Bitcoin gold in 4 minutes
So Bitcoin Gold is out. It was released earlier today. Now that the hard fork is completed I want to clarify a lot of questions you may have. And I’ll do it in 5 minutes of reading time.
Here’s the table of contents:
- What is Bitcoin Gold?
- How do I get Bitcoin Gold?
- How much does it costs?
- How to mine Bitcoin Gold?
- Should I buy or sell Bitcoin Gold?
- Why do people say it’s a scam?
What is Bitcoin Gold?
It’s a new currency originated from a hard fork of the original Bitcoin code. It was created with 2 main goals:
- To implement ASIC resistant mining because they consider that big miners are abusing their position of power in the community from having too many resources. That’s why they changed the algorythm to a new one that only allows GPU mining. So that you can mine Bitcoin Gold with a Nvidia or AMD graphics card.
- To get a pre-mine reward of 8000 block which is about 100k BTG for the development team of 5 persons. This is a nice incentive to keep them motivated while developing the project.
It’s already available in exchanges like Coinomi and bitfinex. On November 1 it will be ready for mining on pools like pool.gold, minergate, serverpower, btgmine, nibiru, minertopia and miningspeed. Information extracted from btcgpu.org.
How much does it costs?
Right now it’s about 200$ dollars for bitcoin gold but the price is not yet consistant since the mining hasn’t started yet.
The starting price wasn’t clear but it seems that it started at 200 dollars. Which is normal since it’s a new currency and few people know how to use it on the few exchanges available.
How to mine Bitcoin Gold?
Use CCminer or claymore for mining when it’s launched. These are the most popular GPU miners for Nvidia and AMD graphics cards. Then go to a pool from the official list on the website btcgpu.org to start mining with your desired configuration.
It’s the same process than other mining systems, download the miner, set the configuration and launch the .bat file.
Should I buy or sell Bitcoin Gold?
That’s a complicated question because the price is determined by the supply and demand. The more people trust the project and invest their money into the currency, the more valuable it will be. Note that when the mining starts, more people will be trading BTG so the price should increase at November 1st.
Right now, I’d recommend you to wait and see how the price fluctuates. It may go up as Bitcoin Cash did. That’s why you should set a selling order with a high price to benefit the most if that happens.
Why do people say it’s a scam?
The fact that the project originated in about 1 month from nowhere had people worried about the truthfullness of it. Although they worked hard to get it done as soon as possible from the original Bitcoin github code.
The problem is that they will get a partial reward that they decided by themselves without much justification. They said that it will be used for the development of the coin and it will be distributed during 3 years. This mechanism is used by lots of Ethereum crytocurrencies to make sure the developers don’t run away with the money.
On one hand, there were lots of unaddressed questions like: what’s the initial price of the coin? Who is developing it? Why the main developer is anonymous? The normal questions that any startup gets when creating a product.
On the other hand, these questions are mostly solved because on the website btcgpu.org they released a roadmap paper where they try to solve most of them by clarifying how everything is planned. Go check it out if you still have doubts.
On the release day, they had problems with the website because of a DDoS attack where some users where making about 10 million request per second, which is too much to keep the site alive, so it went offline. Right now it’s not stable even though they have cloudflare to avoid this kind of scenarios.
Also they are using slack without a clear system to notify people about what they are doing so that we know how the development is going.
Because of the short time to develop the changes they want to implement, they were forced to create a bounty for 250 BTG to someone capable of implementing the replay protection system to avoid the double spending problem where people could replicate transactions from one blockchain to another. They are still implementing it even thought, the fork has already happened.
In short, the Bitcoin Gold project is a polemic solution implemented with small resources but a dedicated team that wants to improve the existing Bitcoin ecosystem with a more decentralized and fair solution to smaller miners.
We now have to wait for wallets to implement Bitcoin Gold in order to move it and use it on exchanges. If you liked this content, make sure to clap it and follow me for interesting Blockchain information.