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What is BitcoinGold (BTG)? Extremely Easy Explanation *2024

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This potentially makes Bitcoin owners vulnerable to the 51% attack if one of these companies were ever to own over 51% percent of the mining power.

 BitcoinGold Explained

According to the BitcoinGold Whitepaper, BTG is an experiment” designed to provide a more decentralized approach to mining by providing an ASIC-resistant cryptocurrency.

BTG can be mined on a GPU or any modern computer with 2GB of RAM.

The BitcoinGold team, thought that this would solve the potential risk of a network of computers taking over the Bitcoin network.

 

 

What is BitcoinGold?

In very simple terms, BitcoinGold or BTG is a variant of Bitcoin, also known as a fork. This means BitcoinGold has similar properties as Bitcoin except it has a few tweaks designed to make it more decentralized than Bitcoin.

The Bitcoin Gold team wanted to solve the current Bitcoin mining problem of 2017, which is that most ASIC mining farms are controlled by a few large companies.

This potentially makes Bitcoin owners vulnerable to the 51% attack if one of these companies were ever to own over 51% percent of the mining power.

 

Bitcoin Mining Problems

  • Bitcoin mining is extremely energy-demanding with its current algorithm; The more people join, the greater the mining difficulty.
  • New miners have to invest heavily in mining equipment if they want to compete against large Bitcoin mining farms based in countries like China with cheap electricity.
  • Bitmain, one of the largest ASIC manufacturing companies also owns most of the Bitcoin mining facilities, this means that Bitcoin is not decentralized but transactions are decided by a couple of large networks.
  • Bitcoin is no longer “one computer one vote” but has become: “one network one vote”.

 

Bitcoin Gold vs Bitcoin

 

btc vs btg - what is the difference between bitcoingold and bitoin
BTC vs BTG

 

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Controversies

51% Attack

BitcoinGold Blockchain was hit by two 51% attacks resulting in $70K double spend.

A 51% attack is when a person or group controls the majority of the network.

 

Ironically, this was the exact problem that the BitcoinGold team was attempting to solve believing that it could potentially happen to Bitcoin.

 

A Whale Owns Over Half the BTG Supply

Bitcoin.com then reported that a whale owned over 51% of the BitcoinGold supply has been manipulating the BitcoinGold market prices.

The team implemented updates in an attempt to solve this problem.

 

Bottom Line

But what happened to BitcoinGold just shows how individuals will shamelessly exploit any weakness in a technology.

However, investing in a new cryptocurrency is similar to Angel investing, everyone wants to find the next Amazon or in this case, the next Bitcoin.

Just remember that buying brand new currency is extremely high-risk and the odds of failure are greater than established cryptocurrencies.

 

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