The rates of Bitcoins are skyrocketing for a couple of years. It is always on the news and also made its way onto some popular TV shows. Many people find it interesting and wish to try their luck in Bitcoin trading but as they see names like Bitcoin Gold, Bitcoin Cash, Bitcoin Private, and Bitcoin Diamond they get perplexed.
Bitcoin is a decentralized cryptocurrency having open-source code. Therefore anyone can get the code and modify it into a new version. In this way, different versions of Bitcoin were created. In this post, let’s get to know the three main Bitcoin forms.
- Bitcoin [BTC]
- Bitcoin Cash [BCH]
- Bitcoin Gold [BCG]
The denominations of these different cryptocurrencies are super confusing. Bitcoin is regarded as a peer-to-peer financial system. It aims to resolve plenty of real and perceived issues with the central banking system. Thus, people can get cash directly in their hands by averting the government’s monetary policy.
You can buy bitcoins Australia using cash at the lowest exchange rates. Visit bitcoindealer.com to get more information on the process.
Why Bitcoin Gold got created?
The concerns that the leaders will gain the entire control on Bitcoin made creators develop Bitcoin Gold. Bitcoins are mined using special computer equipment called mining hardware. It is energy-intensive and very costly. Therefore, the original Bitcoin program made the elite more and more powerful. China has cheap energy, so currently bitcoin mining is done a lot there.
Bitcoin Gold is designed to position the mining back in regular people’s hands. It is designed to mine BCG with regular computers.
How did Bitcoin Cash get introduced?
Scalability problem made programmers add features and create a new version called Bitcoin Cash. It is designed to reduce the transaction lag time, which bitcoin has been struggling with. Original bitcoin was designed with a 1Mb blockchain to reduce fraud and spam.
At the start, it was fine but as users increased bitcoin started experiencing transaction lag time tremendously. The transaction amount processed per second was very limited in 1Mb. Bitcoin Cash was created with 8Mb blockchain all prepared to handle the future increase in traffic.
How are Bitcoin, Bitcoin Cash, and Bitcoin Gold related to one another?
All three kinds have the same basic programming. In the market, all three follow one another’s performance. This means if in the trading market bitcoin price increases, then BCH and BCG will also be going up. However, the cryptocurrency market is notoriously fickle.
Therefore get to know about bitcoin trade and gain knowledge to make a well-informed investment decision. All three cryptocurrencies can be purchased or sold on various exchanges at a small fee. Currently, BCG and BCH are less costly per unit than Bitcoin as they are still new on the market.
Right now, cryptocurrencies are under the legal radar because it is mostly self-regulated. There is no assurance that the majority of the platforms adhere to self-imposed rules. It is also essential to know that cryptocurrencies experience high volatile swings in any direction every now and then.
The technology is remarkable! Let’s see how this government unsupported a new kind of cryptocurrency impact the financial world in a few years.