What is bitcoin gold?

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Cryptocurrency forks occur quite regularly, and to this day. Bitcoin has been able to survive several iterations and ramifications. The biggest and most sensational bitcoin fork occurred at the end of 2017.

Bitcoin Gold was released at the end of October 2017 as a result of the hard fork of the original open source code of the cryptocurrency. Hard forks occur for several reasons, including in order to reach a large audience and expand the customer base, or because of a community conflict and different goals. The goal of the new cryptocurrency was "to make the coin decentralized again".

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At first glance, the idea of "making BTC decentralized again" may seem counterintuitive. Bitcoin, like altcoins, was presented from the very beginning as a decentralized digital currency. Cryptocurrency is not associated with central banks, a country or government agencies.

But, the most important problem of bitcoin, which prompted the creation of Bitcoin Gold, is absolutely unrelated to the issue of central issue. Most likely, it was related to mining. The creators of bitcoin gold thought that the new mining algorithm (proof-of-work called Equihash), a new branch of the world's most popular cryptocurrency by market capitalization, would not disproportionately favor large mining operations.

Democratization of the mining process

Mining bitcoin is a rather resource-intensive process. The more equipment, the greater the profit from mining. Many miners combine a large number of farms, each of which requires expensive special equipment.

Those who are trying to mine independently from home should have enough money for equipment and a lot of free time. If one of the components is missing, they do not succeed. Since home computers cannot compete with professional equipment.

The essence of the new bitcoin gold mining algorithm is that it will mine the cryptocurrency itself, which means that the mining process cannot be started faster on specialized equipment than on standard computer systems.

BTG was not the first major bitcoin hard fork. Bitcoin Cash separated from the main cryptocurrency in August 2017.

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Bitcoin gold — Distribution, Protection, Transparency

The developers of Bitcoin Gold were focused not only on the decentralization of BTC, but also on its protection and transparency. Thus, the hard blockchain of the first cryptocurrency fairly and efficiently distributes the new digital asset immediately to people around the world who are interested in cryptocurrencies.

Bitcoin gold is designed so that its users do not worry about the transparency of the blockchain and secure the information that the blockchain provides as much as possible. Additional protective measures were taken.

The fact that Bitcoin Gold – this «A free, open source software project created by volunteer developers and supported by a rapidly growing community of cryptocurrency enthusiasts that stretches around the world», also attracts potential customers.

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For all cryptocurrencies, one of the main factors determining both short-term and long-term success is their availability on cryptocurrency exchanges. Users must have access to cryptocurrency on trading platforms in order to make transactions.

As reported on the website bitcoingold.org as of April 2021, the cryptocurrency was traded on Bithumb, exchanges, Binance, HitBTC, BitBay and many others.

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Bitcoin Gold is also available through a number of wallets, including Trezor Wallet, Ledger Wallet, Exodus, Coinomi, Bitpie, Guarda, Freewallet, BTGWallet and Kasse. According to the website, as of April 2021, the "golden crypt" was quoted on 40 exchanges in 11 currencies.

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The Future of Cryptocurrency

In the long term, Bitcoin Gold will conduct research on smart contracts and blockchain democracy, as well as develop a decentralized fiat-crypto brokerage network.

BTG developers are aware of the connections between this cryptocurrency, its parent bitcoin, and the wider world of digital currencies. As such, they indicate that "a number of improvements, we are working on increasing interest in the broader Bitcoin and crypto worlds, not just on BTG." They said that some improvements may include scalable ways to solve the hard fork, "smart voting mechanisms" and decentralized decision-making for the development of digital currency.

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