You probably might have heard of the recent buzz about bitcoin gold in the world of cryptocurrency and probably searching for more information about bitcoin gold.Well, I decided to create this guide for those searching for more information on what bitcoin gold is and how to get free btcgold.
To start with, let learn more about Bitcoin Gold (BTG)
What is Bitcoin Gold?
Bitcoin Gold is an attempt to make Bitcoin truly decentralized again by making mining easier for everyone through a change in proof-of-work. The Bitcoin Gold project is led by Jack Liao, CEO of LightningASIC, a Hong Kong-based bitcoin mining firm
Why Bitcoin Gold is being created?
Bitcoin as a decentralized currency (one which is controlled by everyone) was very easy and profitable to mine back in the early stage, but things changed with time. Lots of people were involved in mining at the early stage as you could easily mine bitcoin using CPUs and GPUs but as bitcoin grew in popularity, mining difficulty increased exponentially which lead to the usage of ASIC Miners which are more expensive, faster and more efficient than compared to GPU graphics card.
The present network, ASICs produced by companies such as Bitmain and Bitfury can mine Bitcoin around 1 million times faster per second than a standard computer.
Over the years, bitcoin mining has switched to the hands of those who could afford and huge mining pools took control of the market.
let’s take a look at the market share of some of the most popular mining pools
|Mining pool market share -click on image to expand
From the graph above, you can spot the big players in the market: Antpool controlling 19.5% of the market, BTC.TOP -15.6%, ViaBTC – 10.75%, BTC.com -10.2% , F2Pool -9.3% , BTCC -Pool 6.8% and others controlling below 5%.
Now the question is, do you see any decentralization in that?
How does bitcoin gold intend to upset this?
Bitcoin Gold has decided to introduce an algorithm to the Bitcoin network rather than the normal bitcoin SHA 256 Algorithm; that will make it impossible to mine with the more expensive ASIC graphics cards (the ones used to mine Bitcoin).
The proof-of-work that they’ve chosen is Equihash
, a memory-hard algorithm that’s fairly ASIC resistant and currently been used by ZCASH.
Let’s not get into all these techy stuff, I hate it as much as you do. let’s make it as simple as possible.
In summary, This will allow everyone to easily mine Bitcoin Gold with a very basic GPU graphics card.
When is it happening?
Bitcoin gold hard fork is expected to take place on 25th October, There is a general consensus that this will be the date that the block 494,784 will be mined and the new version of the currency scheduled to be in operation by the start of November.
Save the date
How to claim your free Bitcoin Gold
If you have Bitcoin on Coinbase or any other purchasing/exchange platform, move it by creating a wallet in which you have control over private keys for your Bitcoin and transfer the coins to that wallet.
In order to claim your free bitcoin gold, you need to have you bitcoin in a wallet where you have access to your private key
One of the best methods for this is a paper wallet
BITCOIN GOLD WALLET
1. To generate a new bitcoin address, open BitAddress.org in your browser
2. BitAddress will ask you to create some randomness by either randomly typing characters into the form or moving your cursor around.
3. You will be presented with your public and private keys and their respective QR codes. Do not scan these.
4. Click the ‘Paper wallet’ tab.
5. Select the number of addresses to generate.
6. If you don’t wish to keep the bitcoin artwork, click the ‘Hide art?’ button.
7. Click the ‘Generate’ button to create new wallets.
8. Once the wallets are generated, click the ‘Print’ button to make a hard copy.
9. Your browser will ask you to select the printer you wish to use. In the case of Google Chrome, you may also save the page as a PDF file.
10. Make a note of the public addresses, or scan the public address QR code in your bitcoin app (Coinomi, Mycelium, Copay, Electrum) and start depositing funds.
Do this, and you will be credited with 1 Bitcoin Gold for every Bitcoin you hold. If you hold 0.5 bitcoin, after the hardfork your bitcoin gold wallet will be credit with 0.5 bitcoin gold.