Bitcoin Gold cryptocurrency guide advises where to buy and how to buy Bitcoin Gold. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Bitcoin Gold as well its status in the world of cryptocurrencies.
Bitcoin Gold, Tuesday, 2018-08-14
- 1 What Is Bitcoin Gold?
- 2 Beginner's Guide to Bitcoin Gold
- 3 Where and How to Buy Bitcoin Gold?
- 4 Bitcoin Gold Markets
- 5 Where to Spend or Use Bitcoin Gold?
- 6 How Does Bitcoin Gold Work?
- 7 Bitcoin Gold Regulation
- 8 Is Bitcoin Gold Secure?
- 9 History of Bitcoin Gold
- 10 Bitcoin Gold Videos and Tutorials
- 11 See Also
What Is Bitcoin Gold?
The world of cryptocurrencies is unfolding rather fast. In about ten years starting from 2009 when Bitcoin was launched, the race to launch the next better crypto appears to get even hotter. While a few cryptocurrencies are designed from scratch, many are those created to help remedy the flaws noted in the previous cryptos. One such cryptocurrency is Bitcoin Gold. Bitcoin Gold (BTG) was created to help address the problem of centralization in Bitcoin.
What exactly is Bitcoin Gold?
Bitcoin Gold is a decentralized and open source cryptocurrency designed from a fork of Bitcoin. It is one of the latest cryptocurrencies by early 2018 having entered the market only on 25th October of 2017. The fork took place at Bitcoin Block 491,407 with the purpose of restoring mining functionality to the community as opposed to being or only those with lots of cash to buy ASIC mining equipment.
In some platforms, Bitcoin Gold is referred as a newer version of Bitcoin as opposed to a competitor. The main difference between Bitcoin Gold and Bitcoin is the mining process. Bitcoin Gold uses Equihash PoW (Proof-of-Work) algorithm while Bitcoin uses SHA256. Bitcoin Gold coins were released in a proportion of 1:1 to the original Bitcoin. This means there is a total of twenty-one million coins that will ever exist in BTG network. By 31st January of 2018, the total circulating supply of BTG was 16.7 million with a market capitalization at $2.59 billion.
The main focus of Bitcoin Gold, just like the original Bitcoin, was to facilitate the transfer of funds on a peer-to-peer basis. People in the network can send and receive payments directly without going through third parties such as banks or financial institutions such as credit cards.
Beginner's Guide to Bitcoin Gold
Have you been contemplating to join the cryptocurrency niche? It is one of the most rewarding investments you can think of. But the rewards that you can get in the cryptocurrency network are dependent on the network that you select. In many cases, the cryptocurrencies joining the market target remedying the flaws reported in the previous versions. Such was the case with Bitcoin Gold.
Bitcoin Gold was introduced as a hard fork of the Bitcoin core. The main aim was to help address the serious problem of mining centralization. Since the formation of Bitcoin in 2009, the mining difficulty has been increasing and made it impossible to mine with standard or GPU (Graphics Processing Unit) systems. By only allowing ASIC based mining, it means that only the super rich can mine the remaining and highly demanded BTC.
Bitcoin Gold was created by the CEO of ASIC mining, Jack Liao. Liao wanted to change the situation where only the super rich could mine Bitcoin. Though Liao’s move attracted a lot of criticism from Bitcoin community, it is now emerging that BTG could actually be better than Bitcoin.
What to look for when joining BTG network
The association to Bitcoin as some investors indicate is ample to catapult BTG network to success. Therefore, do you join the BTG network and wait to enjoy the anticipated growth or choose other networks? It is very important to follow the facts about the network. In this guide is a comprehensive look at the BTG network to establish every component related to its operations.
The guide answers all the questions that you might have about BTG so that you can make an informed decision about investing in it. From where to buy, where to trade, wallets, and value of BTG to the involved risks, nothing is left out.
But the guide does not stop there. It goes ahead to look at the transaction fees, the Bitcoin Gold regulation, taxes, risks, and native coin losses. These and many others are captured in the guide vividly to cleat every issue you had about the BTG. Welcome to learn about all of these and more in the guide.
Where and How to Buy Bitcoin Gold?
When people consider joining cryptocurrencies, the main target is taking advantage of the fast-growing value. If you invested in Bitcoin when it was launched in 2009, the investment would have grown with more than 10,000% by the start of 2018. Now, Bitcoin Gold is at the early years, and you can expect the investment to grow with a huge margin in the next ten years. But first, you need to get hold of BTG coins. Here is the procedure.
- Start by selecting an appropriate BTG wallet. BTG wallets are the locations that hold cryptocurrencies after a successful purchase or mining. The wallets are designed as storage units to facilitate holding, sending, and other transactions.
- Identify a good cryptocurrency exchange and purchase BTG. Once you have an appropriate wallet, it is time to go ahead and get the BTG coins of choice. The best places to get these coins are the exchanges. These are markets that facilitate the trading of cryptocurrencies. The exchanges operate like standard forex markets though they trade in crypto assets. Depending on the exchange you select, it will be possible to buy BTG with either fiat currencies or other cryptos. Some great examples of crypto exchanges include Coinbase, Poloniex, and CEX.io.
- Buy BTG from those who have them. Between 2009 and 2018, the popularity of cryptocurrencies has grown so much. New cryptocurrency clubs that facilitate the meeting of crypto enthusiasts have emerged. But they do not simply allow the meeting between crypto enthusiasts; rather, they also facilitate direct trading. The good thing with these clubs is that there are no rules. As far as the buyer and seller agree, the sale is on. One such club is the LocalBitcoins.com.
- Buy from cryptocurrency brokers. Just like fiat currency have brokers, so are the cryptocurrencies. The brokers operate like the crypto exchanges though their prices are adjusted upwards for higher profits. One great example is Coinmama.
Bitcoin Gold Wallet
Do you anticipate joining the cryptocurrency world; you will need a cryptocurrency wallet. The wallets are digital locations that hold your coins after payout, mining, or buyout. Though the wallets are considered storage facilities for cryptocurrencies, the definition is a misconception. In reality, crypto coins such as BTG are digital and never leave the native network. If the wallets do not store the actual crypto coins; what exactly do they store?
Cryptocurrency wallets are designed to store special codes that point at your coins in the main network. In particular, they store private keys and public keys. The private keys are special codes that help to point at the coins you own and activate them for trading, sending or other events. The private keys are only known to you and the wallet. They should never be shared with third parties.
The wallet also stores the public keys. As the name suggests, the public keys are public and can be shared with others in the network. They are like the address to your bank account that is given to payers who want to make payments. Therefore, you can share the public keys without worrying. Depending on the selected wallet, you can generate multiple public keys pointing to your account.
The best Bitcoin Gold wallets:
1) Ledger Nano S (hardware wallet)
- Ledger Nano S is a hardware wallet that has won praise for its unique security features. The wallet is designed by a US-based company referred as Ledger. Its design was aimed at giving the user absolute control over their wallet and Bitcoin Gold coins.
- When you use Ledger Nano S for the first time, it will generate private keys seed phrase that you should use to recover BTG in case of wallet damage or loss. As a hardware wallet, all the coins are stored offline to reduce the risk of hacking and theft. So good is the security provided by, Ledger Nano S that users can even make transactions in compromised computers without worrying of ever getting attacked.
- For some people, it is the ability of Ledger Nano S to hold multiple crypto coins that have made them develop a particular attachment to it. If you target holding multiple coins for trading or other purposes, Ledger Nano S is one wallet that will never disappoint.
2) Coinomi (mobile wallet)
- This is a leading mobile cryptocurrency wallet that works like your standard apps. It is preferred by Bitcoin Gold users because it supports over 78 cryptocurrencies. Before the wallet can be used, it requires users to generate the private keys that are only stored in the app. This implies that you have to carefully protect the app and the phone because losing either of them means loss of BTG.
- One unique thing about Coinomi is that it comes with ShapeShift inbuilt as one of the main features. This makes trading BTG for other top cryptos direct and easy. If you opt to use Coinomi, it is advisable to back it up away from the internet for easy recovery in case of a loss.
3) The Bitcoin Gold Core (desktop wallet)
- This is the official client for users who want to act as nodes in the BTG network. The wallet allows you to carry most of the activities in the Bitcoin Gold network. You can store, send, and even receive BTG coins on the network.
- Unlike other wallets that only require you to download the specific apps or just activate the hardware, Bitcoin Gold Core requires users to download the full network block. This is because it needs to connect and operate in liaison with other nodes when confirming transactions. This means that you need ample RAM and space in the computer hard disk.
- As a desktop wallet, the Bitcoin Gold Core stores your private keys in the desktop. Users have to be extra careful with the wallet to avoid loss. You have to carefully store the private keys and recovery seed phrase to use in the event of a loss. It is also crucial to take good measures to protect the wallet and your PC from attacks.
4) The freewallet (mobile wallet)
- This is one of the top cryptocurrencies in the market that have cut a name or supporting a lot of crypto networks. The mobile wallet comes with a sync management system that allows users to shift their coins to the cold storage when not trading in the exchanges. This helps to keep the coins free from hackers and malicious codes.
- The wallet management system allows users to freeze the coins and prevent access by third parties in the case of phone loss. You only need to have another iOS or Android smartphone to access the account. To keep your coins extra secure, the Freewallet has two-factor authentication. Before initiating a transaction, you must verify with the email and phone number. It is because of these security features that Freewallet is considered one of the most secure options out there.
Where to Buy Bitcoin Gold with Credit Card?
When the term a cashless society comes into the mind, many people often confuse it with plastic money. Because of their acceptability especially in e-commerce and other online platforms, almost everyone has a credit card. If you have a credit card, it is now possible to also buy Bitcoin Gold with credit cards. The first step in buying Bitcoin Gold with a credit card is ensuring you have an appropriate cryptocurrency wallet. Then, use any of these exchanges to buy BTG.
Where to Buy Bitcoin Gold with PayPal?
There is no direct way to buy Bitcoin Gold with PayPal. PayPal considers cryptocurrency networks as major competitors and discourages direct use in their networks. In case you are found to have used PayPal to make payment to a crypto network, you will be penalized, or the payment account closed. If you have cash in PayPal, the best way to buy BTG is converting to fiat or loading into the credit card.
How to Buy Bitcoin Gold with Wire Transfer?
Banks occupy a special place in the hearts of many people. Even as the cryptocurrency community marches towards the true cashless society, virtually every person has a bank account that helps to secure loans, process salaries, or keep savings. It is a great idea to enhance diversity as opposed to placing all the funds in one niche that comes with numerous risks. If your cash is in a bank account and you want to buy Bitcoin Gold, here are the main procedures to follow.
- Start by acquiring an appropriate cryptocurrency wallet. This is the location that will hold our BTG coins after the buyout is completed.
- Look for an appropriate exchange that allows buyers to make payment in a wire transfer. Some top options include CEX.io and Bitfinex.
- On the exchange, navigate to the purchase section to select the quantity of BTG to buy. Then tick pay with Wire Transfer and the transaction will immediately shift to pending.
- The crypto exchange will use the details you have provided to make a claim at your bank. Once the cash reaches the exchange, the transaction will be completed, and the status will change to purchase confirmed. Now, check the balance of your BTG in the respective wallet and it will no doubt reflect the new coin balance. Remember that purchase through wire transfer takes between two to four days.
Where to Sell and Trade Bitcoin Gold?
Most people coming to Bitcoin Gold network are targeting to get the native coins and trading them in the markets. Trading BTG and other altcoins have become a great economic activity with some people opting to shift from forex to crypto trading. To trade in cryptocurrencies such as BTG, you need to pick the right platforms.
Selling and trading BTG mainly takes place in cryptocurrency exchanges. Though you can also sell in clubs such as LocalBitcoins.com and others, the process in such platforms is lengthy and insecure. The only place you are sure of visiting anytime and getting clients is an exchange.
One thing you need to get right when selecting an exchange is that they are easy targets for hackers and cybercriminals. The cryptocurrency exchanges are different from the native crypto networks. While Bitcoin Gold development team works extra hard to keep its users secure, they do not have any control in exchanges. Indeed, most exchanges are operated under the local laws. This means that you will be required to verify the trading account with personal details such as proof of location, email address and even phone number in some cases. Here are some of the top Bitcoin Gold trading platforms. The main platforms to consider include.
How Much Are the Transaction Fees of Bitcoin Gold?
The main reason that draws people to the cryptocurrency networks is the low cost of sending funds. BTG has helped to advance this notion by maintaining a very small transaction fee. This is one of the main reasons why BTG is believed to be on the way to becoming a major payment network.
The transaction fee at the BTG network is not fixed. It depends on a number of factors including the trading volume, demand, and mining dynamics. Around November of 2017, the transaction fee at Bitcoin Gold network was $0.26. This was the highest amount to ever fee in the network. Between December of 2017 and January of 2018, the price stabilized at $0.01 and $0.04.
When the BTG transaction fee is compared to that of other top networks such as Bitcoin, BTG comes out to be a better network for sending cash. For example, the transaction cost at Bitcoin in January of 2018 was $28 while that of BTG was $0.04. This means it's very cheap to send funds using BTG compared to BTC. This is one of the reasons for rapid fluctuation of BTG prices because more clients are simply converting their BTC to BTG before making transactions.
Bitcoin Gold Markets
Bitcoin Gold markets are the top platforms used by buyers and sellers to help them trade the native coin for other altcoins or fiat currencies. Unlike the main Bitcoin Gold networks, the markets are exchange platforms guided by local laws in respective jurisdictions. For example, the Chinese based Binance exchange is guided by the local Chinese laws. In the US, the exchanges are guided by the Commodities Futures Trading Commission (CFTC).
Because the exchanges are third parties, it is important to appreciate that they are easy targets for hackers. It is not uncommon to regularly get reports that a cryptocurrency has been hacked and a lot of altcoins siphoned away. To be sure of picking the best cryptocurrency, here are some useful tips to use.
- Only go for the market that does not have a hacking history.
- Select the market that has an easy to use interface.
- Look for the market that has a good reputation for users.
- Go for the market that has affordable rates.
- Only use the market that moves clients’ coins to cold storage for extra security.
- Where possible, consider the market that insures users’ coins to reduce the level of loss in the case of a successful hacking attempt.
Top four Bitcoin Gold markets
- CEX.io is among the leading crypto exchange platforms in the market today. The main selling point of the exchange is its diversity. It allows users to trade BTG for other cryptocurrencies or fiat currencies. To make trading easy and direct, CEX.io provides advanced analytics for most coins that will help you to make the best investment decisions. You can customize the personal trading account to follow the performance of BTG only or specific trading pairs.
- Unlike other cryptocurrencies that are highly geo-specific, CEX.io is one of the altcoins with very acceptability all over the globe. By accepting payment using credit cards and only charging a very small fee, CEX.io is very appealing to both new and experienced traders.
- Binance is a Chinese based cryptocurrency that has been growing rapidly. As a Chinese based platform, traders would expect that the exchange will have a lot of challenges because China discourages crypto related activities. However, the cryptocurrency is only open to traders from outside China.
- The platform has a very small trading fee of only 0.1%. This makes it one of the cheapest platforms for trading BTG in the market today. They also release regular discounts to traders on the platform. Remember that to use the platform; you are required to start by opening the account and verifying personal details.
- In addition to serving as a cryptocurrency exchange, Binance also has its native coin referred as BNB. You can opt to trade in BTG, other cryptocurrencies, or BNB. Those who trade in BNB get regular discounts in reduced transaction charges.
- Changelly is among the leading cryptocurrency trading platforms with a lot of support in the globe. It was developed by the famous MinerGate. MinerGate is known for its consistency in developing high-quality products such as the MinerGate mining pool. The most outstanding thing about Changelly is its minimal verification requirements. To start trading at Changelly, you only need an email address. However, trading at this level of verification still comes with some limitation on the amount you can trade. If you need to trade in higher volumes, additional verifications with a personal phone number and proof of address are needed.
- The fee for using the network is only 0.5%. Though the charges are still relatively high compared to other platforms that charge as low as 0.1%, they can do better with a lower figure.
- Many traders in the platform indicate that Changelly trading interface is very appealing. It is easy to follow BTG performance as well as any trading pair to make the best moves for higher profits. Besides, they also accept multiple payment options including wire transfer, credit cards, and fiat currencies.
- This is one of the leading cryptocurrencies in the market today. It is considered among the best options for traders because it supports Bitcoin and other altcoins. Therefore, you are always sure of having a more profitable pair to rush to when the current trading pair proves less profitable.
- Bitfinex provides advanced trading analytics that helps users understand the emerging trends for correct speculation. You can follow the cryptocurrency performance trends and make the perfect move at the right point to optimize profits when trading in any BTG pair. This means that even new BTG traders can still join and start trading like experts in no time.
- The most outstanding thing about Bitfinex is allowing traders to use multiple payment options. You can opt to trade BTG for other crypts or fiat currencies. It is one of the top options for users who want to convert their BTG or other altcoins into cash. Note that for those who target trading in larger volumes, the exchange does not have limits for withdrawals.
Value of Bitcoin Gold
The value of Bitcoin Gold has fallen by more than 50% since launching in October 2017. Immediately after launch, BTG coins were trading slightly over $450. However, the value plummeted the following day to about $150 and further down to $110 on 28th October 2017. Since then, the value of BTG has fluctuated between $80 and $350. In mid-January of 2018, the value of BTG rose to $339 before taking a downward trend to the standard range of $110.
Investors and BTG community have indicated that the large price range makes it extra difficult to predict its future performance. However, the fact that it is different and indeed better than Bitcoin implies that the future could be great.
Many people are expressing optimism that the BTG will finally take the exponential projectile when Bitcoin finally starts slowing. However, with another Bitcoin fork that gave Bitcoin Cash having been implemented only several months before BTG, the performance of Bitcoin Gold could be bleak. Therefore, it is important to follow the price shifts carefully when investing in BTG to optimize profitability.
Is It Profitable to Invest in Bitcoin Gold?
Many people with the idea of joining the BTG network want to know whether it is profitable or not. Since BTG launched in October of 2017, the performance has been shaky. Its value has been fluctuating so much to the extent of making investors wonder whether it is a good investment. In the long run, BTG will probably turn out to be highly profitable.
The design of the BTG network is the only model that closely mimics BTC in performance. This means two things. One, BTG will attract a lot of people who want to get the same exponential growth the BTC reported in early years. This is a special way to catch up if you never got the opportunity in 2009 when BTC was launched. Two, a lot of investors in BTC who feel that the crypto has reached climax will offload to another top profile crypto such as BTG and BCH (Bitcoin Cash).
The growth of BTG is riding on the original Bitcoin. The mere association to Bitcoin has made a lot of people to believe that they are still in BTC. This connection is expected to keep growing the value of BTC for a long time. The focus of BTG founder and core development team is very noble. A very big proportion of the people joining the network are indicating they are fascinated by the genuineness of the founders. By committing to taking the power of mining back to the community, there is a bigger appeal for the followers. This is anticipated to continue driving the demand and value of the BTG to higher levels over time.
Note: Though there is great enthusiasm about the expected growth projectile and profitability of BTG, it is important to appreciate the challenges that lay on the way. If the development team manages to keep the network completely secure and the community growing, the profits will keep rising.
Where to Spend or Use Bitcoin Gold?
By early 2018, Bitcoin Gold was still young and very few stores were accepting it for payment. However, this does not imply that you cannot complete a purchase if you only have Bitcoin Gold. The best way to spend BTG is converting to Bitcoin and using BTC to make purchases. Some of the stores you can buy using Bitcoin include Expedia.com, Overstock.com, eGifter, and Zynga.
Can Bitcoin Gold Grow to Become a Major Payment Network?
Every cryptocurrency network out there targets becoming a major payment network. However, only those that work closely with major organizations and online stores stand a chance. While BTG was very young by the start of 2018, it stands a great chance of becoming a major payment network.
Because of the low cost of transactions in the BTG network, more people are likely to use it to make payments. It is indeed cheaper than Bitcoin. This is expected to continue attracting more people including those who only want to send cash and not necessarily joining the network.
The fast-growing trust in the BTG network means that more people are joining the network. This pace should be maintained to enhance interest and value growth over time.
While BTG is very young, more people are associating with it than Bitcoin. By the time BTG was launched, everyone with BTC was given BTG at a ratio of 1:1. Because of this unique distribution, the popularity and acceptance are expected to continue growing at par with Bitcoin.
Even though Bitcoin Gold is likely to continue gaining ground and edging towards becoming a major payment network, success will depend on the ability to draw more interest. It is particularly important that BTG core team works towards developing partnerships with top companies especially e-commerce stores. It should also forge partnerships with banks and other financial institutions to win their trust. This is one of the successful approaches being used by Ripple.
How Does Bitcoin Gold Work?
The operations of Bitcoin Gold are similar to those of Bitcoin but differ slightly when it comes to mining. The main target of both cryptocurrencies is to remove the bottlenecks that are brought by centralized institutions such as banks when sending cash. Bitcoin Gold core code is a network of users spread across the globe to facilitate direct transactions on a peer-to-peer basis. To use the network, you simply need to join Bitcoin Gold and convert your cash into BTG coins. These are the native assets that users from any part of the world can convert to recover their money. By eliminating the centralized authorities, it means three things;
- The cost of transactions is very low because there is no profit-driven institution such as banks.
- No one can know your details because all transactions are encrypted before being flagged off.
- The transactions can be done any time of the day or night. Remember that once the transactions are confirmed, they cannot be reversed.
The operations at the Bitcoin Gold network involve three things; the transaction, mining, and public ledger. When a client initiates a payment, this is referred as a transaction. It is the main method of transferring value in the network. The Bitcoin Gold network encrypts all the details of the transaction to ensure that your details cannot be unmasked.
Once a user in the network flags a transaction, it is taken over by miners who follow back to confirm that the sending address owns such BTG coins to spend. If the sender has ample BTG to spend, the details of the transaction are confirmed and immediately added into the next block before inclusion into the Bitcoin Public ledger. This is a final record that cannot be altered. This means that if you send BTG to the wrong address and the transaction is confirmed, there is no way that the transaction can be reversed.
Does Bitcoin Gold Use Blockchain Technology?
Yes, Bitcoin Gold utilizes blockchain technology. The Bitcoin Gold is a peer2peer network that allows users to send cash without using third parties. This means that the sender and recipient are on the same network. Bypassing intermediaries means that the transactions are direct, cheaper, and more reliable. It also implies that they can be made any time of the day or night.
The Bitcoin Gold is a blockchain of a well-distributed data structure that facilitates managing the core assets in the network. The main motivation of the Bitcoin Gold blockchain is to create an independent network that people can own and use without worrying of restrictions by third parties. To facilitate smooth operation of the blockchain, the Bitcoin Gold system monitors all the transactions to ensure that decentralized nodes spread across the globe verifies all the details. The Bitcoin Gold employs blockchain proof-of-work algorithm to prevent double entry that can confuse the blockchain.
Thousands of nodes spread in the BTG network compete against each other to confirm transactions for a reward. All the transactions that are confirmed are consolidated every 10 minutes and then added into the Bitcoin Gold public ledger. Note that you can also confirm the transactions by downloading the Bitcoin Gold client that will make you a full node.
The security of the network is dependent on the users spread in the network. In the main Bitcoin network, only nodes with very strong mining equipment can confirm transactions. This raises the risk of a lot of Bitcoins falling in the hands of a few parties. This is the problem that Bitcoin Gold came to solve. Users in the BTG network can mine Bitcoin Gold Coins with standard computers.
Mining Bitcoin Gold
When Bitcoin Gold was launched, a total of 21 million coins were created. This is the same number that Bitcoin created in 2009. But as a fork of Bitcoin, it meant that every person who had BTC was entitled to the new coins. Therefore, all the coins in the Bitcoin network up to Bitcoin Block 491,407 received BTG on a ratio of 1BTC:1BTG. The remaining BTG coins will be released through mining.
BTG mining is the process employed in the Bitcoin Gold network to confirm transactions for a reward. The miners are users spread in the BTG network as nodes. The network employs the equihash Proof-of-work algorithm that is resistant to ASIC mining. This algorithm generates a complex mathematical problem that must be solved before a transaction can be confirmed.
Every time a block is added into the Bitcoin Gold public ledger a reward of 12.5BTG is released to the node that confirms it. The reward halves every four years. This means that it will half by approximately 2020.
How to mine the Bitcoin Gold network
To start mining the Bitcoin Gold network, you need to have a full node. This means that you must have a computer with enough memory and hard disk to store the public ledger. Here are the main things that you need to start mining Bitcoin.
- Appropriate Bitcoin Gold wallet. This is the location where your BTG coins will go after you successfully mine the network.
- The right mining software. The main mining software used in the Bitcoin Gold network is the Bitcoin Gold Core client. The mining software helps you to start solving different mathematical problems to confirm transactions.
To increase the chances of solving more mathematical problems and get rewarded in the Bitcoin Gold network, it is always advisable to join a mining pool. Mining pools are groups of people who come together to consolidate their hashing power to raise the chances of confirming more transactions.
Though you will confirm more transactions in a pool, it is important to appreciate that the rewards will be shared among the members based on their contribution to the mining power. Remember to vet the selected mining pool carefully to avoid falling into the hands of scammers.
What Are the Advantages of Bitcoin Gold?
- Bitcoin Gold is an anonymous cryptocurrency. This allows users to send and receive cash in full anonymity. Once you join the network, there is no risk of having your details getting known to third parties such as bank staff or even administration. Even those who help to confirm transactions in the Bitcoin Gold network do not get access to users details. They can only confirm the balances in the respective accounts without knowing the actual holders.
- Bitcoin Gold provides total cover from third-party seizures. If you have cash in a bank, the chances of getting it frozen with the strike of a pen are very high. However, people who invest in Bitcoin Gold are free from third party seizures. The network anonymity helps to mask your presence and investment. In reality, you have totally hidden and taken control of the personal investment.
- The surest way to use and own the network. When the BTG cryptocurrency code was released, it changed the ownership from the founder to users. All the users in the network are involved in consensus building that determines the direction of every activity.
- You have absolute control and freedom to use the Bitcoin Gold network. If you have cash saved in a bank account, processing it for payment is only possible during the working hours. For example, you cannot send cash over the weekend, at night, or during holidays. But Bitcoin Gold is different. The network allows users to send or use the system any time of the day, night, and even weekends. All that a user needs is the correct address of the target recipient to initiate and complete payments.
- The Bitcoin Gold network is designed to remedy issues related to mining in the original Bitcoin network. By allowing more people especially those with standard computers to mine the network, it means that BTG will have greater acceptance, a larger community, and higher value.
- Since BTG was released in October of 2017, its value has remained relatively steady and indeed higher compared to others in the market. By January of 2018, BTG was trading above $120. This is a great margin compared to other cryptos that are trading far below that figure even though they have been in the market for longer.
- There is a lot of enthusiasm about Bitcoin Gold. Because it is better than Bitcoin, many people see it as a great replacement that guarantees higher ROI (return on investment). Some are even arguing that it could finally replace Bitcoin.
- Bitcoin Gold is associated with Bitcoin. This means that it shares the qualities, history, and characteristics of the oldest cryptocurrency. This implies BTG raced far ahead of others regarding acceptability, especially as a payment option. Wherever you see Bitcoin being accepted, it means that BTG is also likely to be accepted.
What Are the Risks of Bitcoin Gold?
While many investors targeting Bitcoin Gold are optimistic that the value will continue growing, they should also be aware of the many demerits that come with it. Here are some of the key disadvantages that you should know.
- The cryptocurrency has suffered very many waves of attacks. This could indicate two things that can easily doom the crypto in future. One, the community indicates that the lead team could be lax. Two, the Bitcoin Gold core code might be weaker compared to other cryptos. If these two scenarios are true, the future of Bitcoin could be bleak.
- Bitcoin Gold is an anonymous cryptocurrency. The anonymity makes it very difficult to know about the people you are relating or transacting with. This means that you could even buy counterfeit or even get involved with criminals without knowing.
- The danger of losing Bitcoin Gold always looms. Bitcoin Gold coins, like other cryptocurrencies, are at a great risk of getting lost. Whether it is through sending to the wrong address or hacking of the system, the danger always looms. What is even more painful is that once such losses occur; there is no way to reverse the transactions. The coins are gone forever.
- The danger of the looming regulations. When cryptocurrencies entered the globe, many administrations felt threatened. Their powers were slowly getting usurped by the crypto networks. It is because of this view that governments such as China and Russia have been very aggressive in cramping crypto related activities. Now, every country in the globe is working on passing legislation to regulate cryptocurrencies. If the regulations will be negative, there is a risk of Bitcoin Gold value going down and losing the appeal.
- The danger of new and more advanced cryptocurrencies entering the market. A closer look at cryptocurrencies reveals that most of those being released target covering the shortcomings of the previous versions. For example, Bitcoin Gold was forked from Bitcoin to address the problem of centralized mining. This is actually a serious threat to most cryptocurrencies because the upcoming newer cryptos are very advanced and could outdo them.
- Bitcoin Gold is one of the latest cryptos in the market. This implies that most of the features are still being tested. It will take several years before the stability of BTG can be ascertained.
- The risk of future forks of Bitcoin or Bitcoin Gold. Bitcoin Gold was released as a fork of the original core code on the heels of another fork that gave Bitcoin Cash. This has been taken to mean that Bitcoin might be using the forks to raise the number of coins in supply. If new versions of Bitcoin are released through forks, there is a risk of inflation and downward shift of BTG value.
What Happens if Bitcoin Gold Gets Lost?
When you get some BTG coins, the risk of loss is never away. But what happens when such a loss happens? It is not uncommon to hear people crying that their BTG coins were lost. Your wallet could be hacked, the cryptocurrency exchange could be attacked, or the private keys lost.
Here, it is important to note that BTG only resides in the main network. This implies that even if you have lost BTG, they are still in the network. To understand what happens in the case of a loss, it is better to follow them based on the nature of loss.
BTG loss through hacking of your wallet or exchange
If your BTG were lost through hacking of the wallet or at the exchange level, it means that they have changed hands. They have simply been transferred to a new owner. This implies that the coins are still in the network under a different address. The bitter thing about the loss is that there is no way you can tell who owns the coins and the transaction are irreversible.
BTG lost through forgetting private keys or loss of the wallet
The private keys are the identifier codes that point and bring to life your coins in the BTG network. Therefore, when you forget the keys, it means that the coins will still be in the network but in a dormant state. To bring the BTG altcoins back to live, you have to get the private keys.
In case you lost the BTG wallet, the Bitcoin Gold coins will still be in the network waiting to be activated. You need to restore the wallet and use the private keys. You can also get a new wallet and use the private keys to reconcile the BTG.
Bitcoin Gold Regulation
When cryptocurrencies entered the globe in 2009, most governments had a serious sense of disproval. They saw the cryptocurrencies as new forces that were out to wrestle of the grip on individual economies. By early 2018, no country had passed laws to guide or regulate cryptocurrencies. Even those that have some form of control only used direct executive orders as opposed to complete legal frameworks.
Many people have been asking about the state of the Bitcoin Gold regulations and why a lot of countries have been lax on passing related laws. It has emerged that though cryptocurrencies are indeed threatening to take away a lot of powers from centralized authorities, they also have a solution to Big Data.
In the United States, different agencies have been producing a lot of data that is now becoming a problem. How do you store health records of all Americans over all the years? Well, converting them to hard copies is not an option because of the risk involved. The solution is blockchain technology. Here are additional reasons why many governments are finding it very difficult to regulate cryptocurrencies.
- The blockchain technology is advancing very fast, and most governments are forced to play catch-up. This makes it extra difficult because administrations cannot tell what new technology will emerge.
- The blockchain technology such as that used in BTG has made the cost of essential services such as sending money very cheap. Therefore, limiting the use of BTG and other cryptos will make governments look insensitive to their citizens.
- The growth of cryptocurrencies has gone too far within the last ten years. The emerging attachment to crypto is making governments unpopular. In a country such as South Korea, the crypto community has grown so much and is influencing even the political decisions.
- The cryptocurrencies are not owned by any single individual. Unlike banks that have specific targets such as registered companies or individual owners, the cryptocurrencies are owned by the users spread across the globe.
- Many administrations are contemplating of starting their networks. Great examples, in this case, include China and European Union.
What is the future of Bitcoin Gold regulations?
Even as investors in BTG and other cryptocurrencies remain upbeat about lack of regulations, experts see it differently. Many governments are willing to go an extra mile in drawing regulations to nip cryptos in the bud and limit related activities.
Whether sooner or later, the truth is that BTG and general cryptocurrency regulations are coming. These regulations are likely to target reducing anonymity, countering the use of BTG in fraud, and forcing users to pay appropriate taxes. In the US, the Commodities Trading and Futures Commission has categorized cryptocurrencies as commodities. This means that any revenue from trading BTG is taxable.
With technology advancing very fast, many countries are waiting to see the kind of laws that global leaders especially the United States, the EU, and China are going to draw before they can formulate theirs. Therefore, the moment that the first top administration passes a piece of crypto legislation, more countries are likely to follow the same approach.
Is Bitcoin Gold Legal?
Bitcoin Gold legality depends on the respective country or region. Up to date, a lot of countries have not passed laws regulating BTG. This means that you can continue trading BTG and other cryptocurrencies without worrying of getting into conflict with the law.
- The United States
- Though the United States was the first jurisdiction to note the dangers posed by cryptocurrencies, it has not installed any laws guiding their application. It is apparent that faster proliferation of cryptocurrencies will bring huge benefits to the US. The only mention that the US has provided for cryptocurrencies is through the Commodities Trading Futures Commission (CFTC). The commission explained that all cryptocurrencies should be considered as commodities. This was meant to guide users and traders make appropriate tax deductions to tax authorities.
- BTG is illegal in Ecuador. Though the country has not passed any legislation to guide use or application of cryptocurrencies, it has pointed that it is illegal to use them in the jurisdiction. The government indicated that cryptocurrencies were blocking its capability to collect taxes. Therefore, it established its own state-run electronic money and insisted that all other cryptos were outlawed. This implies that the focus of regulation was to protect its own as opposed to providing a comprehensive framework for cryptocurrency applications.
- The European Union
- The EU, like the United States, has been noncommittal to drawing cryptocurrency regulations. Though the European Central Bank has cautioned users that cryptos could end up being bubbles, the EU Parliament is keen to ensure that the benefits that come with blockchains reach more people.
- The EU is working with top blockchain networks, experts and it is also developing its crypto network. These three methods will help EU to take the right approach when drawing the crypto laws.
- Bitcoin Gold is legal in China. Since cryptocurrencies entered the globe, China has never hidden its dislike for them. Despite this, it has not passed any legislation to guide development or use of cryptos. However, the Chinese administration has always cracked down on activities thought to cause disruptions to the national government. In mid-2017, China banned ICOs (initial coin offering) in its jurisdictions. It indicated that the design and applications targeted to steal from the people.
- Such scrutiny has also been reported in other jurisdictions associated with China. In Taiwan, Bitcoin ATMs were declared illegal while Hong Kong closely monitors every crypto activity with intention of noting those that target defrauding users.
- One country that has openly declared its support for cryptocurrencies is Switzerland. The country wants to be the crypto nation. This focus has made the government become an attraction to many crypto development teams. The Swiss Economics Minister Johann Schneider-Ammann announced that the country would do everything to ensure that all benefits of cryptocurrencies become realistic in the country. Though Switzerland has never shied away from taking decisions that are not popular with neighbors, there is no doubt that the laws that will be passed in Switzerland are going to support cryptocurrency development.
- By the close of 2017, BTG and other cryptocurrencies were legal. However, the new Finance law of 2018 has included an article that illegalizes use of BTG and other cryptos. Article 117 of the law indicates that purchase, use, sale, and holding of virtual currencies are prohibited. Anyone found to contravene the law will be punished.
When the confusion about cryptocurrencies finally thaws, every administration will have its own laws to guide design, use, and application. In many cases, the laws are expected to focus on leveraging government operations especially those related to taxes.
Bitcoin Gold and Taxes
While the notion of Bitcoin Gold regulation is indeed complex, things get even murkier when it comes to taxes. For many people, the decision to join cryptocurrencies is considered a great way to avoid the tax authorities. As an anonymous cryptocurrency, all the transactions in the BTG network are encrypted to ensure that no third party can unmask the user's identity. Though it is true that you can hide from the tax authorities, the experts in the crypto industry have a different view.
When a new cryptocurrency hits the market, it introduces more advanced technologies compared to those that were in use in other altcoins. This is why tax experts are cautioning that though you might be anonymous today, the status could change in the coming years. If new crypto technology is discovered, the chances are that you risk getting exposed and being sued for tax evasion. Therefore, it is important to ensure that all revenue generated from trading BTG is considered as taxable income.
A closer look at the looming regulations indicates that most governments are targeting to enhance their capacity to collect taxes. In Israel, the government said that revenue from cryptocurrencies is taxable. This means that whether you are operating anonymously or not, you have to pay taxes. If you fail to pay the requisite taxes, the government will use all means available to get you and launch charges.
In the US, the government has clarified that BTG and other cryptocurrencies should be categorized as commodities. To demonstrate that the government is very serious about paying taxes, it has indicated that its laws will insist in checking compliance starting from 2009 when cryptos hit the market. This means that there will be nowhere to hide when the taxman finally comes checking.
Getting it right on taxes and BTG
Now that it is clear that paying taxes is important, how do you get it right when working on an anonymous network such as BTG? Here are some great recommendations you can use to stay on the positive side of the law when using BTG.
- Whether you have been holding BTG waiting for its value to grow or trading in the exchanges, the revenue you generate is taxable. Even though there might be some temptation not to pay taxes, you should do the right thing; pay taxes appropriately.
- Ensure to capture the details of the transactions well in the case you need to prove tax compliance in the future. Note that this does not mean revealing your status in the BTG network, it is simply for confirmation purposes should the need arise in the future.
- Ensure that the value of the corresponding fiat currency value at the time of trading is captured appropriately. This will help avoid a scenario where you are accused of under-representation.
- Ensure always to consult a tax expert if you have issues with taxes on crypto related operations. This is very important especially for traders who opt to use BTG as a means of payment.
Does Bitcoin Gold Have a Consumer Protection?
Bitcoin Gold does not have consumer protection. When users join the cryptocurrency network, they need to appreciate that they are on their own. This means that there is nowhere to report in the case of issues such as sending BTG to the wrong address.
When the Bitcoin Gold founder Jack Liao released the core code, he ceased being the owner. It means that every decision is now based on consensus. Lack of consumer protection is one of the major disadvantages of joining cryptocurrency networks such as BTG. The issue is made worse by the fact that you cannot run to authorities because the cryptocurrency is not regulated. To be assured of operating securely, here are five things you can do.
- Never share the private keys with anyone.
- Always store the BTG coins in cold storage when not in use.
- Consider designating a specific computer only for BTG related transactions.
- Select the cryptocurrency exchanges with a lot of care. This is very crucial because the exchanges are considered easy targets by hackers.
- Ensure that your computer and BTG client are always updated.
- Backup the BTG wallet and recovery seed phrase.
Illegal Activities with Bitcoin Gold
The architecture of Bitcoin Gold cryptocurrency network is to facilitate peer2peer operations when making payments. Because the network also operates as a completely anonymous system, it is very easy for criminals to hide in it. Since Bitcoin Gold was launched, it became a subject of attacks as cybercriminals targeted its system. One such illegal activity targeted Bitcoin Gold early enthusiasts with a fraudulent wallet. The mybtgwallet that was marketed as the main wallet for Bitcoin Gold was designed to steal from users. Though it was discovered early enough, more than $3 million in BTG coins had been lost.
Is Bitcoin Gold Secure?
The Bitcoin Gold protocol and advanced cryptography make the network one of the most secure cryptos in the industry. Though Bitcoin Gold suffered a series of attacks, the development team explained that they managed to fix the issues in the core code that was making it easy for attackers. The proactive approach adopted by the network team appears to have yielded results because no more attacks were reported by early 2018 after the attack of 26th November.
The main security methods employed at Bitcoin is encryption. One, every transaction and its details are encrypted to ensure that no third party can tell the actual persons involved. Even the nodes spread in the BTG network can only confirm the details. When this advanced cryptography is applied together with SHA-256 Proof-of-work algorithm, it implies that no single party can marshal over 50% of users in the network and conspire to harm the network.
Though the Bitcoin Gold development team is always working towards enhancing the security of the system, the early attacks on the network cast a lot of doubts. This means that you need to be extra careful when using the network to avoid losses. You can enhance this security by always ensuring the Bitcoin Gold client is updated, selecting the trading exchanges with a lot of care, and keeping the coins in cold storage.
Is Bitcoin Gold Anonymous?
The architecture of Bitcoin Gold targets ensuring that all users can send and receive money in total anonymity. To ensure that no one can get the details of your details when using the network, the Bitcoin Gold system encrypts all transactions immediately they are flagged off. Even the miners spread in the network can only confirm the details without knowing personal details
The fact that Bitcoin Gold was designed to address the issue of centralized mining in Bitcoin means that the emerging issues of privacy have not been resolved. Once you use the Bitcoin or Bitcoin Gold network to make transactions, it is still possible to for a tech expert to follow back the transactions and unmask the users. However, this can only be achieved using advanced technology.
Has Bitcoin Gold Ever Been Hacked?
When investors target joining a new network, they are first interested in knowing how secure the network is from attacks. They want to be sure that their coins stored in the network or being traded in various platforms will not be lost. Bitcoin Gold has been a victim of multiple attacks. A few days after the launch, Bitcoin Gold suffered from a distributed denial-of-service attack. The problem occurs when the attacker overloads the server with requests forcing it to crash. But this only marked the start of a series of attacks that were targeted at the new crypto.
On 20th of November in 2017, about one month after the first attack, the second attack was foiled. One of the Bitcoin Gold wallets, mybtgwallet, which was being marketed very aggressively, was found to be fraudulent. Though the wallet was scrapped, the damage had already been done. About $3.3 million worth of Bitcoin Gold were lost.
On November 26th, about six days after the second attack, Bitcoin Gold issued a warning about two suspicious files that showed up in the windows wallet installer. The warning stated that any person who had already downloaded the files should delete them immediately or wipe the computer. The warning further instructed that users should remove access to cryptocurrency wallet from that specific machine.
These attacks were linked to growing attention that Bitcoin Gold was attracting and stealing the show from other cryptos. The founders of other cryptos, as well as their communities, felt that Bitcoin Gold had come too soon and was already gaining much ground. It could reach the level of Bitcoin faster than them.
How Can I Restore Bitcoin Gold?
When people lose their BTG; can they be restored? Yes, you can restore the BTG in some situations. To put it differently, the ability to restore BTG depends on the method of loss and personal preparedness. After spending a lot of time mining BTG or buying directly from the exchanges, waking up to the news that the coins have been lost can be very painful. Here are the steps you can use to recover the lost BTG.
- Loss of BTG through hacking. If your BTG coins were lost through hacking of your core client, computer, or an exchange, there is no way to recover them. They are lost forever.
- Loss of BTG through loss of the wallet. If you lost BTG coins through loss of the crypto wallet, they could be restored by reinstalling a backup wallet. You can also download another compatible wallet or BTG client and reconcile it with the main network using the private keys.
- Loss of BTG by forgetting the private keys. If you forgot the private keys of your BTG wallet, you have to get the keys back. You need to use the seed phrase that the wallet generated when you acquired the wallet. The recovery seed phrase can be used on the same wallet or another compatible wallet to generate the private keys.
To make recovering BTG easy, you have to make it a priority from the first moment on of using the network. You need to ensure that the private keys are carefully secured, and a recovery seed phrase protected away from the computer. Consider storing the recovery seed phrase in a safe such as a bank. Besides, you should keep the computer and wallet updated all the time to lower the risk of intrusion.
Why Do People Trust Bitcoin Gold?
Since Bitcoin Gold launched, the trust that people have in the network is overwhelming. Many people have expressed optimism that BTG will ultimately grow their investment with a huge margin. Here are some of the things making people to trust BTG.
- The crypto is associated to Bitcoin.
- The growth that Bitcoin achieved between 2009 and 2018 is enviable. Because Bitcoin Gold is associated with BTC, people are expecting it to follow the same trajectory reported in the BTC network. Only time will tell whether this growth will be realized or not.
- The BTG network is better than that of Bitcoin.
- BTG was designed to address the problem of centralization reported in the original Bitcoin. This means that Bitcoin Gold is actually better. Therefore, they can only expect BTG to grow faster and perform better than Bitcoin.
- BTG is a new crypto in its infancy.
- The path followed by cryptocurrencies starts at a tender age when the core code is relatively feeble and price very low. Then, adjustments are made, and the value continues to grow over time. As a new and young cryptocurrency, many people see BTG as a perfect opportunity to join the network and grow with it.
- When BTG entered the market, it was a thud that shocked the entire crypto community.
- While hundreds of cryptocurrencies entering the crypto world begin with a very small value, BTG was completely different. It hit the market with a piece tag of over $400. Though this later adjusted downwards to a range of $190 to $150, investors indicate that BTG has demonstrated it is exemplary and will grow to levels higher than those of BTC.
- The lead team members associated with BTG are very tech savvy.
- After being associated to ASIC mining equipment design for years, Jack Liao is considered one of the best minds that the market can anticipate. The investors are relying on this tech team for smooth growth of interest, community, and value of BTG.
- The BTG founder is not anonymous.
- In most cryptocurrencies, the founders rarely accept to open up. In fact, most of them take pseudo names that mask their identities completely. However, Jack Liao, the founder of BTG is not anonymous. This openness makes people appreciate that they are dealing with human beings and developing a lot of trust in it.
History of Bitcoin Gold
Though Bitcoin Gold is very young after entering the market in October, its history goes back to the roots of the mother network; Bitcoin. As a fork of Bitcoin, it simply means that BTG is Bitcoin but with some slight variations. Therefore, this highlight will capture key events in the Bitcoin timelines and extend through to BTG.
- In 2009, Satoshi Nakamoto launched Bitcoin as the first blockchain based network. This opened the door for later altcoins such as Bitcoin Gold.
- Between 2011 and 2012, Bitcoin suffered numerous indirect attacks as people’s coins were stolen during major scandals such as the Mt. Gox Bitcoin Exchange hacking and the Silk Road Scandal.
- In 2013, stores such as Pizza Hut started accepting Bitcoin as a method payment. It was also in 2013 that Bitcoin value first touched the $100 mark.
- In 2016 and early 2017, concerns started emerging about Bitcoin scalability and centralization. The impact was the first Fork that resulted to the formation of Bitcoin Cash in August of 2017 to address the problem of scalability.
- In October of 2017, Bitcoin Gold was launched as the second fork of Bitcoin to help address the problem of centralized mining. The Bitcoin and entire cryptocurrency community became very concerned that mining BTC had become very expensive because only those with expensive ASIC equipment could afford it. This is the problem that BTG was designed to solve.
- One month after the launch, BTG supporting wallet referred as mybtgwallet was discovered to be fraudulent. It was closed from the network, but a lot of BTG had been lost.
- When Bitcoin Gold was launched, its price was about $450. This price took a downward shift before stabilizing within the range of $90 and $150. However, more people see a lot of potential in BTG because of its unique design and commitment of the lead team to update the core code progressively.
Who Created Bitcoin Gold?
While the most notable thing about BTG is that it is a fork of Bitcoin, the man who came up with the idea is Jack Liao. Liao is a great name in the cryptocurrency community because of his association to ASIC mining equipment.
Therefore, who exactly is Liao?
Jack Liao is the founder and CEO of Lighting ASIC. This is a company that focuses on making Bitcoin mining equipment. Liao became concerned that mining at Bitcoin was only becoming an affair of the super-rich who could afford the expensive mining equipment.
However, the crypto community was fast to criticize his move on the fork indicating that he created the situation by manufacturing the expensive ASICs and now wanted to benefit from the scenario. But Liao was emphatic that even in the previous fork that gave Bitcoin Cash, there was no consensus.
The commitment of Liao to ASICs has made people joining the Bitcoin Gold network to have faith that it will grow with time to reach the level of Bitcoin. Liao, unlike other cryptocurrency network founders, is available and even shares personal views on social media. This openness has helped to grow the trust that people have on the BTG network.
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