Bitcoin Gold (BTG) is a fork of Bitcoin, although it has not received as much attention as Bitcoin Cash or Bitcoin SV.
If you are unsure about what Bitcoin Gold (BTG) is, its potential, and whether or not you should invest, find out the answers below with AZCoin.
What is Bitcoin Gold?
Bitcoin Gold (BTG) is a type of cryptocurrency that follows the basic principles of Bitcoin but is mined on regular GPUs instead of specialized ASICs, ensuring that mining rewards are distributed to individuals worldwide rather than primarily to ASIC owners like Bitcoin currently.
Developed with the goal of “making Bitcoin decentralized again,” Bitcoin Gold developers believe that by implementing a new POW algorithm (called Equihash-BTG) for the coin mining process, Bitcoin Gold will not favor large mining operations on specialized devices.
Bitcoin Gold is a split from Bitcoin that occurred on October 24, 2017.
The current reality of the Bitcoin mining process is that to mine the most Bitcoin, one needs specialized mining rigs with expensive hardware. For individual miners, competing with these specialized rigs is very difficult, meaning that small-scale investors cannot mine Bitcoin and mining is reserved for organizations or wealthy individuals.
Bitcoin Gold aims to change the algorithm to make the mining process unable to run on specialized devices faster than on standard computer systems, allowing everyone to participate in mining and earn money, even as individuals. Additionally, Bitcoin Gold seeks to enhance anonymity by not disclosing transaction details or wallet addresses, promoting decentralization and transparency.
Basic information about BTG coin
- Ticker: BTG
- Blockchain: Bitcoin Gold
- Total supply: 21,000,0000 BTG
- Circulating supply: 17,513,924
- BTG coin price today: $26.27
If you are looking for a good trading platform to trade BTC, ETH, SOL,… check out the reviews on the best crypto exchanges 2024 page.
Controversial Events Surrounding BTG
- 51% attack on launch day, October 2017: BTG experienced a major DDoS attack on its cloud hosting site and within days of its launch, miners accused one of Bitcoin Gold’s developers of incorporating a 0.5% mining fee into the platform while concealing it from the mining community. Concerns were also raised that Bitcoin Gold’s security measures were not as robust as initially claimed, potentially making it more vulnerable to threats.
- 51% attack in May 2018 on Bittrex: Bittrex demanded over 12,000 BTG (worth USD 255,000 at the time) in reparations from Bitcoin Gold to cover losses incurred by the exchange. However, Bitcoin Gold did not compensate Bittrex, and the exchange subsequently delisted BTG.
- Coinbase’s skepticism towards BGT: Coinbase, one of the world’s largest cryptocurrency exchanges, expressed reservations about BGT at the time of its launch. Unlike Bittrex, Coinbase ultimately decided against listing BTG on its exchange. Representatives from Coinbase explained that they could not support BGT due to the developers not sharing their code for public review, which creates a major security concern.
Despite the appealing premise behind BGT, the two hacks it experienced have damaged its reputation for security. The significant difference in market value between Bitcoin and BGT is a testament to these concerns.
What are the key features of Bitcoin Gold (BTG)?
- New consensus mechanism: This allows individual miners to participate in the network without investing in expensive, high-tech mining rigs.
- Open-source, community-run project: Anyone can contribute to the development of the platform.
- Smart contract support: BGT is in the process of implementing smart contract functionality similar to Ethereum, which could expand the platform’s use cases.
- Lightning Network integration: BGT is extended by the Lightning Network, which has the capacity to route nearly infinite payments per second. This is an example of a “Layer 2” solution on top of the BTG main blockchain. Layer 2s and sidechains allow technologies like smart contracts to run at extremely fast speeds, secured by the underlying BTG main chain.
- 88 nodes worldwide: BGT has 88 nodes located in countries such as Germany, France, the United States, the Netherlands, Canada, and Japan.
- Full transaction anonymity: BTG features full transaction anonymity, shielding the wallet addresses of senders and receivers on the network.
Is BTG a Worthy Investment?
To evaluate Bitcoin Gold’s investment potential, let’s examine its price history:
Advantages
- Explain the faster transaction speeds compared to Bitcoin.
- Describe the new consensus algorithm that allows individual miners to participate in the BGT network with lower costs and without the need for expensive technology.
- Highlight the enhanced anonymity features.
- Discuss the ongoing developments to enable smart contract functionality and Dapp development on the platform’s layer 2.
- Emphasize the decentralized and censorship-resistant nature of BGT.
- Mention the limited supply of 21 million BTG, which could potentially contribute to price appreciation due to scarcity, similar to Bitcoin.
Disadvantages
- Security concerns: BGT has been hacked twice, which has eroded investor confidence.
- Low number of nodes: BGT has fewer than 100 nodes, compared to Bitcoin’s over 14,000, making it less secure.
- Price volatility: Bitcoin Gold’s price is highly volatile, making it a risky investment. It is also heavily influenced by the price of Bitcoin.
- Insider trading allegations: There is evidence that the BTG team pre-mined BTG on September 28, which was done in secret and without community input.
- Lack of competitiveness: Despite being a fork of Bitcoin, BTG does not compare favorably to other Bitcoin hard forks and faces competition from both Bitcoin and other forks.
Summary
By now, you probably understand what Bitcoin Gold (BTG) is, its advantages and disadvantages, along with the potential for development of BGT. If you have any questions you’d like to ask, feel free to leave a comment or contact us. Wishing you make the right and successful investment choice.
I am Tony Vu, living in California, USA. I am currently the co-founder of AZCoin company, with many years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
