To talk about cryptocurrencies is to talk about Bitcoin, the oldest virtual currency, effective since 2009, is the world of virtual currencies. Now we talk about Bitcoin Gold, which is a free open source software project, which was developed by volunteers with the support of a rapidly growing community of Bitcoin enthusiasts that is spreading throughout the world and becomes a Attractive to potential customers.
What is Bitcoin Gold?
Specifically, Bitcoin Gold is a free code cryptocurrency project developed by Bitcoin enthusiastic volunteers. It appeared for the first time on October 23, 2017 and later officially, it was launched on November 12 of the same year 2017. It is also known as the fork of the Bitcoin blockchain. This fork creates a new branch of the Bitcoin blockchain, which contains the same Bitcoin transaction references until such time as the separation occurs, this gives rise to a new cryptocurrency, Bitcoin Gold.
The difference between Bitcoin and Bitcoin Gold
Bitcoin Gold has characteristics very similar to Bitcoin, since both have equal time for processing transactions, which are 10 minutes, that is, that is the time it takes to confirm a transaction, once the transfer of Cryptocurrencies, and likewise, both also have a basic supply of 21 million coins, which means that they will never be more than that amount of BTG coins in circulation. However, there is a very important difference that is the following.
A new mining algorithm
And while Bitcoin has the SHA-256 algorithm for the extraction of new blocks and transactions, Bitcoin Gold uses the Equihash algorithm. Both algorithms are proof of work, that is, they require the miner to solve a kind of difficult cryptographic puzzle for the extraction of a block. While those who do Bitcoin mining have a slight advantage when using expensive and specific equipment called ASICS, in the case of Bitcoin Gold it does not have that advantage. With Bitcoin Gold any user with using common equipment can extract, providing an equal opportunity environment more in line with the vision of the creator Nakamoto, who said, a cpu, a vote.
The future of Bitcoin is unpredictable, no one can abrogate exactly, what will happen with this currency in the coming years. Bitcoin has a similarity today to the future of digital gold, than to gold itself. The risks become very high and their future is not predictable. Approximately approaching Bitcoin, which is a currency that is based on decentralized software on an encrypted basis, requires an analysis in two well-differentiated planes.
First, understand the possibilities of encryption technology called Blockchain, which allows direct exchange from person to person, without the need for third parties, which is something truly revolutionary for the internet world that is dominated today by the great intermediaries. And in the background, and equally important, it is necessary to understand the main foundations of monetary theory and what properties the money should bring together, in order to fulfill its function of unit of account and deposit of value.
Blockchain technology gives us a viable alternative for the future that could solve the historical problem of money, taking advantage of the advantages of the digital world. Bitcoin for its unique properties, is in the closest thing to becoming digital gold, which is a new form of money not manipulable in its offer by politicians or central banks, and therefore, is able to safeguard the purchasing power of savings. Likewise, it is also capable of supporting an economy in which the money supply plays a more neutral role, not so much based on deceptive stimuli that subject any economy to a bipolar disorder that is exhausting and fluctuates, between euphoria. and depression
5 things to know about Bitcoin
The endorsement that people give to banknotes, is the confidence in their value as a commercial exchange paper, and that is the same thing that happens with Bitcoin, people’s trust, Bitcoin accounts are managed with keys called addresses, where you can see the amount available. Then, trust generates the supply and demand that is what marks the price of Bitcoin, which means that the more people want it, there will be greater demand and this generates the rise in the price of its value.
There is no regulation by the government or banks. That is, nobody regulates its use, which indicates that there will be no person to say, we go and turn off the Bitcoins, that only happens if the entire network decides. We already talked a little about this when we explain the operation of blockchain technology in the previous article entitled, what is blockchain technology? Where the fact that decisions are made in consensus and not only by a person or regulatory body is mentioned.
It does not happen with this virtual currency, there is no way, unless they are illegal activities that a third person can take or freeze your Bitcoins. Today it is practically impossible, given the cryptographic protection that exists. The only way is that the address code is stolen from the user, since it is he who has control of the Wallet and the address.
Unlike local currencies that are issued by banks and only have value in the country for which they were intended, with Bitcoin transactions can be made from anywhere in the world at any time that is necessary, and to do so you only need have a stable internet connection.
The issue of low transaction fees for which Bitcoin became famous since its inception, is a benefit that has been decreasing over time, the greater the use of the network there is greater saturation, which generates a war of commissions, He who wants more quickly to his transactions, will pay more commission, but who does not care much about these issues, then he will pay less commission.
Payments with freedom
Paying with the Bitcoin can be done without the need to provide any data, just enter the page, they give you an address to which you have to send the Bitcoin, the shipment is made, and voila, the payment has already been processed. This is the freedom that gives your transactions to be considered anonymous and there are no personal records other than those that the user wants to provide.
What do you think about this topic? Did you know the difference between Bitcoin Gold and Bitcoin Standard?
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