Bitcoin Gold: How to get, keep and secure it?
Bitcoin Gold, what is it?
Bitcoin Gold is the latest declination of Bitcoin. It has been developed by Jack Liao. This new currency is intended to be a store of value even more effective than Bitcoin. Its creator, Jack Liao, who is none but the CEO of LightningAsic, wants to achieve this goal by solving the issue of centralization of minors through a modification of the “proof of work”. To achieve this, a “hard fork” was needed.
According to Crypto-France, “a hard fork occurs when the blockchain splits in two, under the impetus of a fundamental change in the rules that govern the system. This rule change allows new blocks to be created on the new chain – blocks that are incompatible with the old one.“
The algorithm used for this task is called “Equihash”, a “memory-hard” work proof, which is highly resistant to ASICs and has already been used by ZCash. The idea here is to allow users to extract money with graphics processors (GPUs).
So how do you get that famous Bitcoin Gold?
The first thing to remember here is that since October 25th, the hard fork needed for the coming of Bitcoin Gold has already been set. And it was on this same date that all those who had Bitcoins (BTC) – in addition to exclusive control over their private keys – had received an equivalent amount of Bitcoins Gold (BTG) in their “wallet”, as it is said in the jargon. For example, if you were owning 100 Bitcoins in your wallet, then you end up with your 100 Bitcoins in more than 100 pieces of Bitcoins Gold.
Since then, all those who are interested in purchasing Bitcoin Gold must either acquire it on a cryptocurrency market, or exploit it from their own computer hardware (GPU), or win it by exchanging their goods and services. For any transactions (buying or selling Bitcoin Gold) from your wallet, here are some of the best platforms: Coinbase, Bitfinex, Okex, or HitBTC.
How to protect your Bitcoins wallet?
Having Bitcoins or Gold Bitcoins is nice, but better still to be able to secure them safely, because we are never too safe from piracy or a digital scam. This is evidenced by the recent 3.3 million euro fraud suffered by several Bitcoins Gold holders just few weeks after the fork. Indeed, the website MyBTGWallet.com owners (a hacker site) asked them to give their private keys to create a Bitcoin Gold wallet. Based on this information, the hacker site owners accessed the crypto-currencies which they transferred to new addresses, leaving their victims only their eyes to cry.
To avoid this hopeless experience, here are some precautions to take:
Save your private keys or “seed phrase” and protect them with a strong password
Never and under no circumstances disclose your private key
Keep in your wallet only small sums for current expenses
To save money in your wallet, opt for cold wallets whose keys are stored offline.
Another safer practice is to use a hardware wallet. Several choices are available in this case. It include ledgerwallet.com, Goochain Citadelle, bitcointrezor.com and choosecase.com.
Does this new cryptocurrency have a future?
It is still early to answer this crucial question, but in the frame of a few months, Bitcoin Gold ranks as the third declination of the original Bitcoin. However, some experts are somewhat skeptical about the future of Bitcoin Gold. Indeed, many of them question the ability of BTG to become a significant currency. While the main goal of the BTG is to solve the issue of minors centralization, Tim Enneking, Managing Director of Crypto Asset Management, said that this goal may never be achieved. “Minors control far too much space for Bitcoin Gold to be successful – at least in the short term,” he told according to Forbes magazine.
In addition, shortly after the hard fork, there were numerous attacks to prevent the platform from running, and several users reported problems connecting to their network; all things that are not likely to attract and retain potential investors.
In addition, one of the major issues with regard to cryptocurrencies is whether one day these famous virtual currencies will take the place of the classic currencies currently in use. To this end, and as part of the Independence 20 Years conference organized by the Bank of England in September 2017, Christine Lagarde, Executive Director of the International Monetary Fund (IMF), said: ” For now, virtual currencies such as Bitcoin pose little or no challenge to the existing order of fiat currencies and central banks. Why? Because they are too volatile, too risky, too energy intensive, and because the underlying technologies are not yet scalable. Many are too opaque for regulators; and some have been hacked. But many of these are technological challenges that could be addressed over time.”
She went on to say, “Citizens may one day prefer cryptocurrencies.”