Bitcoin Gold (BTG) appeared in 2018, intending to compensate for the limitations of Bitcoin. Although, Bitcoin did serve as the foundation for its debut.
Bitcoin Gold is a hard fork of Bitcoin. This means it’s a spin-off portion of the Bitcoin blockchain’s current blocks for autonomous governance. Since then, it has cut ties with the Bitcoin blockchain, building a team of developers that now numbers 24 people in 2021.
Hang Yin headed the Bitcoin Gold development team, which included six co-founders. They used open-source technologies to create the blockchain. It has fulfilled some of its claims, such as quicker process times than Bitcoin and complete anonymity.
So now, let’s explore deeper into this intriguing and growing cryptocurrency.
The Reasons for Bitcoin Gold’s Creation
The main objective was to use the current blockchain while providing complete anonymity. As well, lowering block size to speed up transaction times was a priority.
Bitcoin’s proponents believed it was skewed in favor of big miners. It was more comparable to giving tiny, day-to-day miners without pricey mining equipment the raw end of the deal. People saw this as a betrayal of the blockchain philosophy’s founding principle of democratic access.
Bitcoin Gold is a cryptocurrency that also acts as a platform for cryptocurrency research, development, and transactions. You can also use it for the following purposes:
- A form of settlement for services and goods
- An investment in marketplaces with digital assets
- A way to enable independent payment mechanisms
We should also note that to use BTG, you must have internet access to receive or transmit it.
How Does Bitcoin Gold Work?
The Equihash proof of work algorithm lies at the heart of the Bitcoin Gold network. The largest beneficiaries may be small-scale hardware miners. This implies that the blockchain and its reward structure will remain decentralized and democratic.
The Bitcoin blockchain is a community effort since it is largely open-source and technology-driven, allowing for transparency and decentralization. In terms of anonymity, it resembles Monero when compared to other cryptocurrencies.
It’s not like Bitcoin or Ethereum, both recognized for publishing transaction data through their respective explorers. This is where Bitcoin Gold differs from other cryptocurrencies in that it does not expose wallet addresses.
Is BTC Like Real Money?
The Bitcoin Gold price tends to hover around the 50 dollar mark right now. But you might be wondering whether you can use Bitcoin Gold like real money?
The Bitcoin Gold blockchain provides an equitable framework for many individuals worldwide, as well as a payment facilitator and a way of transferring wealth. Compared to fiat money, BTG checks certain boxes, but it is digital and not physically exchangeable.
BTG might not meet the criteria of legal currency, but this is not the end of the road. BTG, like most digital coins, has no institutional support declaring it as a national or international currency. Yet, market realities have conferred legitimacy and value on them daily.
People recognize BTG in over 100 countries for account settlement and payment of products and services. As a result, it meets all of the criteria and objectives of actual money.
In fact, it’s pretty easy to buy BTC along with actual real gold now on ByteFrederal Bitcoin ATMs these days!
What About Expenses and Fees?
For network transactions, BTG charges 0.5 percent mining fees. Many individuals believe this rate to be minor, especially if your transaction is of considerable value.
Expect some extra fees when buying the currency through brokers or currency exchanges, in addition to the network charge. These sellers will determine the costs you pay by the payment method you choose.
Investors who choose bank transfers will face a range of costs. Credit card payments can cost anywhere from 3% to 7%, while wire transfers might cost anywhere from 0.2 to 0.5 percent. This is because foreign payments are more expensive than those made inside the same country. Overall, these charges are minor.
Can You Be Anonymous Using BTG?
BTG provides transaction privacy. However, if you purchase BTG over a regulated network, the platform will track how much BTG you bought and when.
Also, if you acquire Bitcoin Gold on an open market, only the individual who transferred the BTG to you may tell you what you got. Aside from the limitations listed above, you can be anonymous, with no one knowing if you sold or transferred your holdings to anybody. Representation symbols and encryption hide the wallet identities of participants in a transaction, so the in-house explorer does not reveal them.
When one party delivers BTG to another, the delivery does not include the sender’s wallet address. Furthermore, it does not reveal the receiver’s actual wallet address. In both situations, the network creates an encrypted address for verification and validation.
Bitcoin Gold Wallet Options
The Bitcoin Gold wallet is intended to serve as the primary storage location across all Bitcoin Gold tokens. They come in a variety of shapes and sizes:
- Atomic BTG works for Desktop
- Exodus is a mobile wallet
- Freewallet is a web-based wallet
- Guarda is a web and mobile wallet
- Amon Tech is a mobile wallet
Hardware wallets are a good suggestion in terms of security. Ledger and Nano S Trezor are the most popular choices.
Investing in Bitcoin Gold
Bitcoin Gold looks set to be a solid choice for current and future investors. With many aspects of this cryptocurrency being appealing, it’s interesting to see what the future holds for this project.
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