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Bitcoin Gold: A review
Editorial Team

On October 25, a scheduled bitcoin blockchain hard fork will occur. A new cryptocurrency named Bitcoin Gold (BTG/Bgold) will be issued.

This token has nothing to do with gold – the yellow metal. Also, BTG is not related to both previous hard fork, Bitcoin Cash (BCH/Bcash), which took place on August 1, and the forthcoming SegWit2x (S2X/Bizcoin) hard fork, which is scheduled for mid-November,

Bitcoin Gold is going to change the current Bitcoin’s proof-of-work algorithm from SHA-256 to the Equihash algorithm.

The latter is mined by graphics cards (GPUs) and is employed by the Ethereum, zCash, Zencash, and Hush cryptocurrencies. The return of mining process to home users through this algorithm will provide more extensive decentralization.

The man behind BTG, Jack Liao, is also the CEO of LightningASIC, a Hong Kong-based company that mines mostly Litecoin and produces cryptocurrency hardware.

It is not a coincidence that the firm produces ac multi-GPU mining unit. It currently has a stock of 913 units. Should BTG succeed in taking market share away from Bitcoin, the company would benefit from both mining the new cryptocurrency and the selling of the units.

The parity between BTC / BTG at the time the fork occurs will be 1:1, only if you have access to the private keys of your wallet, so no exchange wallets apply.

Exchanges on BTG are planned to be open on November 1 and not October 25. This gap allows time for technical issues to be resolved by all participants.

The technical differences among Bitcoin and the various pretenders are shown below:


Reasons for Optimism in comparison with Bcash

  • The BTG team appears to be more technically competent than Bcash’s team. BTG GitHub repository seems more active than Bcash’s.
  • Whereas Bcash has deliberately rejected Bitcoin’s SegWit upgrade, BTG has embraced it. Thus, BTG may copy future Bitcoin improvements.
  • It appears BTG has plans to change address formatting too- a welcome change to prevent the accidental sending of BTC to fork-coin addresses.
  • Bcash’s Emergent Difficulty Algorithm (EDA) has produced erratic block times that are either too slow or too fast. BTG’s per-block difficulty adjustment will likely encounter of its own.

Reasons for Pessimism

  • BTG was initially announced as an ICO, although these early announcements have since been unsuccessfully scrubbed from the internet.
  • Serious questions remain as to whether LightningASIC and its partners will be mining BPTG between the fork and exchanges listing dates.
  • BTG has not yet implemented replay protection. If this situation remains, in sending BTG, a user might inadvertently send BTC also, which could be a costly mistake.