Despite their names, Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Bitcoin Private, and other digital currencies are not identical to Bitcoin. It is true that it is mainly based on Bitcoin, and its names are derived from it, but they are different things. Which we will talk about in this article.
Bitcoin is a decentralized cryptocurrency based on open source code. Anyone can take the code, modify it, and create their own version. And this is exactly how the other coins that we are going to talk about were created.
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What is a hard fork for Bitcoin?
In computer programming, branching refers to the process that results in the development of different versions of a program based on open source code, that is, when developers take existing code, modify it, and then use it as the basis for their development. own project.
This is exactly what other projects with names like Bitcoin Cash-BCH and Bitcoin Gold-BTG have done. The developers took Bitcoin's main code, BTC, known as Bitcoin Core, and tweaked it.
The developers also chose to fork the Bitcoin blockchain, copying its transaction history and using it as the basis for their blockchain. In other words, if you owned 10 Bitcoins at the time Bitcoin Cash was released, you will have 10 Bitcoins and 10 Bitcoin Cash.
However, this is a one-way event. That is, you cannot convert any Bitcoin Cash you own into Bitcoin, not without selling Bitcoin Cash at market price and then buying Bitcoin at market price. And if you buy Bitcoin after doing the redevelopment fork, you won't get free Bitcoin Cash.
Currencies like Bitcoin Cash and Bitcoin Gold are known as hard forks because they create a permanent fork in the blockchain production chain. This software development of the currency puts us in front of completely new currencies, not as soft forks that only create a temporary fork.
People often disagree with the design decisions that are made in the Bitcoin project, forks that allow disgruntled developers to modify Bitcoin in their preferred ways.
That way, they can bypass the usual process of gaining consensus on Bitcoin Core and implement their own ideas. These hard forks of bitcoin are altcoins, that is, a completely different digital currency from Bitcoin, but they are based on the code of bitcoin.
Critics argue that these coins take the name Bitcoin, and that many are only released to make a nice profit for developers and early adopters. Proponents argue about its potential to improve Bitcoin's vulnerabilities.
What gives value to these coins?
As with the base currency Bitcoin itself, these coins, developed from it, have value (or have no value) according to the evaluation and use that people make of them: they are equal to what people give them value. Some Bitcoin experts believe that these coins are worthless and distract from Bitcoin.
Just as they believe that altcoins are largely meaningless, others believe that Bitcoin has many problems and that these currencies developed from it may be the future, and that one or more altcoins will replace Bitcoin to become the first digital currency. in the future.
In the end, the price of Bitcoin and all the currencies developed from it are determined by the market, in other words, how much people are willing to pay for it. You can find out what people think about the value of these coins right now by checking a website like Coinranking.com.
Bitcoin Cash-BCH:
Bitcoin Cash is designed for low fees and fast transfers. It is called as a kind of electronic cash thanks to these characteristics. Of course, Bitcoin Cash is more complete, so the network can support more transfers with it. This means that it is the most valuable Bitcoin ever developed.
That seemed especially compelling in December 2017, when the Bitcoin transfer fee was over $ 40.
But that didn't hold up. In April 2018, the fee for Bitcoin transfers fell to roughly $ 1.15, while the fee for Bitcoin Cash is less than $ 0.04.
Proponents of Bitcoin argue that changes to Bitcoin Cash are not necessary and that the Lightning Network will bring near-instant Bitcoin payments in the near future.
Critics have pointed out that Bitcoin Cash appears to have been confusedly engineered with Bitcoin. They both use bitcoin.com and the Twitter account @Bitcoin to pay for Bitcoin Cash. But Bitcoin Cash is not the same as the original Bitcoin - BTC. This is where the Bitcoin Cash website claims that Bitcoin Cash is the real Bitcoin, but the larger Bitcoin community disagrees.
Bitcoin Cash is the fourth most valuable currency after Bitcoin, Ethereum, and Ripple as of April 16, 2018. You can buy Bitcoin Cash on Coinbase as easily as buying Bitcoin.
This was the first independent coin developed from Bitcoin and it was launched on August 1, 2017 and provided the inspiration for the development of the rest of the coins.
Bitcoin Gold-BTG:
Bitcoin Gold addresses another problem that some see in Bitcoin: the increasing centralization of Bitcoin mining, which requires specialized equipment and makes it impossible for the average person to modify and invest.
Specialized hardware known as application integrated circuits (ASICs) is required to achieve profitable mining. Therefore, only mining companies with great potential can do so and have power on the grid.
Bitcoin Gold addresses this problem by changing the SHA-256 mining algorithm on Bitcoin with another algorithm called Equihash. The latter algorithm is still under development and requires a huge amount of electricity and computing power, but is designed to be more challenging for ASIC-based optimization.
Bitcoin Gold is designed so that ordinary people, or at least ordinary people with powerful graphics processors (GPUs), can reuse Bitcoin on their computers again, making the network more decentralized.
As of April 16, 2018, Bitcoin Gold was the 26th most valuable coin and the third most valuable bitcoin after Bitcoin Cash and Bitcoin Diamond, according to Coinranking.com.
Bitcoin Gold was launched on November 12, 2017.
Bitcoin Diamond-BCD:
Bitcoin Diamond combines a number of elements to create a better Bitcoin, including Segwit (a development protocol), Lightning Network (from Bitcoin), larger block sizes (from Bitcoin Cash), and a GPU-optimized mining algorithm (similar to Bitcoin). Gold).
It also offers some privacy by encrypting the values of each transfer so that people cannot tell how much currency is sent in a given transaction by examining the public blockchain.
This is the 16th most valuable coin and the second most valuable bitcoin, and as of April 16, 2018, it has surpassed Bitcoin Gold.
Bitcoin Diamond was launched on November 24, 2017.
Private Bitcoin-BTCP:
This is also a development of Bitcoin, but it is also an integration with the Zclassic coin. In other words, anyone who owns Bitcoin-BTC or ZClassic-ZCL will receive Bitcoin Private in a 1: 1 ratio.
So if you have 10 Bitcoin and 10 Zclassic, then you have 20 Bitcoin Private.
While Bitcoin allows people to view transfers on the public blockchain, Bitcoin Private focuses on privacy. As the project website explains, "Payments are posted on the public blockchain, but sender and recipient information and other transaction metadata remain unrecognizable."
This is the 37th most valuable coin and the fourth most valuable bitcoin as of April 16, 2018.
This coin was launched on February 28, 2018.
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