Although their names may sound similar to Bitcoin, Bitcoin Cash and Bitcoin gold are very different. Bitcoin was mainly created as an open-source coded decentralized cryptocurrency that can be mined.
Hard Fork is when developers take the existing code and then try to modify it for using it in their own projects. Bitcoin Cash and Bitcoin Gold are hard forks that are created from a modified code. The hard forks create a permanent split in the blockchain system, unlike the soft forks that create a temporary split.
There are a lot of arguments going on between BCH vs BTG and which one is more feasible to invest. In order to understand the difference, we need to understand what bitcoin cash and bitcoin gold are.
Bitcoin Cash is a type of cryptocurrency that was created in the year 2017. It is a fork of Bitcoin which increases the size of the blocks which allows for more transactions to take place.
Bitcoin was created as a peer-to-peer cryptocurrency that was used for everyday transactions. Bitcoin has become a major investment vehicle due to the attention it has gained over the years. The number of transactions also increased which led to many transactions being queued for confirmation. This led to Bitcoin Gold with more transactions. The average number of transactions per block on Bitcoin ranges from 1000 to 1500 whereas Bitcoin Cash is up to 25,000 transactions in a single block.
Bitcoin Cash has a larger block of 8 MB allowing for more transactions per second faster than Bitcoin itself.
Bitcoin Gold is one of the hard fork open-source cryptocurrency which was started in October 2017. There are many reasons such as a growing customer base and the difference in goals that result in hard fork currencies. The main reason behind Bitcoin Gold is to ensure that Bitcoin remains Decentralized. Now, one of the main features of Bitcoin is that it is not linked to any central authority. Therefore, doing this is to ensure that it remains that way.
The main purpose of creating Bitcoin Gold was due to the mining process. The developers of Bitcoin were under the impression that, by creating a new mining algorithm, it can prevent a large number of mining operations in a single go.
In order to mine Bitcoin, one has to invest a huge amount of hardware or they get bypassed since the computers are not equipped to process such high profile transactions. By creating Bitcoin Gold, the algorithm has changed so much that the mining process is not any faster if expensive computers or hardware is available.
While all the names sound the same, there are some BTG vs BCH differences that one should be aware of before making an investment:
As long as Bitcoin is popular there will be a lot of hard forks that will be created. Since the currency system is unregulated, they are extremely volatile and go through many ups and downs. Therefore, it is important to understand them thoroughly before investing.
Bitcoin Cash is one of the most popular forks of Bitcoin and tops the list of cryptos with high market capitalization. Bitcoin Gold is also not far behind.
The main reason behind Bitcoin Gold is to ensure that Bitcoin remains Decentralized.
Bitcoin Gold is trading at $10.72, as of April 30, 2020.
CoinSwitch.co is the world’s largest cryptocurrency exchange aggregator which supports 300+ coins and over 45,000+ pairs. It provides an easier way of trading through global exchanges like Binance, KuCoin, IDEX, Huobi, Ethfinex, HitBTC and Cryptopia without creating an account on them. If you are interested in buying cryptos, do give it a try!