Before choosing Bitcoin Gold (BTG), consider that cryptocurrencies have very different use cases. The most popular of these are:
- Cheap and fast money transfer
- Private transactions
- Decentralized data storage
- Programmable money
Due to the vast differences in use, you should also understand the function of Bitcoin Gold before participating or investing in its network.
What is Bitcoin Gold and how does it work?
The operations of Bitcoin and Bitcoin Gold are very similar to each other. The system of both currencies is essentially decentralized. In addition, all transactions are transparently stored on the blockchain.
How it all started – History of Bitcoin Gold
Electric Coin Company had a Proof-of-Work algorithm developed based on a parameter set for the implementation of the digital currency project. BTG modified it and adopted a set of parameters. The extended algorithm known as Equihash-BTG requires more memory than the original. In May 2018, a 51 percent attack hit BTG, exposing the blockchain of the Bitcoin Gold ledger to manipulation. The attackers stole about $18 million from numerous cryptocurrency exchanges, prompting Bittrex to delist BTG. BTG suffered the same attack again in January 2020, and the company released version 0.17.2 to mitigate future attacks.
Who is behind BTG?
Bitcoin Gold was founded by a team of six experts led by Jack Liao. The co-founders currently involved in managing the organization are:
- Martin Kuvandzhiev,
- Franco Niebles,
- Alejandro Regojo and Robert Kuhne.
The board makes strategic decisions with the support of a team of more than 20 experts, including co-founders and advisors. The commitment of the founders ensures that the team continues the original mission and embraces innovation.
Bitcoin Gold Mining – How are new coins created?
BTG used the Equihash algorithm to match output capacity with storage capacity. It also protects the network by imposing a specific workload on miners. Through this mechanism, they use their computing power to achieve the required mathematical difficulty.
Is bitcoin gold a type of money?
Contrary to popular belief, some cryptocurrencies cannot be used as money. Many are designed as utility tokens, while others are intended only for use in their networks.
Many merchants accept BTG payments. If you want to redeem them, visit the official website and create your wallet. When you present your customers with a request for the amount to be paid and your BTG address, they can send you the money in Bitcoin Gold within 24 hours.
Unlike many fiat currencies (FIAT), BTG is a global digital currency. You can use it anywhere you have access to the Internet. In addition, you can hold it in a portfolio when market conditions are favorable to increase its value.
If you intend to exchange the currency for your local e.g. FIAT type, use one of the many cryptocurrency exchanges to achieve this goal. Bitcoin Gold is also a decentralized digital currency. You can transfer it to other users in the Peer-to-Peer BTG network, without interference from intermediaries or a central bank.
Where is BTG used?
More than 100 countries recognize BTG as a viable alternative payment method. Many governments have enacted laws and policies regulating the use of digital currencies.
Some nations are concerned that organizations that issue digital currencies, such as Bitcoin Gold, are not regulated. However, they allow their citizens to carry out such transactions to reap the benefits of investing in cryptocurrencies.
Countries such as New Zealand and the Netherlands have legalized the use of cryptocurrencies. The application of the law depends on whether the currency is a managed investment product, a debt security, a derivative or a security. Israel, Bulgaria, Switzerland, Denmark and the United Kingdom are some of the countries that have fully accepted cryptocurrencies into circulation.
What do people use bitcoin gold for?
As it was mentioned above, Bitcoin Gold is like standard Bitcoin. It provides an amazing platform for cryptocurrency transactions, research and improvement. It also serves as a currency. BTG is an acceptable payment method for transactions of goods and services, and also as an investment. You can access the currency on digital asset markets to buy and sell it as an investment product.