Like other online platforms, the bitcoin network is also not perfect. It has technical glitches, too. This is the reason why innovations are introduced to the system from time to time. One of the notable developments in recent years took place in 2017 when bitcoin gold was made part of the network.
What prompted this initiative is the prevalence of major issues, especially relative to the mining process. Developers believed that by adopting a new algorithm, the playing field would guarantee fairness among all participants, not just large mining operations.
But has bitcoin gold really improved the crypto network? Almost four years have passed since it entered the market, but many users seem to ignore how it changed the system, either for the better or worse. The main purpose of this hard fork was to make bitcoin decentralised again, and as well as improving the distribution, protection, and transparency of all transactions. By far, bitcoin gold is one of the largest and most discussed crypto forks.
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Impact of Bitcoin Gold on Mining
Bitcoin mining offers incentives among the participants. There are those who do this process on their own, while others join the crypto mining pools. Their main job is to verify transactions by solving mathematical algorithms to get the block rewards. But the earnings are reduced gradually as the number of bitcoins in circulation declines over time and is close to reaching its 21-million limit.
Despite the reduction in potential profits, many miners still continue the venture, and the stability and continuity of the bitcoin network are partly reliant on their role. However, as with other business transactions, it also requires resources because the competition is tight among individual and group miners. Usually, those miners coming together in one pool need special equipment in order to gain an advantage. Individual miners may also have to invest time and money to create their own rigs for faster and successful validation of transactions.
With the introduction of bitcoin gold into the system, the game has changed. The main purpose of this hard fork is to improve the algorithm by which the cryptocurrency is mined, which means that the mining process cannot be carried out faster on specialised tools than it can on other computer systems. Small miners are particularly benefited by this protocol given the fair distribution of digital assets across all networks. Bitcoin gold is also now used for certain applications such as open-source bridges for computing technology, payments, and smart contracts. As of June 2021, it had a price of $58.98 with an around-the-clock trading volume of around $38 million.
Bitcoin Gold Enhances the Crypto System
Besides fair distribution of coins among miners, bitcoin gold also enhances the protection and transparency features of the cryptocurrency system. This is attained by increasing the anonymity of users – that is, not publishing transaction details and wallet addresses. However, security threats are still present, acknowledging the fact that hackers and malicious individuals continue doing illegal activities.
Still, bitcoin gold offers promising improvements on this aspect as it has endured potential security attacks in the past, especially cases of theft. These instances are not uncommon for virtual currencies. Many attacks are intended to gain control of 51% or more of the blockchain’s computing power to manipulate the system.
Analysing Probabilities for Bitcoin Gold
Experts have forecasted bitcoin gold to venture into research on smart contracts and blockchain democracy, and also having a decentralised fiat-crypto brokerage network. This future plan will focus on applications, interoperability, lightning network, and infrastructure. Developers intend to operate bi-directionally with other blockchains and ecosystems that would further develop the system and result in massive progress.
One major factor for the short-term and long-term success of bitcoin gold is its availability on crypto exchanges. This would enable users to access the coin on this platform to make transactions. At present, bitcoin gold is trading with other cryptos and is available through more than 20 wallet services.
Bitcoin gold has significantly changed the mining process as it tries to create fair opportunities for regular miners. They are given an equal playing field for mining bitcoin gold without the need for any specialised equipment. Meaning to say, you can earn tokens just by using a regular computer; hence, setting back the rule to the very beginning of bitcoin transactions.
The crypto network is highly speculative and unpredictable. Before making any investment, you have to analyse whether the risks are manageable. Uncertainty is inherent in the system, and this could largely factor in when making decisions. Always make sure that you’re safeguarding your interests while doing transactions with other users. It pays to be smart.