Why Was Bitcoin Gold Invented?

bitcoin-3d-illustration

When Bitcoin Gold was released, Bitcoin was already in existence. The main objective, however, was to make use of the current blockchain while bringing about complete anonymity and speeding up transaction times by reducing block size. The proponents believed that Bitcoin was unfairly biassed in favour of large miners. It was more comparable to giving little, petty miners without expensive mining equipment just the short end of the stick. This was seen as doing the democratic access that the blockchain movement was built on a disservice.

Similar to Bitcoin, Bitcoin Gold functions as a medium of exchange and a platform for the development, study, and exchange of cryptocurrencies. It also accomplishes the following:

to cover the cost of goods and services
As a financial instrument available on markets for digital assets
as a facilitator of autonomous payment systems similar to other cryptocurrencies.

What is Bitcoin Gold & How Does it Work?

Bitcoin Gold (BTG) was launched in 2018, and it aimed to make up for the limitations of Bitcoin, which provided a platform for its introduction. In effect, Bitcoin Gold is a hard fork of Bitcoin, meaning that it was created by spinning off some existing blocks of the Bitcoin blockchain for independent governance. It has ceased all links to the Bitcoin blockchain since then, assembling its team of developers that has grown to over 20 members at present.

By offering faster processing speeds than Bitcoin and introducing complete anonymity, it has fulfilled some of its promises. Six co-founders made up the development team of Bitcoin Gold, led by Hang Yin, who used open-source technology to create the blockchain. Internet connectivity is necessary to send or receive BTG and to access it.

Since it is virtual money, its use is not constrained by bank restrictions or the monetary policies of the Federal Reserve or Central Bank. The Board and the community members have full authority over the blockchain.

How Does Bitcoin Gold Work and What Technology Is Behind It?

The Equihash proof-of-work algorithm, which connects block production to the amount of memory available for storage, powers the Bitcoin Gold ecosystem. ASIC processors were in fact already at a disadvantage with Bitcoin Gold since periodic bespoke modifications will be needed to keep up with algorithm improvements.

In layman’s words, the machine might not have produced the required ROI before it becomes outdated and unusable. The blockchain and its reward structure are expected to continue to be democratic and decentralised because smallholder hardware miners are expected to be the large winners.

The Bitcoin blockchain is a community initiative since it is mostly open-source and technology-driven, allowing for transparency and decentralisation. Its anonymity is comparable to Monero when compared to other cryptocurrencies. It’s distinct from Ethereum and Bitcoin, both of which are known to make transaction information available through their respective explorers. This serves as the starting point for Bitcoin Gold, which conceals actual wallet addresses.

Is Bitcoin Gold Real Money?

With its blockchain, Bitcoin Gold provides a fair platform for many individuals all over the world, enabling payments and serving as a tool for value transfer. In comparison to fiat currency, BTG checks some boxes, however it is digital and not actually exchangeable.

BTG will undoubtedly fall short of the definition of legal tender, but this is not a bad thing. While BTG, like most digital cryptocurrencies, lacks institutional support proclaiming them to be national or international currencies on a daily basis, market realities have given them respect and worth. As a result, BTG is now approved for account settlement and payment of products and services in over 100 countries. As a result, it fulfils all the requirements and goals of actual money.

Fees & Expenses

BTG levies a 0.5% mining fee on all network transactions. Many individuals view this rate as practically insignificant, especially if your transaction has a substantial value. Expect some additional costs when purchasing the coin from brokers or exchanges in addition to the network charge. The costs you pay here will primarily depend on the mode of payment you choose. While wire transfers can cost between 0.25 and 0.5%, credit card payments often vary from 3 to 7%. Investors who prefer bank transfers will incur varying fees because payments made internationally are more expensive than those made inside the same nation. These costs are negligible and hardly perceptible taken together.

What Are the Benefits of Bitcoin Gold?

With a few exceptions, Bitcoin Gold and Bitcoin are very similar. The main advantages are as follows:

Fungibility: 1 BTG is always equivalent to 1 BTG. BTG is fungible, interchangeable, and convertible as a digital currency.

It uses a consensus algorithm, which renders it decentralised and community-driven.

Speedier Transactions – Thanks to its improved design, it allows for faster transactions. In contrast to Bitcoin, which is estimated to create 5 transactions per second, Bitcoin Gold is said to produce up to 27 TPS.

Similar to Monero, it uses full transaction anonymity to hide the sender and receiver’s wallet addresses from the network.

Can Bitcoin Gold Be Used Anonymously?

BTG provides transaction privacy. However, if you purchase BTG over a regulated network, the platform will be able to determine when and how much BTG you bought. In a similar vein, if you decide to purchase Bitcoin Gold from any public exchange, only the person who sent the BTG to you will know what you received. With the exception of the aforementioned situations, anyone using BTG cannot determine whether you sold your shares or transferred them to another party. The wallet identities of the parties to a transaction are concealed by encryption and representation symbols, and are not displayed by the internal explorer. The ultimate delivery of a BTG sent by one party to another does not include the sender’s wallet information, nor does it

How Safe Is Bitcoin Gold?

It can be seen as being as secure as cryptocurrencies ought to be. This results from the transmission of wallet addresses and transaction data using encryption techniques. Platform safety is also increased by network upgrades and algorithmic violations. That being said, personal security is crucial since hackers can compromise your wallet if it is stored on a PC by infecting it with malware using a variety of techniques. Even though this risk is not specific to BTG, it is crucial that the user always takes precautions. Antivirus software can and should be installed. Avoid using shared computers when accessing your crypto wallet, and try to keep your coins away from exchange wallets unless absolutely necessary.

What Teams Are Working On Bitcoin Gold Development

Currently, Jack Liao leads a team of developers that includes more than 20 active developers from throughout the world. The team also includes the co-founders, who alternately lead the Board of Directors. They collaborate with other tech professionals who are making their mark in the cryptocurrency industry.

Lightning Network

Over the past two years, Lightning Network has worked to increase the scalability and usability of Bitcoin. For a few retailers, the newly launched LN apps have significantly improved Bitcoin access and transaction speed. Because Bitcoin Gold’s underlying technology and that of Bitcoin are so similar, Bitcoin Gold will gain from any subsequent advancements made to the Lightning Network.

Which Financial Institutions Are Invested in Bitcoin Gold?

As of yet, no significant financial institution has been found to have Bitcoin Gold. Despite this, there is a sizable market for cryptocurrencies, with a $266 billion market worth altogether. And BTG Trading, with a market cap of $159 million as of this writing, generates a daily turnover of approximately $36 million. The prospect for BTG trading globally is expanding due to the daily arrival of new trading platforms into the cryptocurrency industry. Currently, there are over 22,000 trading places for digital coins, and these offer a promising future for investors.

Bitcoin Gold Mining

The Equihash Proof of Work method, which is used by Bitcoin Gold, was created to connect output capability to storage or memory capacity. In order to protect the network, PoW has a history of placing some burden on miners. Miners must use their processing power to come up with a solution that meets the necessary mathematical complexity. In order to prevent intelligent mining devices from outweighing the interests of the community, Equihash starts with RAM size.

Even though a few ASICs may have developed with custom RAM, mining BTG with them becomes nonsensical due to upgrades. Economic considerations are behind this position. An ASIC will need to be retrofitted if it is purchased for $5,000 and an upgrade renders its custom memory invalid before the owner can use that money. These machines will become too expensive to adapt if further money is spent to make the ASIC comply with new regulations.

When it comes to limiting the excesses of commercial block miners, which endanger the democratisation and decentralisation of the blockchain ecosystem, BTG appears to have the solution.

Bitcoin Gold Wallet

The necessary storage for all Bitcoin Gold tokens is the Bitcoin Gold wallet. They come in various varieties:

BTG Atomic – Desktop

Mobile wallet Exodus

Web-based wallet called Freewallet

Web/mobile wallet Guarda

Mobile wallet by Amon Tech

Hardware wallets are frequently advised for security. The top choices here are Trezor and Ledger Nano S.

Is Bitcoin Gold Worth the Investment?

The primary motivation behind any investment is to increase one’s wealth, and many observers have noted this as a factor in Bitcoin Gold’s success. Although the project may not have experienced many significant developments in 2019, the price gains and volatility it experiences in tandem with other cryptocurrencies are frequently mentioned as a source of interest.

It’s crucial to remember that there are no promises about profits and that all investments involve risk. It is crucial for investors to focus on the specifics of an investment because doing so will help you make better choices. In addition, knowing the best storage alternatives is important for investors who intend to purchase and hold their BTG.

Not every digital coin is necessarily compatible with every wallet. With so many alternatives to choose from and the correct storage for BTG available, finding the ideal match will be easy with the knowledge offered here.