Bitcoin Gold: everything you should know

Learn about Bitcoin Gold, its purpose and check the list of supporters and those, who refuse to support it
23 October 2017   1757

What is Bitcoin Gold?

According to official website, Bitcoin Gold is a fork of the Bitcoin blockchain that will occur on October 25, 2017 at block 491407. At the predetermined block height, Bitcoin Gold miners will begin creating blocks with a new proof-of-work algorithm, and this will cause a bifurcation of the Bitcoin blockchain. The original Bitcoin blockchain will continue on unaltered, but a new branch of the blockchain will split off from the original chain. The new branch is a distinct blockchain with the same transaction history as Bitcoin up until the fork, but then diverges from it. As a result of this process, a new cryptocurrency will be born. Founder of Bitcoin Gold is Jack Liao, CEO of LightningASIC, big minning pool. 

It is also worth noting that Bitcoin Gold (BTG) initial coin distribution method is exactly the same as that used by Bitcoin Cash (BCH). According to official website, all Bitcoin holders who possess BTC private keys on the October 25 (block 491 407) will receive Bitcoin Gold on the rate of 1 BTC = 1 BTC (If you have 20 BTC you will receive 20 BTG). You need to control BTC private keys in order to make Bitcoin Gold transactions. Learn more here

What is the purpose of Bitcoin Gold?

As developers assure, the purpose of Bitcoin Gold is to make Bitcoin mining decentralized again. Satoshi Nakamoto’s idealistic vision of “one CPU one vote” has been superseded by a reality where the manufacture and distribution of mining equipment has become dominated by a very small number of entities, some of which have engaged in abusive practices against individual miners and the Bitcoin network as a whole. By changing Bitcoin’s proof-of-work algorithm from SHA256 to Equihash, all of the specialized SHA256 mining equipment will be obsolete for mining the Bitcoin Gold blockchain. Thus, Bitcoin Gold will provide an opportunity for countless new people around the world to participate in the mining process with widely-available consumer hardware that is manufactured and distributed by reputable mainstream corporations. A more decentralized, democratic mining infrastructure is more resilient and more in line with Satoshi’s original vision.

Who supports Bitcoin Gold?

  • Bittrex (will charge BTC holders with BTG, put will not support BTG trade)
  • YoBit
  • HitBTC
  • BitStar
  • BitBay
  • Coinomi
  • Freewallet
  • Guarda
  • bitFlyer
  • Coinnest
  • Minergate
  • Paribu
  • Abucoins
  • Beatcoin
  • Bitcoin India
  • Server Power
  • Nibiru
  • MinerTopia
  • Minning Speed
  • Bitfinex

Who doesn't support Bitcoin Gold?

Who remains uncertain?

  • Coinbase

TREZOR: Bitcoin Gold’s codebase is incomplete

Satoshi Labs, the makers of the hardware wallet TREZOR, make a statement about the upcoming Bitcoin Gold fork. The company claims that it will not support Bitcoin Gold yet, as Bitcoin Gold’s codebase is, at the moment of the writing, "incomplete" and "lacks replay protection". Still, Trezor team highlights that if there are any Bitcoins held on TREZOR before the block, the customers will have the same Bitcoin Gold balance as their Bitcoin balance. 

Japanese bitFlyer to support Bitcoin Gold completely

Japan’s largest and best-funded Bitcoin exchange, bitFlyer, is going to support the new cryptocurrency. As detailed, bitFlyer is to distribute Bitcoin Gold (BTG) to users prior to the split of the Bitcoin blockchain, as well as to launch trading services in support of the new cryptocurrency, enabling users to sell, deposit and send BTG from their bitFlyer accounts. Bitcoin Gold withdrawals and deposits will be enabled by the exchange “after sufficient observation of the stability in the BTG chain after the split”.

Poloniex refused to support Bitcoin Gold

According to official statement of cryptocurrency exchange, BTG won’t be supported unless it had implemented replay protection. They also urged their users to be immensely cautious of any token that expects to be given private keys that control value on another blockchain. Poloniex note that this is dangerous and unnecessary, even for an alt like BTG that seeks to distribute tokens using the state of an existing blockchain.

Coinbase doesn’t plan to charge BTG to users at this stage

Coinbase confirmed its position on Bitcoin Gold hardfork, saying that at this stage it does not plan to charge BTG coins to users, but it will be ready to do as soon as “blockchain proves to be secure and valuable”.

Bitfinex assigned Bitcoin Gold to users

Bitfinex cryptocurrency exchange has finished the BTG snapshot & have assigned BTG to users with a BTC balance at the time block 491406 was mined.

Jaxx and ShapeShift reject Bitcoin Gold

Jaxx, the popular multi-currency crypto wallet and the ShapeShift platform are not going to support Bitcoin Gold due to the lack of  fully formed consensus code, as well as the lack of implemented replay protection. Jaxx, however, is “monitoring the situation closely and with great interest”.

Coinbase changes its mind

Now Coinbase makes a statement clarifying that it will call “Bitcoin” the chain with the most accumulated difficulty, while letting the market to decide. 

Bitcoin Gold implemented replay protection

Bitcoin Gold team finally fixed one of the biggest issues of BTG - according to official Twitter, replay protection is fully implemented.

Stay tuned and you will be the updated with latest news about upcoming Bitcoin Gold fork.

664k BTG Split & Moved For a First Time

This event can have huge impact on the Bitcoin Gold price
22 February 2018   232

On February 20, an unknown user released 664,000 BTG coins that had been lying motionless since the launch of the Bitcoin Gold network last fall. This could lead to the largest one-stage increase in the BTG market for the whole short history of the existence of the "new digital gold". This is reported by CCN.

Bitcoin Gold crypto currency was formed as a result of the harsh press, held on October 24 last year. The network wasn't launched immediately, but several weeks after the completion of the premiere.

The holders of bitcoin have the opportunity to obtain an equivalent number of BTG coins. Many hastened to take the necessary action to obtain new coins in the first weeks. However, in all likelihood, not all holders of large amounts in the crypto currency have done this.

Below is a graph that illustrates the dynamics of obtaining BTG coins by bitcoin holders (forks. network):

Amount of coins moved on each side
Amount of coins moved on each side

One of the engineers of the Blockchain, who created the, connects this transaction to the bitcoin-service Xapo. In his opinion, the action was committed on the initiative of one of the institutional clients of the popular service.

It remains a mystery why this unknown cryptoinvestor did not extract the BTG coins before and did not sell them when the Bitcoin Gold market rate reached a mark above $ 400. Currently, the weighted average rate of BTG is around $ 125.

Bitcoin Gold crypto currency can not now be called a highly liquid altcoyin. According to the volume of market capitalization, the coin is on the 20th place of the Coinmarketcap rating, and the daily trading volume of BTG hardly exceeds $ 40 million.

The current value of the above 664,000 coins is $ 82.7 million. Thus, the sudden release of Bitcoin Gold coins to the market is unlikely to have a positive effect on the course of this relatively young crypto currency.