The Bitcoin Gold and bitcoin cash are similar to the bitcoin, but with the small changes due to the limitation of bitcoin, they are named differently. Many people think that bitcoin gold is the second name of the bitcoin and bitcoin cash is the physical form of the bitcoin. These names are separate and have different features, and you cannot say the same thing. Except for crypto traders with no proper awareness, the people get into the misconception or wrong perceptions about the bitcoin, bitcoin gold, and bitcoin cash; we will try to understand in-depth in this five-minute reading that, what is the best crypto trading bot?
Bitcoin in brief
Before going into the depth of these terms, first, you have the basic information of the bitcoin technology to understand the whole concept of bitcoin cash and bitcoin gold. This digital gold came in two thousand eight (2008) to solve the various issues regarding fiat payments. People get frustrated with the formalities and pay high fees or charges to these financial institutions. Hence, bitcoin was the beginning of the cryptocurrency that also gave birth to new crypto coins in the digital age. There are over thousands of other crypto coins available on the network. Bitcoin is the unique currency over all the currencies available because of its limited supply of up to twenty million and an average of ten minutes of transaction validation.
What is a hard fork in cryptocurrencies?
The hard fork is a very confusing word for many people who analyze or understand bitcoin technology in the beginning. A hard fork means changes or creating new rules to make the system efficient and straightforward without changing the basic rules of the original one. So in simple terms, making the complex system straightforward by modifying and creating a second layer to the same platform.
Why do these new currencies come into existence?
As we read above, what is a hard fork in cryptocurrencies, bitcoin cash, and bitcoin gold, is a hard fork of the original crypto coin is, bitcoin. There are many reasons for bringing these cryptocurrencies (bitcoin cash and bitcoin gold) into existence because there are many limitations in the original bitcoin crypto coin. The transaction speed of this coin will take, on average, ten minutes, and it takes hours and days to validate in some cases. It is the most significant limitation because the block storage space for the bitcoin transactions is one megabyte. Some bitcoin developers want to make it more efficient, fast, user-friendly, and miner friendly, but some bitcoin programmers do not want to break the basic rules that the founder set initially. So these new currencies, i.e., bitcoin cash and bitcoin gold, came into existence without amending the default rules of bitcoin, and all the developers agreed to this innovation.
Explain Bitcoin Cash
Bitcoin cash came into existence by the contribution of bitcoin programmers to make it a fast, secure, and low fees crypto coin. Bitcoin cash is similar to its original version (bitcoin), but many BTH coins can be validated simultaneously compared to bitcoin at significantly less or nominal cost. The BTC (bitcoin cash crypto coin) supply is also twenty-one million, and there are nineteen million (19,000,000 BTC) in circulation, which also makes it scarce. The current cost of this BTH is three twenty-five ($325). The most significant things that make it unique from bitcoin are its rapid transactions, nominal fees per transaction, privacy and security, and accessibility on all exchanges or platforms.
What is bitcoin gold?
Bitcoin gold has all the features of the original bitcoin, such as a decentralized process system, security, safety, privacy, accessibility, low transactional fees, open-source, etc. but the only difference between the mining. The BTG is also limited to 21,000,000 and 17,000,000 in circulation, making it unique and scary over the other thousand cryptocurrencies available on the network.
The bitcoin takes more than ten minutes for the smaller transactions because miners do not mine for low fees, and that is why it takes hours or days to validate. Moreover, bitcoin mining requires massive hash power to validate a single block that requires specific machines and other resources. Therefore, everyone cannot mine bitcoin because of the high hash contribution. But in bitcoin gold mining, everyone with a standard desktop or laptop can mine BTG (bitcoin gold) crypto coins by installing a GPU (Graphics processing unit) or video cards.