Complete Bitcoin Gold Guide

/Complete Bitcoin Gold Guide

Bitcoin Gold, the hard fork allowing GPU owners to compete with ASIC miners equitably.

Complete Bitcoin Gold Guide 2018-05-04T08:52:10+00:00
Complete Bitcoin Gold Guide

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  1. What is Bitcoin Gold?
  2. Difference Between BTG and BTC
  3. Bitcoin Gold Price Growth
  4. Bitcoin Gold Wallet
  5. Bitcoin Gold Mining
  6. Buy Bitcoin Gold

What is Bitcoin Gold (BTG)?

The Bitcoin Gold coin was developed by bitcoin (BTC) supporters to try and alleviate the pressure and congestion on the bitcoin network. Here is all you need to know about this coin.

  • It was created in August 2017 as a bitcoin fork and is still based on the blockchain technology.
  • It has retained the original bitcoin transaction history meaning that you get to have an equal amount of BTG as the bitcoins you had before the fork.
  • The coin seeks to get back the original decentralization idea that bitcoin had. Bitcoin network has become highly centralized with the use of specialized equipment to mine the coin
  • It was a Bitcoin gold fork of the original bitcoin at block 491,407 of the original Bitcoin.
  • Instead of the bitcoin Proof of Work (PoW), BTG uses a different version called Equihash. This algorithm cannot be manipulated by specialized hardware.
  • Equihash is constrained by memory and not by computing power as PoW hence no need to use the Application Specific Integrated Circuit (ASICs) machines.
  • The aim is to reduce the dominance of the mining farms that have diluted the idea of decentralization.

Advantages

  • Brings back the democracy that BTC was to have initially.
  • Reduces the need to consume a lot of energy

Cons

  • People complain that the developers took undue advantage since they operated the network privately for some time.
  • Users are skeptical of having several versions of BTC as it might confuse the public

Difference Between BTG and BTC

BTG is basically a version of BTC with little variations. It is a hard fork of BTC, seeking to bring back decentralization in the crypto world.  Here are some of those variations.

  • While BTC uses PoW algorithm, BTG uses Equihash
  • BTC miners use ASICs while mining BTG only requires Graphical Processing Unit (GPU)-based hardware.
  • BTG is more decentralized than BTC
  • BTG level of difficulty adjusts after every block found while that of BTG adjusts after a set time.

Bitcoin Gold Price Growth

Currently, the Bitcoin Gold is ranked as the 19th highest valued crypto. Its total circulating value is 16.8 million coins, and only 21 million coins can be mined. Like many other digital coins, BTG price has been fluctuating since its development. As of November 2017, the market cap for this coin was about $5.7 billion.

Initially, the price of BTG tokens was inflated selling at around $2,900 on October 11, 2017, in Bitfinex. This price dropped 96.64% to about $97 in a matter of a few hours before settling at about $250. BTG has been going down and is set to continue decreasing in the course of the year (2018). It might not be a good idea to buy bitcoin gold at the moment hoping to cash on it later in the year.

Bitcoin Gold Mining

Satoshi’s original idea was to create a decentralized digital currency that could be used for peer-to-peer transactions. Anyone with a computer would be able to mine BTC and use them to pay for good and services online. This has since changed as some individuals began developing supercomputers to mine BTC rendering individual computers useless. The concentration of ASIC miners in a few regions where electricity cost is low has given a few people undue advantage diluting the decentralization idea.

BTG hope is to bring back this decentralization. BTG developers have adopted a different scheme of work from the PoW framework. They have opted to use a new algorithm called Equihash that does not require the expensive miners. Instead of miners solving mathematical problems that are confirmed through a PoW scheme, the BTG network instead uses Equihash.

Miners begin working on the next block once the previous one is verified and added on to the blockchain. There is no set time as is in BTC. Reward per block is 12.5 BTG , just like BTC

A simple step by step process of mining BTG

  • Get the right hardware. Ideally, GPU machines would be sufficient.
  • Download the software you will require to connect to the network
  • Identify the ideal wallet such as Coinomi, Guarda Wallet, and Free Wallet
  • Identify a reliable mining pool. It is easier than to do it alone.
  • Run the .bat file if you are using windows to start mining. On Linux, you’ll run the .sh file
  • Identify an exchange that supports BTG to sell your coins once you reap the rewards

Bitcoin Gold Wallet

Once you have your BTG , you will need to have a wallet in which to store your coins. Here are some wallets that support BTG .

Trezor >>

  • Trezor is a cryptocurrency hardware wallet. It allows you to store your coins offline.
  • It is considered as one of the best cold storage wallets.
  • Provides great flexibility and connectivity.
  • Once you have your BTG , you simply transfer them to your wallet using USB connection.
  • Well designed and easy to use interface.

The only drawback of using a hardware wallet is the inconveniencing if you want quick trading as you need to always have your device physically

Ledger Nano S >>

  • A hardware wallet that supports BTG
  • Compatible with multiple operating system
  • Excellent safety features
  • Buttons used to control operations

Exodus >>

  • Exodus is a desktop wallet that supports BTG.
  • It has a built-in exchange that allows you to trade between the supported coins (ShapeShift).
  • You do not have to download the entire wallet into your computer.
  • Charges a transaction fee per every payment confirmed.
  • Never stores your keys on the servers.
  • Protected by a 12-word pass phrase.

Cons

  • Partially open source.
  • Not as safe as hardware wallets.
  • Does not have two-factor authentication.

Freewallet’s BTG Wallet

  • This a desktop wallet that comes ready to use.
  • They have a variety of digital coin wallets including BTG.
  • Compatible with iOS and Android devices.

Cons

  • Complaints about stolen digital cash on crypto forums like bitcoin talk.
  • The company keeps your private keys.
  • You may want to take cation with this wallet considering the negative reviews.

Coinomi >>

  • This is a multi-crypto coin wallet.
  • Its only compatible with Android devices.
  • You have full control of your private keys.
  • Helps you hide your IP address making transactions anonymous.
  • Easy to exchange one coin for another.

Cons

  • The only downside is that it is a mobile wallet. It can be hacked since its online.

Buy Bitcoin Gold

Apart from mining BTG, you can opt to buy from Bitcoin Gold Exchanges. Here are some exchanges that currently support this cryptocurrency.

Binance >>

Binance is among the most popular exchanges where you can trade a variety of coins. Binance is a crypto exchange only based in Hong Kong, but accepts users from multiple countries. It has a high liquidity, so you can easily sell and buy digital coins using Ether or BTC. You cannot use fiat currency Buying BTG is pretty easy from this exchange.

  • Create a Binance account. You only need your email.
  • Activate your account.
  • Log in to your account and set up the 2-factor authentication.
  • Transfer some BTC or Ether coins to your account since you’ll need those coins to buy BTG.
  • Once you’ve bought Ether of BTC, check the BTG/ETH or BTG/BTC and place your order.

Changelly >>

This exchange was developed in 2015. You can exchange various coins within this platform. It has a very nice and friendly user interface in which you can buy digital coins with debit or credit cards. However, this comes at a high cost. Other transactions are charged just 0.5% of the amount transacted, but fiat currency trades can be very expensive. Here is how to buy BTG from this exchange

  • Open an account with Changelly.
  • Fund the account with BTC or USD.
  • Then select the coin you want to buy in this case BTG and the amount you wish to spend.
  • Confirm the amount you are going to receive.
  • If you are content with the terms, place the order. Your wallet will be credited with the amount you have bought.

Cex.io >>

Cex.io exchange is based in London and started in 2013. It was primarily a BTC exchange platform. It has since stopped the cloud mining services and now operates as purely an exchange site. You can use debit or credit cards, other coins as well as fiat currency to trade. You can do a SEPA or wire transfer to fund your account. If you want to buy BTG from Changelly, here is the process.

  • Register an account and get it verified.
  • Fund it with either BTC of fiat currency. (USD, EUR and GBP).
  • Find the right pair and place a trade.
  • Provide your wallet address to receive your coins

Gate.io >>

This exchange is managed by Gate Technology Inc, based in Virginia, USA. It does not have the New York Bitlicense. It offers trading for more than 20 digital coins and is available in both English and Chinese languages. There is no margin trading option and does not support fiat currency. You can only trade the digital coins against themselves. The site charges 0.2% for all the trades. If you want to buy BTG, here are the simple steps to follow

  • Sign up an account from the official website
  • Once you’ve set up and verified your account, fund it with BTC from your wallet.
  • Once confirmed, place an order of BTC/BTG, and then wait for your coins in your wallet.

To Conclude

The cryptocurrency marketing is flooding with so many altcoins. For instance, BTG is now the second popular version of the original BTC after BCH. If this continues, investing in this market will continue being risky. Make sure you always analyze the market thoroughly before making a decision to speculate on any coin.

As always, we’re grateful you’ve taken your time to go through our publication. Check out our site for more.

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