Bitcoin Gold Hard Fork
Everything about the Bitcoin Gold Hard Fork
Introduction Bitcoin Gold Hard Fork
It was a mere 81 days ago that the Bitcoin Cash Hard Fork occurred, and here we are again, awaiting the coming of the Bitcoin Gold Hard Fork. Of course, there is yet one more planned Hard Fork coming in late November, with the Segwit2 Implementation, as well. The last Hard Fork that brought us Bitcoin Cash also left many people scratching their heads with confusion, questions, concerns and bewilderment.
This easy to follow and understand guide will help you to be prepared for the coming Bitcoin Gold Hard Fork. The Bitcoin Gold Hard Fork is being implemented with the purpose of decentralizing Bitcoin even more than it already is. It will make mining with your home computer possible again, as the developers believe that mining Bitcoins has become a very corporate and centralized activity. The goal, according to the dev team, is to “Give Bitcoin back to the people.” While the technical aspects of the Hard Fork are important, they are outside of the scope of this article. This guide will focus on what you can do to prepare yourself for the Hard Fork and ensure you keep, and possibly even profit from your Bitcoin balances. Visit Bitcoin Gold’s Website for more detailed information.
A New Coin Absolutely Free
When the Bitcoin Gold Hard Fork occurs in a couple of days, everyone who has a Bitcoin balance will receive the exact same amount of Bitcoin Gold. This happened the same when Bitcoin Cash was created on August 1st of this year. The only thing to worry about is if you will have the ability to access it immediately. This depends on where you store your Bitcoin, or what type of wallet you use.
Get Your Bitcoin Out of Your Exchange Wallet
Many people who had their Bitcoin balances stored with online exchanges or trading platforms were unable to access the Bitcoin cash that was rightfully theirs because some of the Bitcoin exchanges decided not to support the new cryptocurrency Others had to wait days or even weeks before the balances were accessible. It took Poloniex 2 weeks to make the Bitcoin cash available to its customers. Coinbase has still not made those balances available and wont until after the first of next year.
For anyone who has wallets with an exchange where this has happened, you don’t need to be reminded how much money you lost. On August 2nd, when Bitcoin cash was available to trade, it opened with a price of $756.93. Two weeks later, when Poloniex made it available and started a market for it, it was worth $327.39. While it did peak at an all-time high of $1091.97 a few days later, today it is worth only $339.27. Users of Coinbase, who still have almost 3 months left before they can access their Bitcoin cash can most likely expect prices to be approximately half of what they are now, if the trend continues.
Where to Store Your Bitcoin
So, when the Bitcoin Gold Hard Fork occurs in 4 short days, where will you keep your Bitcoins? Getting a paper wallet is your best option obviously, but not always feasible. A good rule of thumb is this: If you have access to your private keys, then you have full control over your wallet. There are many options to choose from. When trying to decide on a wallet, simply find out who has the private keys. Make sure you have them and no one else and then you can ensure that when Bitcoin Gold is created, you will get your balance, and it will be available to you as soon as the network is up and running to support it.
Bitcoin Gold: Bringing Mining Back to The Little People
Bitcoin Gold is the creation of lead developer, Jack Liao. Liao doesn’t like the fact that the Bitcoin mining industry is run by 3 companies, essentially. Bitmain, Bitfury and Canaan are the companies that manufacture and sell ASIC mining rigs. ASIC, or Application Specific Integrated Circuits, are different from normal processors that you find in your home desktop or laptop computers. They are designed to perform the specific function of solving SHA256 Algorithms, the hash function used by Bitcoin. Due to the efficiency of these mining rigs, it is now impossible for people to mine Bitcoin using their home computers. This was never the intention of Satoshi Nakamoto when he created Bitcoin. Bitcoin was supposed to allow for everyone in the world to have control, hence the term “Decentralized”. With the ASIC mining rigs being so expensive ($3,200 on average), it is well out of the range most people on the planet can afford to purchase.
Sorry ASICs, You Cannot Mine Here
Bitcoin Gold will not use the SHA256 hashing function for confirming transactions and releasing new coins. Instead, Liao and his team are implementing Equihash, a proof-of-work hashing function that is very memory dependent. SHA256 is a fairly simple hashing function that does not need a lot of memory (RAM), where Equihash is very complex and depends on RAM to get the job done. This will effectively make it impossible to mine using an ASIC and allow anyone with a computer, or even mobile phone to mine coins. The Equihash hashing function is already proven, as it is the hashing function used by Zcash.
The Unfair ASIC Advantage Comes to an End
To paint the picture for you, using the SHA256 hashing function (Bitcoin), a home computer can hash at a rate of approximately 10,000,000 hashes per second (10 MH/s), where an ASIC can hash at a rate of up to 10,000,000,000,000 Hashes per second (TH/s). 10 million for a home computer and 10 Quadrillion for an ASIC. That means that an ASIC is a Million times more efficient than a home computer. Hence, it is impossible to mine Bitcoin from a regular processor. With Equihash, an ASIC is still more efficient, but only by 100 times. However, the Hashrate that an ASIC can get with Equihash is only 3000 MH/s, or 3 GH/s. This makes it very inefficient to use an ASIC to mine. While ASICS lose the maximum amount of hashing power, Home computers gain. A typical computer processor will be able to handle up to 30 MH/s.
Bitcoin Gold Will Not be Available Immediately to Anyone
While the Hard Fork is taking place on October 25th, Bitcoin Gold will not be available until a week or so later. The development team is creating the Blockchain, which will remain without any blocks until the release of the Bitcoin Gold coin in early November. However, you only get Bitcoin Gold to match your Bitcoin balance at the amount of Bitcoin you have in your wallet when the Hard Fork occurs. Do not think that if you deposit Bitcoins before the coin is released, but after the Hard Fork that you are entitled to any Bitcoin Gold. It is only possible because it is basically making a clone of the Bitcoin network. That means that everything will be exactly the same between the two blockchains up until the point of the split. This includes balances, coin totals, transactions, etc.… make sure you have your balances in order prior to October 25th to take advantage of Bitcoin Gold for free.
Bitcoin Gold Value is Anybody’s Guess
No one knows for sure how much Bitcoin Gold will be worth upon its release. When looking for the answers to that question, you will find everything from 0.00000001 BTC to .75 BTC as a response. That is only taking samplings from trusted Bitcoin financial gurus. While the majority seem to think it will not be worth as much as Bitcoin Cash was when it launched, it does appear that it will be worth more than the US Dollar and worth the hassle of implementing new tools and such to be able to access and spend it. Again, so it appears. Only time and the markets will be able to answer the question of value.
What to Expect with The Bitcoin Gold Hard Fork
On October 25th, you can expect that all Bitcoin trading on exchanges will come to a halt. That goes the same for withdrawals, deposits, spending, etc.… Bitcoin will essentially come to a standstill. If you control your own funds, it is recommended that you do not send or receive any Bitcoin during the Bitcoin Gold Hard Fork implementation. You want to be sure that there are no technical difficulties, errors are other unforeseen issues that could result in your Bitcoins being lost in transit.
You can also expect the price of Bitcoin to rise and fall like a rollercoaster ride for the next 4 days until the Hard Fork occurs. This is happening because some people are not taking any chances and liquidating their Bitcoin into other currencies, while others are trying to take advantage and stock up on Bitcoin in their wallets. Bitcoin has hit the $6,000 mark at the time of this writing and has fallen as low as $5632 within the time it took to get this far. So, it may be a bumpy ride, but if you just ride it out, everything will be just fine when the dust settles on October 26th.
Once the Dust Settles
Once the Bitcoin Gold Hard Fork is complete, you should check the forums, here at Coinstaker and other news sites to find out what the status of the network is. You should also, if you have not done so already, find out how to ensure you have the proper tools in place to deal with the Bitcoin Gold coin once it is released a week later. Do not make any Bitcoin transactions until you know for sure that everything is up and running smoothly again. This is the only way to ensure that you will not lose your Bitcoin in some sort of mishap.
When the Bitcoin Gold Hard Fork Is All Over
As soon as the dust settles and the Bitcoin Gold Hard Fork is behind us, you will have to give it a day or two for the price of Bitcoin to stabilize a bit. Of course, the price of Bitcoin has never been what anyone would call stable, but at least to get it back to the expected levels of instability that we are all used to. You also must begin preparing for one more planned Hard Fork coming in December. The Segwit2 Hard Fork is right on the tail end of the Bitcoin Gold Hard Fork, so do not relax just yet. Check back here at CoinStaker for news on the Segwit2 Hard Fork in the coming weeks.
Visit Bitcoin Gold’s Website for more detailed information.
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