The original Bitcoin chain split on 10/25/2017, creating a fork that gave rise to the Bitcoin Gold cryptocurrency. One of the features of the new electronic coin was the use of video cards during mining. Other computing power is not used here, so this cryptocurrency is the only one among the bitcoin forks, which is mined exclusively using GPUs. The creators decided that this approach will attract those miners who want to make money on the Equihash algorithm. It has not been previously used in the Bitcoin blockchain, but has already been encountered in Zcash. A feature of this algorithm is optimization for GPU mining.

The idea of creating this cryptocurrency was proposed back in June 2017 by J. Liao, who then owned the Lightning ASIC. The main thought when creating a new project was to improve the protocol of the original cryptocurrency through the use of processors that are on the video card. This decision is due to the high speed of the processors. Here miners can independently choose a suitable variant of the block volume that they will mine. By default, the size is set to 1 MB. Electronic coins are promoted by miners and programmers. Driven by J. Liao. The project is also supported by the owner of the Jinse.com website. The developers name remains unknown. It is only clear that a programmer with the nickname H4x3rotab is doing this.

The main differences in the cryptocurrency code relate to the algorithm, but this is not the only difference that can be found here. There is ASIC resistance here. Thus, it helps to avoid one of the main problems of Bitcoins, which is that the currency is accumulated in a certain group of miners with high power. Using its own algorithm allows you to compete with Ethereum. Bitcoin Gold has changed the algorithm that is responsible for adjusting the difficulty. The "interference" characteristic changes once every 14 days. She is responsible for creating obstacles for miners while solving problems. This is necessary in order for the rate of block mining to remain constant. The developers estimate that this time should be 10 minutes. Changes to the jamming settings are also planned. In the future, it is planned to replace them with a correction of the degree of complexity, which will be relevant for each block.

When this cryptocurrency appeared on the market, its rate was $ 480 and continued to grow. During this period, it has become an excellent investment tool. After some time, the rate was $ 540 per coin. Further, like many other cryptocurrencies, the rate began to decline. After listing, it was $ 123. Despite the significant decline in the rate of the cryptocurrency, it has a significant capitalization. In 2017, market competition became quite high, which led to serious difficulties for Bitcoin Gold. This project turned out to have a weak technical base, which did not allow it to withstand competition with newer coins. In particular, the emergence of Zcash has distracted the main target audience.

Changes in this area took place in the spring of 2019. Then the developers showed a roadmap. This led to an increase in the rate. J. Liao said that technologies such as Plasma and Lightning will be added to the project, after which many people paid attention to this project. According to analysts, the further fate of the project should be positive, as there is a general activation of the market and the technical base is changing.

Bitcoin Gold features

In 2017, many projects began to struggle with ASIC mining. Bitcoin Gold enables miners to mine coins on their own without pooling. The developers tried to minimize the risk that all mining would end up in the hands of a relatively small number of people, which would lead to the centralization of electronic coins. This can also affect the course and other features of the market position. Initially, users and miners perceived Bitcoin Gold with a certain degree of caution, but the rate remained stable. After a while, the developers decided to introduce a new algorithm, more suitable for modern realities. If in standard Bitcoin the main profit came from companies that are engaged in mining, then after the fork, ordinary miners also have the opportunity to receive income.

J. Liao stated that Bitcoin Gold has become a cryptocurrency that is available to every user. Accordingly, the decentralization of this currency is at a significantly higher level than that of Bitcoin. The project provides for such features as:

a dedicated site that will be used for business clients and investors;
the use of the Lightning Network, which will create opportunities for faster system functioning;
easy-to-use wallets (the system supports wallets, which can be in the form of applications for modern gadgets, not just browser versions);
using Plasma, which allows certain circuits to take on a secondary load from the general circuit.

How Bitcoin Gold is created

The main way to create this cryptocurrency is mining. At the moment, this process has not yet become as complex as that of the original Bitcoin. BTG can be mined by almost all interested miners, since the entry threshold is not yet prohibitively high. The main feature is the use of video cards, which also expands the possibilities for mining. The minimum characteristics of a computer that can mine this cryptocurrency should look like this: RAM - 4 GB, video card - 1 GB. The processor is not taken into account here, since it is not involved. The system must have updated drivers. Accordingly, this makes it possible to connect to the mining process even for users with average PC characteristics. Naturally, the higher the characteristics of the technology, the better the income from mining, but not every cryptocurrency nowadays has such an affordable entry threshold as Bitcoin Gold.

Now these coins can be found on many cryptocurrency exchanges, as they are supported by large and small platforms for exchange and trade. Now there are several dozen trading platforms where you can find many pairs for exchange and trading.

Features of cryptocurrency mining are aimed at expanding the audience in order to form the required level of decentralization and independence from certain factors, in particular the influence of large users on the rate of an electronic coin. If a person did not want to spend several thousand dollars on ASIC, then he could very well start mining this cryptocurrency.

Is Bitcoin Gold infinite?

The emission of this cryptocurrency is limited. It is 21 million coins, just like the original Bitcoin. In order to regulate the rate of coin mining and ensure a gradual increase in complexity, thereby maintaining the stability of the course, the creators took several steps. The difficulty of mining becomes higher after each new block appears. This is where re-transaction protection is used. On average, it takes about 10 minutes to generate one block, so when new blocks are mined, when the total power of the miners increases, the difficulty of mining also increases. The developers suggested that the limited emission would have a positive effect on the cryptocurrency rate. Considering the steady increase in difficulty, which leads to high energy costs for obtaining coins, this seems quite logical.

Strengths of Bitcoin Gold

Given the fact that this cryptocurrency appeared on the basis of the original Bitcoin, which has its own certain drawbacks, the developers decided to introduce several fundamental differences that became the main strengths. Among them it is worth noting:

quite simple deposit and withdrawal of funds for users, since wallets are the most convenient and transactions are not burdened with unnecessary difficulties;
high prevalence on various exchanges (it is worth noting that the new currency was quickly picked up by large resources, which greatly contributed to its spread at the initial stages);
high speed of transactions on the network, which distinguishes Bitcoin Gold from other forks (this is due to the lack of high network load);
low commission for transferring funds (here it has not yet been possible to move away from paying commissions, but they are much lower than that of other cryptocurrencies);
ensuring confidentiality, which is due to the use of a special protocol that promotes decentralization (these two factors are interrelated and have always been one of the main principles of the cryptocurrency);
the presence of protection against repeated transactions, for which the SighashForkld protocol is used;
a unique public address for all network users;
exclusion of ASIC devices from the extraction of electronic coins, which became one of the main reasons for the appearance of a new currency on the market;
the use of the new Equihash algorithm, which was then replaced with a more modern and suitable version, which helped to provide a wider audience for the chain;
the ability to participate in the mining of cryptocurrency using standard video cards without purchasing expensive equipment;
protection against "51% attack".
This set of features made it possible to stand out against the background of older cryptocurrencies, but did not ensure long-term preservation of its positions in the market. If at the very beginning of the appearance of the project a significant increase in the rate was noticeable, then after a while it significantly decreased. This was influenced by the emergence of more original and modern cryptocurrencies, which were already built on completely different principles and were more profitable, in the opinion of users and investors.

Bitcoin Gold in TOP currencies

At the moment, the place of Bitcoin Gold in the ranking of cryptocurrencies has significantly decreased in comparison with previous positions, but it is still in the TOP-50, and it has maintained this position for a long time. Bitcoin Gold is currently ranked 49th in the overall global ranking. No large fluctuations in the rate have been noticed in recent months, but the position also depends on the success of other cryptocurrencies, which, when they appear on the market, can occupy high positions. Many investors and users consider cryptocurrency to be a good asset, but not without risks, like any other electronic coin on the crypto market. Experts often refrain from making bold predictions about the future development of the project. The only thing they note is that sharp drops in the rate are not expected if there is no common cryptocurrency market in the crisis. This allows us to assert that a significant change in the ranking is also not expected.

The decline in the rate, which directly affects the position in the TOP, can be explained by several factors. The first is the general collapse of the market, therefore, when comparing the rate not against the US dollar, but in conjunction with other cryptocurrencies, no significant changes are noticeable. This was also influenced by the downturn in the excitement that appeared during the development of tokens, the demonstration of the roadmap and other news. It is worth noting that, for the most part, small investors are interested in the coin, therefore, large transactions are not made, and a shortage of currency is not created in the market. The presence of the prospect of access to this coin for ordinary users allows us to talk about the prospects for further development, but much depends on the characteristics of the market and the actions of larger players. If we manage to maintain decentralization for a long time, then the position in the TOP can rise to a higher level.