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About Bitcoin Gold

Bitcoin Gold or BTG is an open-source digital currency that was founded on October 24, 2017. Bitcoin Gold is a hard fork of Bitcoin that changed the mining algorithm and reduced the centralization of large businesses in favour of common technologies and smaller miners.

The reason for this was largely due to the introduction of ASICs (Application Specific Integrated Circuits). These purpose-built machines are designed to do one task; to mine crypto. With competition between companies on the rise, the community of BTG felt that Bitcoin was excluding smaller mining operations from participating in the creation of new coins. 

(BTG)

Bitcoin Gold

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What is Bitcoin Gold?

Bitcoin has been used since 2009 to enable private transactions. Before you decide to use BTG, consider that cryptocurrencies have widely differing use cases. The common ones are:

  • Cheap and fast remittance
  • Private transactions
  • Decentralized data storage
  • Programmable money 
  •  Collectables

Due to the wide difference in use cases, you should also understand the function of Bitcoin Gold before participating in its network or investing in it.

Is Bitcoin Gold a Type of Money?

Contrary to popular opinion, some cryptocurrencies cannot be used as money. Many cryptos are designed to be used as utility tokens while others are designed for use solely on their respective network. 

Many merchants are accepting BTG payments. If you want to receive payments in Bitcoin Gold, go to its official site and create your wallet. When you present your customers with a request to deposit the amount they need to pay and your BTG address, they can send you the money in Bitcoin Gold within 24 hours.

Unlike fiat currencies, BTG is a global digital currency. You can use it wherever you have access to the Internet. Besides, you can hold it in the wallet when the market conditions are favourable to increase its value. If you intend to convert the currency to your local fiat currency, use one of the many cryptocurrency exchanges to achieve this goal.

Bitcoin Gold is also a decentralized digital currency. You can transfer it to other users on the peer-to-peer BTG network without the interference of intermediaries or a central bank. 

Is it Legally Recognized?

More than 100 countries consider BTG as a viable alternative mode of payment. Many governments have issued laws and policies that govern the use of digital currencies. Some nations are concerned that the organizations that issue digital currencies like Bitcoin Gold are unregulated. But they allow their citizens to exercise the due diligence to be able to benefit from investments in cryptocurrencies.

Countries such as New Zealand and the Netherlands have legalized the use of cryptocurrencies. The law's application varies depending on whether the currency is a managed investment product, debt security, derivative, or equity security.

Israel, Bulgaria, Switzerland, Denmark, and the United Kingdom are some of the countries that have fully embraced crypto.

According to the 2015 court decision in the European Union, the gains in the investments do not qualify for value-added tax. Under English law, BTG is regarded as "property," which means that it has some degree of permanence, is definable, and third parties can identify it.

The difference in the ways countries tend to treat digital currency is because the industry is still maturing. Once all nations begin to appreciate the unique contribution of Bitcoin Gold to their local economies, they will lift all the restrictions and possibly make it a legal tender officially.

What Do People Use Bitcoin Gold For?

Gold Bitcoin is like Bitcoin. It offers an incredible platform for transactions, research, and crypto improvement. It also services as a currency. BTG also serves as an acceptable mode of payment for the settlement of goods and services, and also as an investment. You can access the currency on digital asset's marketplaces to buy and sell it as an investment product. Moreover, you can use Bitcoin Gold as an enabler of independent payment mechanisms.

What Merchants Accept Bitcoin Gold?

Leading merchants across the world accept BTG. This alone is a good testament that Bitcoin Gold is a trusted digital currency that you can use instead of fiat currency. Some of the top companies that are accepting Bitcoin Gold are:

MrChrissy Hosting

MrChrissy Hosting offers affordable hosting services. They also sell domains. Moreover, they accept BTG. If you are sick of the unrealistic 'discounted' pricing of hosting services designed to pull you in costly long-term contracts, you can opt to partner with MrChrissy Hosting.

MrChrissy VPN

MRChrissy VPN is another company that is committed to helping you avoid costly internet security services. They offer VPNs that guarantee your anonymity online.

149 Seed Bank

The Los Angeles-based online cannabis retailer offers hundreds of marijuana seeds to choose from. They also offer customer service from 6 am to 7 pm.

35 degrees North

This merchant accepts BTG and sells the best food products in the northern hemisphere. They claim that their brand is rooted in authenticity and quality service.

AutoSMO

AutoSMO is a reliable SMM panel. It helps to automate social media services.

The Technology Behind Bitcoin Gold

The cryptocurrency world is a technology-driven market. The innovations and solutions offered by various cryptocurrencies significantly differ between various coins and tokens.

How it Started-The History of Bitcoin Gold

Bitcoin Gold hard forked from the Bitcoin blockchain, at block height 491407, on October 24th, 2017. Immediately, the network received criticism from Bittrex and Coinbase for failing to follow the standard security requirements.

The Electric Coin Company had developed a proof of work algorithm based on the parameter set for the implementation of the digital currency project. BTG modified it and adopted the parameter set . The advanced algorithm, with the parameter set known as Equihash-BTG, requires more memory than the original one.

In May 2018, a 51% hashing attack hit BTG and exposed the Bitcoin Gold ledger blockchain to manipulation. The attackers stole about USD 18 million from numerous crypto exchanges, which led Bittrex to delist BTG. In January 2020, BTG suffered from the same attack again, and the company released version 0.17.2 to mitigate future attacks.

Bitcoin Gold was founded by a team of six experts led by Jack Liao. The co-founders who are currently involved in the management of the organization are H4X3ROTAB, Martin Kuvandzhiev, Franco Niebles,  Alejandro Regojo, and Robert Kuhne. The board makes strategic decisions with support from a team of over 20 experts, including the co-founders and the advisors. The involvement of the founders ensures that the team continues to pursue the original mission and embraces innovation.

Mining Bitcoin Gold-How are new coins created?

BTG used the Equihash algorithm to link the capacity for output to that for the memory. It also safeguards the network by imposing some workload on miners. Through this mechanism, the miners incorporate their processing power to the required mathematical difficulty. To ensure that smart machines do not override the community's interest, Equihash relies on RAM size as a departure point.

Supply-How many coins are available? What if they run out?

At the time of writing, the circulating supply of BTG is 18 million coins and the maximum supply is 21 million coins.

Bitcoin Gold is technically an inflationary currency. Despite the consistent increase in its purchasing power, the creators designed its inflation to mimic gold. As such, unlike a deflationary currency, people are incentivized to spend it, and you can use it in lending, which also limits the chances of the coin supply running out.

Decentralization-what it means?

BTG operates a consensus algorithm, which makes it decentralized. The Equihash algorithm gives ordinary miners a fair chance to use common GPUs to generate more coins.

The term 'decentralization' refers to the bank-free methods of transferring digital currency. Decentralization makes the digital currency immune to control by a central authority. It allows borderless payments, freedom from national monetary policies, and insulates customers from bank failures.

Bitcoin Gold as an Investment

BTG is worth as a reliable investment tool. The volatility and price increases are a point of interest.

The fact is that all investments come with some risk. As an investor, you must be prepared to take the risk. Beyond this, if you want to buy and keep your Bitcoin Gold to make some profit later, you should first understand the best storage options.

Why Should You Invest?

People choose to invest in cryptos like Bitcoin Cash and Bitcoin Gold to grow their finances. To achieve this, you have to understand the trading environment and make the buying or selling decision at the right time. 

If you want to protect your money from the national government policies' adverse impacts, there could be no better solution than this. Your investment goals will determine the best approach or the choice of wallets.

Price and Volatility-Why is the price so volatile?

The varying perceptions of digital currencies' intrinsic value as a store of value and method of value transfer drive their volatility. Bitcoin Gold prices can change at any time based on news events. 

The same applies to fiat currencies to some extent. The volatility presents a significant risk to many investors, but knowledgeable investors who understand the significance of the market cap and other dynamics depend on it to make profits. To mitigate the risk, only invest what you can afford.

Where to Buy Bitcoin Gold

Choose the right platform to buy your Bitcoin Gold to get the best value and mitigate security risks. There are several reliable places where you can make the purchase. I have shortlisted a few of my favourites below.

eToro

eToro is a global broker based in Cyprus, Israel, and the UK. Founded in 2006, the company has demonstrated the ability to offer safe financial services at affordable rates. Reputable organizations regulate and supervise eToro. Currently, over 319 million trades are being carried out on the platform.

Plus500

Plus500 supports several coins, including ETH, EOS, and BTC. It caters to the trading needs of the international BTG investors. Founded in 2008, the company has helped millions of traders to have full access to the financial markets. However, unlike eToro, it does not offer social trading.

FXTB

FXTB is an online-based broker in Cyprus that was founded in 2015. The Cyprus Securities & Exchange Commission licenses it to offer trading services throughout Switzerland and the European Economic Area.

Where to Store Bitcoin Gold

Secure digital wallets are required to store BTG. Even though some exchanges and brokers automatically provide one, it is necessary to know the options available and the security risks involved with the different types of wallets.

What are Wallets?

A crypto wallet is a software or application that allows you to receive, store, and send digital currencies.

What Types of Wallets are Available?

Choose a crypto wallet, depending on your needs. Here are the different wallet types that you can consider.

Web Wallet

These are wallets that are built into an exchange and online broker platforms. You can access them conveniently and get your money in 24 hours. Many of these wallets are secure and mobile-friendly. But you cannot ignore the risk of hacking or the potential of the service provider withdrawing from the business at any time.

Mobile Wallets

These wallets are designed for use on mobile devices. If you own a smartphone, you can access your money at any time. The built-in security and the unlock code for the phone make them highly secure. But that does not remove the risk of authorized access completely. Some of these wallets are:

  • Coinomi
  • Freewallet
  • Coinbase

Desktop Wallet

Unlike mobile wallets, these digital stores limit your access to your money.

However, they are more secure. You can also install additional security enhancements like 2FA. Some of these wallets are:

  • Atomic
  • Guarda
  • Exodus
  • Bitcoin Gold Core

Hardware Wallet

These are the safest wallets. They store your crypto offline in devices that never connect to the internet. Examples are:

  • Ledger Nano X wallet and Ledger Nano S wallet from Ledger
  • TREZOR One wallet and TREZOR Model T wallet from TREZOR

Wallet Combinations

For increased security and enhanced convenience, you can use a combination of different wallets. For example,

  • Ledger Nano S in combination with Electrum

Storing Your Wallet on an Exchange, the potential upside and downside

As we have seen, many exchanges have in-built wallets for their users. Before you opt for this option, do consider that their centralized structure provides easy access to hackers. The criminals often target newcomers and inexperienced users who are investing in significant amounts.

Suppose you prefer this option due to the convenience and affordability that it offers. In that case, you can look for an exchange that has added an extra layer of security. Alternatively, consider a cold storage wallet for a significant amount of your crypto holdings.

FAQs

  1. You should run a strong antivirus protocol, use cold wallets, implement AFA security protocols, and avoid accessing exchanges on public Wi-Fi

  2. It has the fundamentals of Bitcoin and, unlike others, it is mined on common GPUs.

  3. It introduced LN apps that have improved Bitcoin access and speed of transactions. This will directly benefit BTG due to the similarities in underlining mining technology.

  4. The cryptocurrency offers anonymous transactions. However, that only applies if you do not buy BTG in a regulated network that can tell the amount of BTG you purchased and the time of purchase.

  5. It enables the decentralization of BTG, which is critical to making the project community-driven.

About Bitcoin Gold