralized. They viewed this as a severe threat to the philosophical underpinnings of blockchain, one that required action. Instead of relying on specialized computers, they proposed changing the type of math needed. Bitcoin Gold was the answer to all of our problems.
Where to Get Bitcoin Gold?
To buy Bitcoin Gold, please visit any primary crypto exchange website such as Upbit, Binance, OKEx, Huobi Global. Furthermore, you can get Bitcoin Gold and start trading with just $100 at the famous broker Fxpro (BTC USD).
Bitcoin Gold can also be purchased on several exchanges. There is a lot of activity in this space as new exchanges are adding Bitcoin Gold to their platforms all the time. On the official Bitcoin Gold website, you can find a list of 19 different exchanges where Bitcoin Gold can be purchased.
They operate in a range of areas, but not all countries have them. Bitcoin Gold can be exchanged for national digital currencies, including the US dollar, while Bitcoin and Ethereum are the only currencies accepted.
With Fiat Currencies, you can purchase Bitcoin Gold.
Bitcoin Gold can only be purchased with fiat currencies on a limited number of exchanges. Bitcoin Gold can be purchased with USD on CEX.IO, one of the few exchanges that allow this. The only thing you need to do is if you already own Bitcoin, sign up for CEX.IO, confirm your account, and search for BTG/USD.
Additionally, YoBit and DSX accept Bitcoin Gold in exchange for fiat currencies.
As an alternative, AvaTrade offers Bitcoin Gold trading. Using a good option, the broker allows customers to buy cryptocurrencies quickly and easily.
Purchasing Bitcoin Gold with Cryptocurrencies
BTG/BTC or BTG/ETH are the two most common cryptocurrency pairings to purchase Bitcoin Gold coins. In addition to BTG/BTC, Binance has the most diverse selection of cryptocurrencies.
Open a Coinbase account if you already have one and don’t have any Bitcoins or Ethereum. While using a debit or credit card incurs higher interest charges, the buying is instantaneous.
Nobody agreed that the issue was so severe or that the current proposal was the best solution. People who owned machines designed to do “old math” and had a financial interest to continue things precisely the way they were were not surprised. Over this issue, there was a rift in the Bitcoin community.
There is a solution to this type of disagreement in the blockchain’s code structure. Solution: hard fork. It’s precisely what its name implies. In a hard fork, a new list of transactions is created by branching off the previous one. This new list begins with the change from Bitcoin to Bitcoin Gold, which occurred on October 24, 2017. As a result, bitcoin holders received an equivalent number of Bitcoin Gold to use on the new chain of exchanges.
As a result of this move, the “Bitcoin” brand was given a new lease on life. However, please remember that the overall amount of cryptocurrency units had doubled at the time of the hard fork. On the other hand, Bitcoin Gold does not have a double-digit increase in value since its market value was lower than Bitcoin. The new Bitcoin Gold bitcoin would quickly become worthless if no one supported it.
As a result of criticism of the transition’s handling, this was a possibility. Even the delay in releasing mining software to the cryptocurrency community appeared to be motivated by a desire for profit for Bitcoin Gold’s proponents. According to rumors, those with “insider” access could create Bitcoin Gold items without competition.
The cryptocurrency markets eventually recognized Bitcoin Gold as a separate currency. It may not be as valuable as Bitcoin, but it commands a good market price and is actively interested in creating new blockchain technologies, such as Lightning Network.
Bitcoin Gold Mining
Despite this, because Bitcoin Gold’s market price is so low compared to Bitcoin, it hasn’t attracted many miners. However, do not lose sight of the original intention of creating Bitcoin Gold, which was to prevent any form of concentration. There is now a way to participate in creating units of Bitcoin Gold without having to build a computer solely for that purpose.
As a result of the current and potential value, a certain level of specialized mining is recommended. However, do not forget that hashing is only one step in solving a math equation. Getting the answer before anyone else and successfully posting it to the blockchain is also essential. Miners compete with one another in a cooperative venture.
Experts in the field of mining advise against using a standard computer for this. Using a high-quality graphics card, they say, increases the odds of successful mining. Recall that mining is not accessible, even if you already own a computer and it’s not used for anything else. Costs associated with electricity are also a consideration. For mining Bitcoin Gold to pay off, it must be successful enough.
Additional memory and power supply checks are also recommended by mining enthusiasts, in addition to a graphics card. All of these components have technical aspects that are far beyond what this article can cover. But, as a result, they are easily accessible on the Internet, along with the necessary software for mining them.
It is possible to join a blockchain network, a partner to maintain the power that uses the computing effect of individual computers to mine Bitcoin Gold for those who are unwilling or unable to do so on their own. Members of the group share in the profits in proportion to their contributions, each is receiving a percentage of the profits. They have a range of technical needs.
Bitcoin Gold Wallets
To store Bitcoin Gold, you will need a wallet, regardless of just how you plan to acquire it. Cryptocurrency wallets, like anything else, are undergoing rapid change. The Bitcoin Gold website has a list of wallets that support the Bitcoin Gold blockchain. Each has its own set of advantages and disadvantages that make it unique.
What makes wallets different is whether they’re “hot” (software wallets) or “cold” (offline hardware wallets). A cold wallet, which is not connected to the Internet, is more secure than a hot wallet stored on a centralized server connected to the internet. Personal computers connected to the Internet and wallets stored on them are susceptible to attack.
Wallets are different from accounts on exchanges, so keep this in mind. As much as both can hold Bitcoin Gold or other cryptocurrencies, the accounts at exchanges are more susceptible to theft by hackers than those at banks. This is because they have a larger market. Therefore, in the opinion of all cryptocurrency experts, Bitcoin Gold and other cryptocurrencies need to be kept in their private wallets, either hot or cold, and should not be moved to exchange except for trading purposes.
BTG – Trading and Holding
As evidenced by the increasing number of exchanges that offer it, Bitcoin Gold is gaining in popularity. However, even by cryptocurrency standards, it is still a very young currency. To summarize, trading history may not be an accurate indicator of value due to these factors. Nevertheless, there is one relationship that stands out in particular.
Below is a chart from Blockchain.info that shows the US Canadian dollar of Bitcoin Gold (green line) and Bitcoin (blue line) (Yellow line). There is a difference between November 27, 2017, and December 31, 2017. (seen as the point where the blue market cap line is planned correctly).
Compared to bitcoin, the price of Bitcoin Gold has been considerably more volatile since this time. When evaluated in Bitcoin, the profit margin of Bitcoin Gold hasn’t changed much since the beginning of 2018.
As a result, the price of Bitcoin Gold moves in lockstep with the cost of Bitcoin itself. Thus, day traders, for example, will be frustrated if they hold Bitcoin as their medium of exchange if they want to trade Bitcoin Gold based on volatility (assets that are held until a favorable purchasing opportunity is identified and after the targeted asset is sold).
This is due to two factors. First, the price difference between Bitcoin and Bitcoin Gold is negligible (i.e., the yellow line is relatively flat). This limits the number of profitable trades that can be made. Any profits made from trading bitcoin gold could be lost due to volatility in the price of bitcoin.
Long-term investment in Bitcoin Gold is also problematic. According to the chart, the industry does not perceive a substantial difference between the two cryptocurrencies in terms of price. It would help if you also remembered that Bitcoin Gold has the same mission, vision, and values as Bitcoin. In short, the developers believe that they have adhered to these guidelines more carefully than Bitcoin does.
And as a crypto investment, Bitcoin Gold is virtually indistinguishable from Bitcoin. Separate blockchains and different analysis tools make a big difference between them. The market value of Bitcoin Gold may be affected by these technical issues.
To fully understand Bitcoin Gold and the investment opportunity it may represent, you must first grasp these core value propositions. If these factors increase market price, it is impossible to predict and even more challenging to determine if this price movement will be independent of Bitcoin’s price movement. In this view, Bitcoin Gold is a very similar investment to Bitcoin in this regard.
However, assuming that Bitcoin Gold and Bitcoin are interchangeable is the most fundamental mistake that can be made. Aside from the “first mover” advantage of bitcoin, this assumption fails to recognize that the Bitcoin community does not fully endorse Bitcoin Gold.
Bitcoin Gold’s technical issues may not matter in the long run, and the market price may continue to fluctuate with Bitcoin. In Bitcoin Gold’s development cycle, it’s simply too early to make a full assessment of the situation. On the other hand, Bitcoin Gold won’t be far behind if Bitcoin remains the most popular cryptocurrency.