Bitcoin Gold (BTG) was introduced in 2017 as a result of a hard fork that took place on the Bitcoin blockchain. The cryptocurrency was created to decentralize the Bitcoin network by using an alternative mining algorithm known as Equihash.
BTG operates as an open-source cryptocurrency with a proof-of-work (PoW) consensus mechanism and can be used in transactions without the need for intermediaries such as financial institutions.
What are the main differences between Bitcoin and BTG?
BTG and Bitcoin have some differences in mining algorithms, levels of decentralization, market position, and ASIC resistance.
Mining Algorithm
Bitcoin uses the SHA-256 algorithm, which favors specialized hardware (ASICs) for mining. Bitcoin Gold utilizes the Equihash algorithm, designed to be GPU-friendly. This promotes broader participation in mining and prevents ASIC dominance.
Decentralization
Bitcoin Gold aims to re-decentralize mining by allowing more people to participate, reducing the influence of a few powerful miners. Inside the Bitcoin ecosystem, large mining pools dominate Bitcoin mining, raising concerns about centralization.
ASIC Resistance
Bitcoin Gold was specifically designed to resist ASICs. Equihash ensures a fairer distribution of mining rewards. Bitcoin is vulnerable to ASIC dominance due to its SHA-256 algorithm.
Market Position
Bitcoin is considered one of the most dominant cryptocurrencies, being widely accepted and recognized. Bitcoin Gold is considered to be a smaller player with a focus on decentralization and inclusivity.
Use Cases
The main goal of the cryptocurrency is to democratize the mining process by introducing a new proof-of-work algorithm.
The new algorithm used by the cryptocurrency was created to combat the scalability issues that Bitcoin struggles with.
Bitcoin Gold has also implemented Bitcoin features like SegWit, which allows for advanced scaling technologies like the Lightning Network.
Bitcoin Gold price evolution
Currently, the price of Bitcoin Gold is $23.65 per BTG. The cryptocurrency has a circulating supply of 17,513,923.589 BTG and a market cap of $413,808,204.54.
The price of the cryptocurrency is mainly defined by market supply and demand. In recent months, the cryptocurrency has shown a decrease in its price. BTG is listed and tradable in top tier exchanges such as Upbit, Bithumb, Gate.io and Bybit, among others.
On-Chain Media articles are for educational purposes only. We strive to provide accurate and timely information. This information should not be construed as financial advice or an endorsement of any particular cryptocurrency, project, or service. The cryptocurrency market is highly volatile and unpredictable.Before making any investment decisions, you are strongly encouraged to conduct your own independent research and due diligence
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