If you were holding Bitcoin on the 25th October you will now be holding an equal amount Bitcoin Gold! Very similar to the Bitcoin Cash hard fork earlier this year you will soon be able to claim your Bitcoin Gold!
So what is Bitcoin Gold?
It is a new cryptocurrency or alt coin considered complimentary to Bitcoin. The team behind Bitcoin Gold took a snapshot of the blockchain to create Bitcoin Gold at block 491,407.
From here a new branch of the blockchain has been created resulting in the new cryptocurrency. By November 1 the cryptocurrency – Bitcoin Gold is scheduled to become publicly available.
So who created Bitcoin Gold?
Surprisingly it is quite a small team consisting of Jack Liao – CEO of LightningASIC, an anonymous developer and a handful of volunteers.
So what is the purpose of Bitcoin Gold other than giving Bitcoin holders some more free $?
The algorithm used by Bitcoin (SHA-256) is dominated by Chinese ASIC miners. If we take a look deeper into this, the equipment used to mine is now far too expensive for individual people. This resulted somewhat in the centralization of Bitcoin mining which many will agree goes against the original intention of Bitcoin.
The developers of Bitcoin Gold have implemented a new algorithm-Equihash. This will make it possible for individuals to mine with affordable graphics cards, or even your own computer.
However, in saying that one can’t be certain about the real intentions behind the creators of Bitcoin Gold. As mentioned the founder Jack Liao is the CEO of a company that produces cryptocurrency mining software including GPU units. So interpret that as you will.
Bitcoin Gold and the Price of Bitcoin?
Like almost everything in the Bitcoin space predicting the price is near impossible. However the exchanges have caught up to the forks or airdrops and now have futures markets and tokens that people can trade before, during and after the creation of altcoins. Interestingly if we look back at the previous forks and consider their effect on the price of Bitcoin we needn’t worry. In fact after the Bitcoin Cash hardfork the sum of both Bitcoin and Bitcoin Cash was significantly worth more than Bitcoin before the fork.
How is Bitcoin Gold different from Bitcoin, Bitcoin Cash and the upcoming Segwit 2x
As mentioned earlier the key difference is in the ability for individuals to mine through affordable GPUs. So ultimately not a huge difference and the utility really doesn’t offer anything huge that makes it worth anywhere near what Bitcoin is in my opinion. In saying that even if it is valued at a fraction of Bitcoin, who can complain about free money?!
The following image highlights the key differences across different Bitcoin forks.