Bitcoin Gold for beginners: A step-by-step guide to BTG | finder.com

A guide to Bitcoin Gold (BTG)

What is Bitcoin Gold?

And why should you care?

Bitcoin Gold is a fork of the original bitcoin cryptocurrency, aimed at breaking down the bitcoin mining monopoly.

Mining has been a key feature of bitcoin and cryptocurrencies since the very beginning of bitcoin (BTC). The technology used for mining coins has been charging ahead in leaps and bounds but the hardware has become expensive and prohibitive for most hobbyists.

Bitcoin Gold (BTG) aims to fix this monopolization of mining by professional businesses by changing the algorithm used to solve blocks.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

What is Bitcoin Gold?

Bitcoin Gold is a free, open source cryptocurrency project developed by volunteer bitcoin enthusiasts. It was first announced on 23 October 2017 and launched on 12 November 2017.

Bitcoin Gold is what’s known as a hard fork of the bitcoin blockchain. A hard fork creates a new branch of the bitcoin blockchain that contains the same transaction history as bitcoin up until the fork, but exists in parallel with the bitcoin blockchain after the fork. This creates a new cryptocurrency.

IconSymbolInitial release dateAlgorithm typeMax. supply
BTG12 November 2017Equihash21 million BTG

How is Bitcoin Gold different from bitcoin?

In essence, Bitcoin Gold is very similar to bitcoin. They both have the same transaction processing time of 10 minutes (i.e. it takes approximately 10 minutes to confirm a transaction after cryptocoins have been transferred) and they both have 21 million coins maximum supply (i.e. there will never be more than 21 million BTG in circulation).

Yet, there are some very important differences that we’ll review now.

A new mining algorithm

Where bitcoin uses the SHA-256 algorithm to mine new blocks and transactions, Bitcoin Gold uses Equihash. Both are proof-of-work algorithms, meaning they require the miner to solve a hard cryptographic puzzle in order to mine a block. However, while bitcoin miners gain a distinct advantage when using expensive, mining-specific equipment called ASIC, there is no such advantage with Bitcoin Gold.

With Bitcoin Gold, anyone using commonly manufactured equipment can mine, providing an equal opportunity environment more in line with bitcoin inventor Satoshi Nakamoto’s vision of “one CPU one vote”.

For more information on bitcoin mining, check out our in-depth mining guide.

Replay protection

One of the very first updates made to the Bitcoin Gold ecosystem was replay protection because a common problem with bitcoin forks is transaction replay. A replay is possible because both the original blockchain and the new branched blockchain contain the same transaction history.

As a result, malicious users could replicate a transaction from one blockchain to the other, effectively receiving twice the cryptocurrency. Bitcoin Gold implements replay protection that makes one blockchain’s transactions invalid on the other.

Where can I use BTG?

At the time of writing (November 2017), Bitcoin Gold is only a month old and as such is not as widely used by merchants as bitcoin is.

Nevertheless, if Bitcoin Gold gains momentum, it could find itself being used alongside bitcoin and other mainstream cryptocurrencies such as Litecoin and Ethereum.

How can I get Bitcoin Gold?

  • From the hard fork

If, at the time of the fork, you had bitcoin in your wallet (not in an exchange) then you’re in luck because the Bitcoin Gold hard fork awarded you BTG at a rate of 1 BTC = 1 BTG.

So, for example, if you had 0.5 BTC at the time of the hard fork, you are automatically awarded 0.5 BTG after the fork (while keeping the original 0.5 BTC in your wallet) once you open a BTG wallet.

  • From an exchange

Buying Bitcoin Gold from a cryptocurrency exchange works just like buying any other cryptocurrency. At the time of writing (November, 2017) you can buy BTG from any of the following exchanges:

  • Binance
  • Coinnest
  • YoBit
  • Bleutrade
  • BitStar
  • OKEx
Name Product Payment Methods Available Fiat Currencies Available Cryptocurrencies
Cryptocurrency
BTC, XRP, USDT, ETH, NEB, XVG, TRX, NEBL, ETH, NEO, FUN, ETC, BCC, POE, DASH, ELF, ICX, BNB, ZRX, APPC & 80+ more
Trade 60+ cryptocurrency pairs on this up-and-coming exchange based in China. Multi-language support.
Cash, BPAY, POLi, Cryptocurrency
AUD
BTC, BCH, ETH, XRP, ADA, XEM, LTC, XLM, MIOTA, TRX, DASH, NEO, XMR, EOS, QTUM, BTG, LSK, ETC, XVG & over 45+ more
CoinSpot is an Australian marketplace that allows you to easily buy, sell or exchange multiple cryptocurrencies using AUD.
Credit card, Debit card, SWIFT, SEPA, Cryptocurrency
USD, EUR, RUB, GBP
BTC, DASH, ETH, XRP, ZEC
Use your USD, EUR or RUB to buy and sell cryptocurrency at competitive exchange rates and with high maximums for verified accounts.
Cryptocurrency
-
BTC, BTG, DASH, ZET, XVP, XPM, WDC, VTC, VRC, UNO, TROLL, START, SLR, SLG, RDD, QTUM, PPC, POT, OK, NVC, NMC, NLG, NEOS & 25+ more
Trade cryptocurrency to cryptocurrency through this globally accessible exchange based in Brazil.
BitBay Cryptocurrency Exchange
BitBay Cryptocurrency Exchange
Wire Transfer, Cryptocurrency, Express Polish Post Office 24/7, Express Żabka Market, Express DotPay
USD, EUR, PLN
BTC. BCC, BTG, LTC, ETH, LSK, GAME, DASH
BitBay is a Polish-based exchange that offers a variety of accessible payment methods, including Express Polish Post Office 24/7 service and Express DotPay.
Credit card, Debit card
USD, EUR
BTC, BCH, BTG, ETH, ETC, DASH, DOGE, NEO, OMG, PIVX, SALT, STEEM, USDT, XLM & 50+ more
Access competitive crypto-to-crypto exchange rates for more than 35 cryptocurrencies on this global exchange.
Cryptocurrency
-
BTC, BCH, ETH, LTC, DOGE, NEO, XMR, POWR, DASH, PIVX, XEM, OMG, GNT & 500+ more
Buy and sell hundreds of cryptocurrencies with minimal verification on this all-in-one, New Zealand-based exchange.
Cryptocurrency
-
BTC, ETH, XVG, SC, XRP, DOGE, STRAT, XMR, ADA, OMG, ETC, BCC, XLM, DGB, UKG, QTUM, ZCL, RDD, LTC, NEO & 120+ more
New account registration is currently halted on Bittrex due to a surge in demand.
Cryptocurrency
-
BTC, BCH, BTG, ETH, ETC, FUN, 1ST, ANT, BAT, BNT, BLK, CVC, CLAM, DASH, DCR, DGB, DNT, DOGE, EDG, EOS, FCT, GAME & 25+ more
Cryptocurrency
-
BTC, BCH, KCS, DRGN, DBC, XRB, ETH, PRL, LTC, SNOV, DENT, RPX, QLC, NEO, UTK, BNTY, ACT, POE, UKG, LA, LEND, VEN & 50+ more
Browse a variety of coin offerings in one of the largest multi-cryptocurrency exchanges and pay in cryptocurrency.

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Invest in Bitcoin Gold

If Bitcoin Gold gains momentum, then its price could rise. This is not a sure thing, of course, and past performance is not indicative of future performance. But if more people join the Bitcoin Gold network its value might increase and if you were holding BTG in your wallet, then the value of your wallet would increase as well.

Cryptocurrency prices are extremely volatile and risky. Between 8 November 2017 and 12 November 2017, a sudden spike in interest in Bitcoin Gold shot the value of 1 BTG from $154.52 to $452.73. So anyone who bought BTG before the spike and sold it on 12 November 2017 made a hefty profit. However, the price quickly tumbled back down to approximately $125.00 (11 November 2017).

Get paid in BTG

If you provide a service or product online you can ask to get paid in BTG. Because the currency is still in its infancy as of November 2017, you might want to offer customers the option to pay with BTC or other altcoins alongside Bitcoin Gold, However, if the cryptocurrency does gain more acceptance you might see more people willing to pay you for services and products using BTG.

Making payments with Bitcoin Gold

Transferring money with Bitcoin Gold requires a BTG wallet, some BTG on your account, and a destination address. The steps to follow are:

        1. Install a Bitcoin Gold wallet. First you need to install a wallet that is compatible with Bitcoin Gold. This will let you access your BTG.
        2. Get the recipient’s wallet address. The recipient of your BTG should be able to provide you with a destination address made of letters and numbers. Make sure you don’t mistype this address!
        3. Enter the amount of BTG to send. Enter into your wallet the value in BTG that you want to send the recipient, making sure you have enough funds.
        4. Send the crypto coins. Press the “Send” button on your wallet application to send the BTG to the recipient. Funds are transferred nearly instantly, but may take up to 10 minutes to be entirely confirmed.

What’s next for Bitcoin Gold?

Bitcoin Gold is barely a month old at the time of writing (November 2017). The official roadmap indicates that the developers aim to continue pushing towards making Bitcoin Gold a standalone cryptocurrency. It says it will develop new features on top of the bitcoin blockchain, but exact details remain to be seen.

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