Bitcoin Gold is a cryptocurrency that was launched on November 12, 2017, after a hard fork of Bitcoin. The fork happened when Bitcoin block 491407 was mined and it resulted in a new blockchain splitting from the original Bitcoin blockchain. Because of this, the new currency has the same history and is based on the same system as Bitcoin. However, from that date, they are separate and will develop differently with their own features and prices. The Bitcoin Gold fork can be compared to the hard fork that created Bitcoin Cash in August 2017.
The goal with Bitcoin Gold is to make Bitcoin more decentralized and democratic by adjusting the process used to mine new blocks. Bitcoin mining has lately become very difficult and expensive which means that only major companies and organizations can afford to buy the hardware needed to create Bitcoin. This situation creates a conflict since the idea behind Bitcoin is that it’s a currency that anyone can create. Because of this, the founders of Bitcoin Gold want to make the mining process easier and more “democratic” again.
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What we like about Bitcoin Gold
- It is easy to mine even for private users.
- It is based on Bitcoin which means that it has some of the best safety features in the industry.
- It is still very new and will hopefully offer great investment opportunities in the future.
- Bitcoin Gold is easy to purchase and available on multiple exchanges and wallets.
The Differences Between Bitcoin and Bitcoin Gold
By changing the algorithm used to create new blocks, the developers behind Bitcoin Gold have made it possible for everyday people to mine new blocks. Instead of using expensive and energy wasting ASIC hardware, you can mine Bitcoin Gold using the GPU (graphic card) on your computer. When Bitcoin was first launched GPUs could be used to mine it. However, since then the system and blockchain have been updated several times making it impossible to mine with GPUs.
You could say that Bitcoin Gold has given back the control over the cryptocurrency to the individuals that use it. Bitcoin Gold’s slogan is “Make Bitcoin Decentralized Again.”
It is important for you to understand that Bitcoin Gold is not competing with Bitcoin since they now run on two separate blockchains with different algorithms. Unlike Bitcoin Cash (BCH) which will always be a competitor to Bitcoin because their value is based on the same blockchain and the same hardware is used to mine them.
How You Buy Bitcoin Gold
There are three ways to get your hands on Bitcoin Gold.
Automatically – When Bitcoin Gold was created everyone that owned Bitcoins received the new cryptocurrency at a 1:1 ratio. That means that if you owned Bitcoins on November 12 you also own the same amount of Bitcoin Gold. If you had 50 Bitcoins you now have 50 Bitcoin Golds. The issue with this is that many wallets that supported Bitcoin didn’t support Bitcoin Gold, therefore users had to download their Bitcoin Gold keys and manually transfer them to a different wallet.
Mining – We already mentioned that the idea behind Bitcoin Gold was to simplify the mining process which naturally means that you can mine your own coins. If you plan to mine Bitcoin Gold you can either do it alone or in public mining pools. A pool is a collection of users that mine cryptocurrencies together, splitting both expenses and earnings.
Buy Bitcoin Gold – You can also buy Bitcoin Gold from a broker, exchange or wallet in the same way you would buy any other cryptocurrency. Many of the industry’s leading services offer Bitcoin Gold and you can find a complete list of available services on the official Bitcoin Gold website.
Just like all other cryptocurrencies, Bitcoin Gold can be used to exchange products and services online.
Is Bitcoin Gold a Scam?
No, Bitcoin Gold is not a scam. However, we have heard stories about how people have tried to lure others into giving them money for Bitcoin Gold before the currency was ever launched. Because of this, it is very important that you only use reliable services to invest in cryptocurrencies.
Also, when the currency was first launched there was a big confusion since it happened at the same time as another planned hard fork was canceled. As a result, many initially thought that Bitcoin Gold was the result of the canceled fork.