Is Bitcoin Gold a good thing or a bad thing for BTC?
Bitcoin recently experienced a fork as the newly-created Bitcoin gold emerged. It has plunged to a low of $5,374.60 weeks ago then recovered nearly $300. Anyone who owns Bitcoin at the time of the split should get the equivalent in Bitcoin Gold for free.
So how did “Gold” enter the picture? A “fork” happens whenever a cryptocurrency undergoes a split and paves the way to another cryptocurrency. The most recent Bitcoin fork happened back in August when Bitcoin Cash was created to meet the demands of BTC’s scaling issues. As for the new Bitcoin Gold, it seems that it is keen to re-decentralize the mining of Bitcoin.
How is Bitcoin Gold Trading So Far?
In a nutshell, people who own Bitcoin will receive Bitcoin Gold. It’s being issued at the rate of 1 Bitcoin Gold to Bitcoin. According to Coinmarketcap Data, the price of Bitcoin Gold has dropped to over 66 percent and trading at $161 per coin. Investors had a lack of faith in the new cryptocurrency which resulted to a sell-off.
Cryptocurrencies Bitcoin and Ethereum took a hit when Bitcoin Gold trended but recovered after Wednesday. The newly-created Bitcoin Gold has experienced teething issues in the first few hours when it started to surface. Bitcoin Gold’s website has encountered a distributed denial-of-service attack due to an overload of requests. Major cryptocurrency exchanges have also yet to start trading Bitcoin Gold.
Will We Reap the Benefits of Bitcoin Gold?
The BTC system is fueled by the blockchain technology. User transactions are compiled into “blocks” which are converted into complex math solutions. Miners enter the picture to work on these solutions and check if the transaction is valid or feasible. The miners ascertain if the puzzle or solution is correct. Miners are rewarded with Bitcoin once a transaction is approved. However, mining work isn’t a stroll in the park, miners use high-powered computers to determine the validity of transactions.
There is a need for advanced machinery to mine Bitcoin. Today, only a handful of people own these powerful mining computers – It’s why Jack Liao came up with Bitcoin Gold. Liao owns LightningASIC which sells mining equipment. Jack Liao could be right if he thinks that btc gold is a gamechanger in the cryptocurrency world.
The idea here is that it can be mined by more people using less advanced and expensive computers. Bitcoin Gold is set to go live this weekend. The repercussion would be a network decentralization which will open it to a broader user base.
Do we benefit from this decentralization? Let’s wait and see.