If you are familiar with the Crypto world then you must be already aware of the recent buzz of Bitcoin Fork. This is the 2nd fork of Bitcoin within 9 weeks.
The first fork of Bitcoin which took place on August 1st 2017, created Bitcoin Cash(BCH). You can get more details about Bitcoin Cash with these guides:
Now, another Bitcoin Fork is going to take place on 25 October 2017, which will create Bitcoin Gold(BTG). With this fork, you can double your existing Bitcoins without doing anything.
Shocked! Don’t be.
If you are new to this Fork scenario, then you need to have a close look at this article as you are missing something huge. People are going crazy for Bitcoin gold and its searches on Google are increasing readily. See this picture from google trends.
You might be having a lot of questions about this fork so, here we will be having a close look at the Benefits of Bitcoin Fork, its technology and how you can get your BTC doubled.
Remember, Doubling of Bitcoin does not mean that the number of Bitcoins you own will get doubled. However, You will get the equal number of Bitcoin Gold whose value depends upon the market sentiments.
Now, Let’s get into nitty gritty…
What is Bitcoin Gold(BTG)?
Bitcoin Gold is (would be) a new cryptocurrency which is denoted by ‘BTG’. It will be created by the hard fork of original ‘Bitcoin’ created back in 2008 by Satoshi Nakamoto.
Bitcoin Gold will solve the same purpose as the original Bitcoin did, it just has a different way of mining.
Why is this Bitcoin Fork Happening?
If you are the one who is indulged in Bitcoin mining, then you would be familiar that how difficult it has become to mine Bitcoin theseday or we can say it has been monopolized by a few big players in the market.
The use of ASICS miners has made almost impossible for GPU miners like you and me to mine Bitcoins.
So, a group of developers decided to make Bitcoin Mining decentralized by hard forking the existing BTC i.e. creating a new bitcoin using another algorithm.
Who is behind this Bitcoin Hard Fork?
A team of extremely talent Developers, miners headed by Jack Liao, the CEO of the LightningAsic, a Hong Kong based mining equipment manufacturing company.
The team also includes an anonymous lead developer of Bitcoin Gold who is named as h4x3rotab.
“Their vision is to make Bitcoin Decentralized again”.
What will happen in the Hard Fork?
Bitcoin Gold(BTG) developers have found a way to make mining decentralized by changing the protocol of bitcoin.
Since Asics mining is the real issue, BTG will run on a different mining algorithm which is resistant to ASIC chips i.e. Equihash.
Currently, Bitcoin uses SHA-256 mining algorithm which renders the use of CPUs and GPUs however, Bitcoin Gold is easily mineable with GPUs.
When will the Hard fork take place?
As per the BTG team, the Hard Fork will take place on 25th October 2017.
However, This does not mean that the new coins will be released on that day. The Bitcoin Blockchain gets freeze for that and new BTG block will be built on the top of it.
— Bitcoin Gold [BTG] (@bitcoingold) September 29, 2017
What are the other reasons for Bitcoin Gold?
As per BTG tweet, they want to give the power of mining to the normal users who can mine BTG using their regular computer hardware.
Also, there has been news that Ethereum will move to POS(Proof-of-Stake) from POW(Proof-of-Work) in 2018. So, this would attract ETH miners to start mining BTG.
I think that’s a great to make Bitcoin decentralized by giving the power of mining to a common man.
How is BTG different from BTC?
|Bitcoin (BTC)||Bitcoin Gold (BTG)|
|Uses SHA-256 Algorithm||Uses Equihash Algorithm|
|Mineable with ASIC Chips||Minable with GPU|
|Mining Difficulty Increases||Mining Difficulty varies as per block|
Inspite of these changes the basic structure of BTG like Block size, replay protection will remain same.
How Can I double my Bitcoins?
Doubling your Bitcoins is pretty simple, you just need to store your Bitcoins in a wallet where you own the Private Keys.
However, there are chances that you will get an equal amount of BTG even if you store your BTC on a web wallet(Exchanges). People who have stored their BTC in web wallets, receive an equal amount of BCH in the last Bitcoin Fork.
I would recommend you to store your BTC in a wallet where you own the private keys, just for security reason.
Things to Keep in mind during the Bitcoin Fork?
I’m not going to scare you but there are a few things that we should keep in mind during the fork so as to keep our beloved BTC safe and secure.
Replay Attacks – There is a very low probability of Replay attacks where a valid data transmission is maliciously or fraudulently repeated or delayed.
Though Bitcoin Gold team claims that their network has Replay Attack protection but still we should take precaution at our end as well.
- Avoid Bitcoin Transactions near 25th October 2017 to stay away from any replay attacks.
Own the Private Keys
- Store your Bitcoins on a wallet where you own the private keys, not on any exchange like Polo or Coinbase.
Use Bitcoin Wallets
- I would recommend you to use a Hardware wallet like Ledger Nano S or Trezor because here you own the private keys. Also, during the last BTC fork these two wallets were the first one to support BCH.
- You can also go with Free Mobile Wallets like Coinomi, Jaxx or Exodus(Desktop only).
- You can also go with a Paper Wallet or a Brain Wallet.
Moreover, Once the fork is over you need to wait a bit to get the instruction by the respective BTC wallets, on how to claim your Bitcoin Gold.
Should You Invest in BTG?
A lot of people are converting their altcoin to Bitcoin in order to get BTG, hence the price of BTC is going bullish. But once people get BTG, they will be selling it and the price of BTG will most probably go down. This is just what I think, so you need to take your call accordingly.
However, I’m skeptical about the future of BTG as the head of this project(BTG) owns a huge ASIC mining equipment company, still he wants to see a future of GPU’s. This is something that I was not able to figure out.
Also, There are no official wallets or exchanges to store or trade Bitcoin Gold which will be a huge headache for all the BTG investors.
Moreover, The future of BTG depends upon the vision of the development team and how GPU miners respond to it.
So, This is for today, Stay Tuned Coinscage.com as I will bring more information like Bitcoin Gold Exchanges and Wallets to store your BTG.
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