What are BCH (Bitcoin Cash) and BTG (Bitcoin Gold)? Table of Contents
BCH (Bitcoin Cash) and BTG (Bitcoin Gold)
In 2017, the “old man” Bitcoin survived two forks at once and gave the world two new crypto coins – Bitcoin Cash (BCH) and Bitcoin Gold (BTG). What is their difference from BTC, is it worth investing in them, or is it more reliable to just buy the bitcoin cryptocurrency.
The term “fork” (from English slang – “fork”) means software correction of a certain network, when applied to a blockchain, this leads to the appearance of two (or more) separate branches. The original chain either moves parallel to the new branch, which begins to live its own life, or ceases to exist. In any case, the program code of the primary branch does not change anymore. It was the attempts to improve the BTC structure and enable each participant to buy the bitcoin cryptocurrency that brought two new tokens to the market.
What is Bitcoin Cash?
Within the framework of the Bitcoin Cash protocol, it almost completely repeats the “parent”: PoW with the SHA-256 hashing algorithm; same block time and reward system. The BCH block size is 8MB, the difficulty changes every 6 blocks. By changing the block size, mining this currency has become really easier and faster. The size of the issue is 21,000,000 coins. Primary Bitcoin Cash was received by the owners of BTC, who at the time of the fork had private keys to their wallets, as well as exchange participants who provided new tokens to their clients.
In general, the task of the fork has been achieved – some users, especially small ones, instead of buying the bitcoin cryptocurrency, switched to Bitcoin Cash, the intra-network transaction fee and processing speed have significantly decreased.
Today BCH is ranked 4th in terms of market capitalization (after BTC, Ethereum and XRP) – $ 5,087,798,214 USD. The price peaked on 12/20/17 – about $ 5000. As of 05/10/19, the average market bitcoin cash rate is $ 286.30 USD.
Where to buy Bitcoin Cash?
Already in September 2017, Bitcoin Cash was supported by Kraken, Bitfinex, Bitstamp, ViaBTC, Korbit, BTCBOX, BTCPOP, CoinFloor, HitBTC. Today BCH is included in the standard package of cryptoassets of most brokers. Consistently high volume of trading in assets with BCH is shown by OKEx; HitBTC; EXX; Huobi; RightBTC – this is where you need to look for the optimal rate. Exchange / purchase / sale is freely available on all major crypto exchanges, BCH is accepted as a full-fledged currency of payment for goods and services.
How to trade assets with Bitcoin Cash?
Fundamental analysis of assets involving BCH is quite complex. Bitcoin Cash is a clone of ordinary bitcoin, so standard technical analysis is unstable, all trading situations should be considered only on TFs not lower than H1, only reversal signals show a high probability of working out. But psychological “round” levels, multiples of $ 50-100, and the main Fib levels work well, as well as in conditions of increased demand for BCH, it makes sense to trade a breakout. Now the positive correlation of BCH with BTC is situational, so this asset is not suitable for statistical arbitrage.
What is Bitcoin Gold?
The main goal of BTG creation is to completely replace Bitcoin, first of all, as a means of accumulation, that is, to become the first “digital gold”, and the developers planned to achieve this exclusively by decentralizing mining. In the new system, everyone who does not want to participate in mining can independently determine the size of the coin block, but by default it is 1MB. As of 05/10/19, the weighted average market bitcoin gold rate is $ 19.396; market capitalization $ 334,011,351. The size of the issue is 21,000,000 coins, now about 17.5 million in circulation. The maximum price of BTG was also recorded on December 20, 2017 ($ 474).
Bitcoin Gold is the only bitcoin fork that can only be mined on a GPU due to its less demanding Equihash algorithm than SHA-256. That is why BTG is still mining quite actively today. Judging by the fact that at the end of May 2018, as a result of the attack on the Bitcoin Gold network, tokens worth $ 18 million were stolen, in fact, there are no special fundamental differences in the block structure and protection of BTG.
Where to buy Bitcoin Gold cryptocurrency?
Today BTG is available on more than 40 trading platforms, the largest ones being P2PB2B, Bithumb, HitBTC, Upbit, Sistemcoin, QuadrigaCX, Altcoin Trader. BTG pairs are traded not only with major currencies, but also, for example, with Turkish lira and with KRW, as well as assets with BTC, Ethereum, TRON, EOS, LTC, Ripple. BTG is not offered for fiat, but exchange/sale / purchase is available on most crypto exchanges. Bitcoin Gold is not used as a means of payment in the ordinary economy.
How to trade assets with Bitcoin Gold?
Bitcoin Gold was unable to replicate the success of Bitcoin Cash and prove its technical superiority over those who prefer to buy bitcoin cryptocurrency. Assets with BTG are less volatile than BTC itself, and the correlation with the parent is rather weak. Exotic pairs with BTG are traded with very low volumes and high commissions, that is, only BTG / USD or BTG / BTC can be recommended for stable trading. With reasonable money management, we recommend trend strategies based on indicators with a mechanism for calculating the average, for example, dynamic channels or moving averages.
The BCH and BTG cryptocurrencies are the most interesting for their technical implementation and application possibilities in the real economy, and the speculative stock of these tokens is still quite low. Fundamental information will have to be collected drop by drop, it is difficult to analyze the dynamics, trading conditions for them are usually unfavorable, and the risk is high. Anyone who can afford to buy Bitcoin cryptocurrency simply does not make sense to experiment with its own forks. Bitcoin still holds the bulk of the crypto market, and the prospects for legal recognition of BTC as a legal currency are most realistic.
IronFX
Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!