It’s often hard to keep up with the fast moving world of cryptocurrencies. It’s been just over 2 months since the inception of Bitcoin Cash (BCC/BCH), the most recent Bitcoin hard fork which occurred on the 1st August 2017. In just 5 days however, Bitcoin will split again to once again form a new and separate cryptocurrency on an undecided date early November.
The Bitcoin blockchain will continue as normal, but at some point on the 25th October, the chain will be split and effectively paused. Block 497107 has been chosen to be the point in which the chain is split. The volunteer Bitcoin Gold team will then work on implementing the improved Bitcoin Gold code ready for November, at which point the chain will continue as the new asset.
Just like with Bitcoin Cash, any amount of Bitcoin you hold will be matched with Bitcoin Gold providing your Bitcoin is stored in the right way. Providing you have control of your private key, such as on an offline hard wallet or paper wallet, or you hold your Bitcoin in one of the supporting exchanges (listed below), you will be entitled to your fair share of Bitcoin Gold.
The Bitcoin Cash Hard Fork
When the Bitcoin Cash Hard Fork happened, there was a tremendous amount of uncertainty around what affect it would have on the overall market. Markets stagnated in the run up to the deadline date, but after the split, the Bitcoin price soared to new all time highs, and while the Bitcoin Cash price hit markets high, they soon plummeted as people sold their new ‘free’ cash.
It didn’t take long for the price to boom though.
As you can see, the price fell a massive 72% over the 4 days following the split, most likely due to people dumping their coins. The price then fluctuated between £158 and £262 until 17 days after the split when in 1 day it increased to it’s current all time high of £548, a massive 140% increase.
Could Bitcoin Gold follow a similar trend when it hits the markets in November?
What’s The Difference?
The Bitcoin Gold hard fork has a number of differences from both Bitcoin and Bitcoin Cash.
The main difference is the Proof Of Work (PoW) algorithm. It’s to be the only one which will use the Equihash algorithm. Z-Cash uses the same algorithm. It’s been chosen because it makes the mining process more accessible, which in theory should be cheaper for the user when making transactions. Devised by Alex Biryukov and Dmitry Khovratovich, it’s based on a computer science and cryptography concept called the Generalized Birthday Problem.
“The purpose of Bitcoin Gold is to make Bitcoin mining decentralized again. Satoshi Nakamoto’s idealistic vision of “one CPU one vote” has been superseded by a reality where the manufacture and distribution of mining equipment has become dominated by a very small number of entities, some of which have engaged in abusive practices against individual miners and the Bitcoin network as a whole. By changing Bitcoin’s proof-of-work algorithm from SHA256 to Equihash, all of the specialized SHA256 mining equipment will be obsolete for mining the Bitcoin Gold blockchain. Thus, Bitcoin Gold will provide an opportunity for countless new people around the world to participate in the mining process with widely-available consumer hardware that is manufactured and distributed by reputable mainstream corporations. A more decentralized, democratic mining infrastructure is more resilient and more in line with Satoshi’s original vision.” (From the official Bitcoin Gold website http://btcgpu.org/)
Below is a list of exchanges which will be supporting Bitcoin Gold:
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