HOW TO INVEST IN BITCOIN GOLD
An Investment in Bitcoin Gold
The Bitcoin universe is suffering from a major pain point: big mining industries have taken over the “decentralized” currency. Bitcoin Gold (BTG) is the solution.
Jack Liao answered by creating a hard fork of the Bitcoin and thus Bitcoin Gold was born. Liao and his team of six created the fork on October 24, 2017 by splitting Bitcoin’s open source blockchain into two incompatible chains. For all you blockchain geeks out there, it specifically occurred at block height491407
iao’s team then postmined 100,000 coins after the fork by rapidly mining approximately 8,000 blocks at 12.5 BTG per block. Most of the coins were placed in an endowment. However, about 5% of the 100K coins were gifted to Liao and his team as a bonus.
Though the split occurred in October, the mining software wasn’t publicly accessible until November.
Bitcoin Gold Vs. Bitcoin
Total Amount of Coins:
Each cryptocurrency has a set amount of tokens it can create. Bitcoin has a total supply of 21 million coins. Since Bitcoin Gold is a spin off of Bitcoin, it offers less tokens: a little shy of 17 million. However, because of its ASICs resistance, it’s vastly more affordable than Bitcoin (currently $115.68 USD/BTG versus Bitcoin’s $10,055/BTC).
Note: Bitcoin Gold retained Bitcoin’s transaction history. This means that anyone who held Bitcoins immediately before the hard fork automatically obtained an equal amount of Bitcoin Gold after immediately the fork.
Transaction Processing Speed:
Bitcoin Gold can process about 7 transactions per second as compared to Bitcoin’s 3 – 4 transactions per second.
Bitcoin has its own algorithm: SHA-256. Liao created the hard fork in hopes of creating a better virtual currency than Bitcoin. He used Equihash’s SHA-256 proof-of-work algorithm to restore CPU and GPU mining functionality. This algorithm is shared by another cryptocurrency called Zcash.
Big picture, this algorithm is Application-specific integrated circuit (ASICs) resistant. ASICs can be frustrating to smaller investors because it offers entry prices in the thousands of dollars. So by moving away from the ultra specialized set of processes, Liao was able to combat centralization of mining. Or in other words, he gave the power back to the little guy (or anyone with a personal computer, really).
Because of this different mining structure, it’s important to note that Bitcoin and Bitcoin Gold are not competitors.
INVEST IN BITCOIN GOLD
Learn about the Benefits of bitcoin gold in your IRA
HOW TO INVEST IN BITCOIN GOLD
If you’re wondering ‘Where Can I Buy Bitcoin Gold?’, or ‘How Can I Invest in BTG?’ – You couldn’t have come to a better place. We offer cryptocurrency IRA accounts and most would consider Poken as our specialty. We have experts on staff to help you understand Populous, walk you through the BTG buying process, and even allows you to fund your Poken IRA account with an existing fund such as your IRA or 401k.
Reach out to us today and learn more about investing in Bitcoin Gold, the long-term value in BTG, and most importantly, open your Bitcoin Gold account with CryptoWallet IRA!