How can I get Bitcoin Gold

Bitcoin Gold: cryptocurrency under the microscope

In addition to Bitcoin and Bitcoin Cash, there has been another crypto currency called Bitcoin since the beginning of November. What is meant is Bitcoin Gold, another spin-off of the world's largest crypto currency, in which more than 280 billion US $ are now invested.

Many investors are of course wondering why there is now another spin-off after Bitcoin Cash and what exactly is Bitcoin Gold (currency code: BTG)?

Why Bitcoin Gold?

Bitcoin Gold is an idea by Jack Liao. He is the head of the Hong Kong mining company LightningAsic. The company sells computer equipment (chips and graphics cards) that users can use to “mine” cryptocurrencies. With the help of the hardware, crypto currencies are virtually calculated by solving cryptographic computing tasks.

So the idea to start Bitcoin Gold is no coincidence, but also has a business background. Jack Liao not only wants to tackle the problem of centralized mining in Bitcoin, but also wants to boost the mining hardware business.

On the technical background of Bitcoin Gold: Chinese miners in particular are currently proficient in calculating Bitcoins and are responsible for over 70% of the market shares (AntPool, BTC.top, BTC.com, Bixin, ViaBTC, BTCC Pool). The Chinese mining pool Antpool, which is operated by the Chinese mining company BitMain, is responsible for around 17% of all blocks that are entered on the blockchain thanks to its ASIC miners.

What distinguishes Bitcoin Gold?

Bitcoin Gold is supposed to bring the mining of Bitcoins back into the hands of ordinary users, who have little chance of finding blocks against the large mining pools in China. The bottom line is that the entire mining industry should be decentralized again with Bitcoin Gold, according to Jack Liao's vision.

Bitcoin Gold achieves this by not mining the cryptocurrency with ASIC miners via SHA-256, but with another Proof of Work algorithm called Equihash - the same algorithm that the cryptocurrency Zcash uses.

This means: Bitcoin Gold can be "mined" with conventional graphics cards (AMD Radeon, nVidia GeForce etc.) with a conventional PC and is relatively ASIC-resistant. This means: It makes comparatively little sense to mine Bitcoin Gold with ASIC machines, which are mainly used in Bitcoin mining.

Bitcoin Gold vs. Bitcoin - What are the differences?

Otherwise, the number of coins that are later in circulation is also limited to Bitcoin Gold, as is the case with Bitcoin, to 21 million. As with classic Bitcoin, Bitcoin Gold usually generates a new block every 10 minutes. The block size is initially set to 1MB, but will later increase to 2 to 4MB.

The difficulty adjustment when mining the blocks takes place after each block, while with classic Bitcoin this takes place approx. Every 2 weeks. Like Bitcoin, Bitcoin Gold also supports the outsourcing of transaction signatures (SegWit) and, according to the developer, has its own replay protection. This means that no transaction can be repeated on the other blockchain.

Conclusion: Bitcoin Gold is only of interest to very speculative investors

Bitcoin Gold continues to be one of the top 10 cryptocurrencies with a market capitalization of 6 over US $ 4 billion. But so far the idea behind Bitcoin Gold has not really caught on, the rate of the digital currency fluctuates between 200 and 400 US $. Bitcoin Gold has a sonorous name, but when it comes to the topic of storage of value, many investors still rely on the classic Bitcoin, which is currently rushing from record high to record high.

Critics accuse the development team behind Bitcoin Gold of having mined Bitcoin Gold in advance, which means that fewer coins are later available for the other miners to mine. Even large crypto exchanges such as Coinbase do not initially want to support Bitcoin Gold (BTG), which tends to cast a negative light on the project. The bottom line is that Bitcoin Gold is even an even riskier investment than classic Bitcoin.

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