Posts Tagged ‘BTC fork

Earlier this month we have told you about the upcoming Bitcoin fork called Bitcoin Gold (BTG), but now just a couple of days before it actually happening there are much more details than at the initial announcement. There are still quite a few things that are not clear yet, but the user interest in this fork is growing and that is no wonder when users holding BTC will be getting the same amount of BTG on October 25 when the fork is expected to happen. Bitcoin Gold (BTG) forks at block 491407 where a snapshot of the Bitcoin blockchain will be made in order to credit Bitcoin holders with their Bitcoin Gold coins (the same amount of BTC they hold will be available in BTG). Bitcoin Gold promises replay protection, meaning that after the fork occurs the two networks will continue to function independently form each other and transactions of coins in one of them will not affect the other one.

One of the most interesting things about the new Bitcoin Gold (BTG) is that after forking from Bitcoin it will adopt a different mining algorithm and the chosen one is Equihash (the one introduced by ZCash), so the new coin will be mineable with video cards and not ASICs. This is what is essentially getting the attention of the many GPU miner out there that do not have any or just a little ASIC mining power. This is essentially eliminating the large ASIC mining farms from able to mine the coin as there are currently no known ASIC miners available for the Equihash algorithm, though it still cannot do anything about any large GPU mining farms and such also exist similar to the big ASIC mining farms. Still smaller GPU miners will be able to get into the mining of Bitcoin Gold (BTG) even with one video card, something they are not able to do with Bitcoin anymore.

There are still thing that are not clear about the fork such as what exchanges will support it and will credit the users holding Bitcoin with BTG after the fork. Some exchanges like HitBTC and Yobit, along with a few mining pools, have expressed their will to support Bitcoin Gold. The biggest and most used Bitcoin exchanges however are still to come out with official statements regarding the fork, so the best thing is to hold your Bitcoins in a local wallet where you have full control over the private key in order to be able to claim BTG coins after the fork. The exchanges are probably waiting to decide based on user interest as well as to see if the fork will be successful and problem free and come out with statements after that or their users may force them to.

The things that are not getting too much attention are mostly centered around the final specifications of the coin that are not very clear. For example the initial announcement mentioned tat the Bitcoin Gold (BTG) fork will have 16000 blocks premined with 12.5 BTG reward for each (200000 BTC coins) that will be sold to ICO investors, though the official project website does not talk about that at all. The fact that the BTG is capped at 21 Million coins just like Bitcoin and adopts 10 minute lock time, just like the original BTC, 12.5 BTG current coin reward?, halving every 4 years maybe? and so on… Since there have been already 16.6 Million BTC mined with a total of 21 that leaves less than 4.5 Million coins left to be mined over a very long period of time. All of these kinda leave a big question mark about the mining part of BTG and as we’ve explained there are still important things that are not very clear just a few days before the fork happening.

Visit the official website of the Bitcoin Gold (BTG) project here for more details…

There is apparently another upcoming Bitcoin fork that is named Bitcoin Gold (BTG). This community-activated hard fork of BTC will result in the new asset becoming available for the owners of Bitcoin that hold their Bitcoins on October 25th where the snapshot of the Bitcoin will be taken as a base. So you will get the same amount of Bitcoin Gold (BTG) as you have had in BTC on the day of the Bitcoin blockchain snapshot being taken. The more interesting aspect of this new fork however is that it is not another Bitcoin Cash type of fork that essentially uses the same kind of PoW as Bitcoin and can be mined with ASICs only, instead the BTG fork will use Equihash as a mining algorithm thus making it a GPU mineable coin. Do note that the team has already warned that Bitcoin Gold (BTG) aka Bgold, the upcoming community-activated hard fork of Bitcoin, is not associated with (XBG) BTCGOLD as apparently some people might mistake the two. It is definitely something interesting to keep an eye on, though for the moment there are not that much details available.

Visit the official website of the Bitcoin Gold (BTG) project here for more details…

Bitcoin Cash (BCC or BCH depending on the exchange) has successfully forked yesterday around the planned time, but things are still moving slow. Some of the exchanges such as Bittrex and Kraken were pretty quick to respond in crediting users with BCC/BCH coins and launching trading. The increased demand and high volatility however is still causing issues for some exchanges such as Kraken that apparently is having trouble with their infrastructure handling the load. Still most if not all exchanges that started supporting Bitcoin Cash and offer trading have not yet enabled deposits from local wallets. Even if they do at the moment, it could still take a day for a transaction to be confirmed and be credited in the exchange. We still need to wait a bit more for the difficulty of BCC/BCH to adjust to the significantly lower hashrate and the blocks to start moving at a faster pace as they are currently taking a lot of time, much more than just 10 minutes per block.

The price volatility of Bitcoin Cash is very likely to continue as there is a lot of speculation and actually not that much coins in circulation in exchanges. It seems that quite a lot of people proffered to keep their BTC and get BCC/BCH with a local wallet where they have full control over the private keys and the coins inside. This means that the coins in exchanges will remain less than apparently the demand there is at the moment, but as soon as deposits to exchanges are allowed the Bitcoin Cash price may start a downward trend. This is especially true if most people do what they were planning – namely dumping the “free” BCC/BCH coins they have received for BTC or other altcoins. Still, we are yet to see what is going to happen as things may end up very different than what some people expected or planned. We are still in favor of Bitcoin (BTC) over any forks such as Bitcoin Cash (BCC/BCH), but the new fork is already getting decent support and slowly building momentum.

If you take a look at the coin market capitalization, then you might be surprised that the market cap of Bitcoin Cash (BCC/BCH) is already at almost 8 Billion USD and that is placing the currency as number 3 in terms of capitalization. BCH is just after Bitcoin (BTC) and Ethereum (ETH) in terms of market capitalization, but that is the situation at the moment and with the high price volatility things could change at any moment. Ripple (XRP) is not that far behind on the 4th place at the moment, so even a slight change in price may cause BCC/BCH to lose its 3rd place. Litecoin (LTC) is number 5 and it is with much smaller market cap in order to take one of the higher places. Anyway a significant price correction with deposits enabled on crypto exchanges and much higher trading volume of Bitcoin Cash could as well shake things up or down significantly, so be prepared for this as well.


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