The Bitcoin Gold, known as BTC or Bgold, hard fork change of the Bitcoin blockchain happened on October 25. Bgold shouldn’t be confused with BitGold, the gold investment and payments firm. It’s also not the previous hard fork, Bitcoin Cash (BCH/Bcash), which happened August 1, or the upcoming SegWit2x (S2X/Bizcoin) hard fork, coming in mid-November.
Why choose Bitcoin Gold?
Bitcoin Gold will modify Bitcoin’s proof-of-work algorithm from SHA-256, which is popular with mostly by Chinese ASIC miners, to the Equihash algorithm. Equihash is also used by zCash (Classic), Zencash, and Hush cryptocurrencies. Equihash is primarily mined by graphics cards (GPUs).
Returning Bitcoin mining to home users will supposedly increase decentralization. Russian and Japanese Bitcoin mining operations planned on a large-scale for 2018 are also working to solve the mining centralization issue.
Jack Liao, CEO of LightningASIC, a Hong Kong–based company that mines mostly Litecoin and produces cryptocurrency hardware is leading the Bgold initiative. LightningASIC produces a multi-GPU mining unit, of which it currently holds 913 units in stock and ifBgold succeeds in taking market share away from Bitcoin, LightningASIC will reap the benefits of mining new altcoin and selling miners for it.
Bcash and Segwit2x forks also have clear financial stakes in the effort.
Securely Claiming Bitcoin Gold
The bitcoins that were in your Bitcoin wallet when the fork happened transferred to Bitcoin Gold.But, this only applied if you had access to your wallet’s private keys, meaning exchange wallets did not apply.
Although the fork was October 25, Bgold exchanges opened for trading the week of November 1, to resolve any technical issues. It’s still a bit unclear how to split your bitcoin from bitcoin gold and exchanges and software/hardware wallets are still deciding on whether or not they’ll support this fork.
If you participated in the Bitcoin Cash split, the procedure will be similar but smoother, just remember to secure your bitcoin private keys because their value is higher than Bitcoin Gold.
Bcash is the best predictor of Bgold’s future price. Bgold is likely to see a far lower launch price than Bcash and with less support from miners, companies, and the “anti-Core community.”
Bgold is likely to initially trade at about 10 to 5 % of its value with a repeat of Bcash value patterns, but at lower price levels.
The Bgold development team seems to know what they are doing, with more active users on its GitHub repository and a more robust website.
Moreover, while Bcash has deliberately rejected Bitcoin’s SegWit upgrade, Bgold has embraced it and might even copy Bitcoin’s improvements, like Lightning Networks.
Bgold is likely to change its address formatting as well, to prevent the accidental sending of BTC to fork-coin addresses.
Moreover, Bcash’s Emergent Difficulty Algorithm (EDA) has created unpredictable block times that are too slow or too fast. Bgold’s per-block adjustment will likely encounter difficulties.
These are some of the reasons why Bgold might have a better chance at long-term sustainability than Bcash and Bgold may absorb some of Bcash’s value.
Bgold was first announced as an ICO, and seems that the BTG plan has been revised several times.
It’s unclear whether LightningASIC and its partners will be mining BTG between the fork and exchange listing dates, since this might alert people to scamming.
Another potential problem is that Bgold and SegWit2x don’t have replay protection. Unless this feature is added, a user might accidently send BTC instead of BTG.
Another reason to avoid Bgold is that it’s not really needed Were BTG to launch as anEquihash coin without the benefit of Bitcoin’s name and transactional history, it wouldn’t be noticed. But Bgold is interesting because it may be freely distributed to Bitcoin holders. Holding a small percentage of Bgold in the long term is likely best.