Altcoin

Bitcoin Gold: what is BTG, which wallets can you use, how can you get it for free and is it profitable?

Bitcoin Gold is a very young crypto-currency and is already part of the top ten in the crypto-charts. But is it worth it? We tell you what is important.


32.885x Views | 9 Comments


Bitcoin Gold: what is BTG, which wallets can you use, how can you get it for free and is it profitable? (c): fox17 - Fotolia.com

04.12.2017

Bitcoin is well known. But also its younger brother places fifth place with a capitalization of 5 billion Euros, and this after an infamous start. Many Bitcoin owners ask themselves, how they can purchase Bitcoin  Gold for free and which Gold wallets there are, anyway. Beginners wonder whether this is a profitable investment. We would like to share our experiences and opinions.

 





Summary: Bitcoin Gold (BTG/BGold) at a glance

  • created on 25th Oct 2017, available since November 2017
  • amount: ca. 16,8 million Bitcoin gold available, a maximum of 21 million in 2130 (like Bitcoin)
  • every 10 minutes one block (like Bitcoin)
  • block size: 1MB (like Bitcoin)
  • small transaction fees: 1-2 cents per transfer
  • adaption to difficulty for every block (Bitcoin: every 2 weeks)
  • includes Segwit (like Bitcoin)
  • includes replay protection
  • unique format of address: no confusion possible
  • increasing number of wallets

What is Bitcoin Gold and where does it come from? Keyword: hard fork

Bitcoin gold is a crypto-currency, i.e. it is meant for paying on the internet or in your everyday life instead of Euro or US Dollar. You can therefore consider crypto-currencies as further development of money. This money has a long history starting from barter in the stone ages, then banknotes and ending in fiat money. Crypto money is not controlled by central banks, but it is decentralized and controlled by smaller and bigger datacenters, which everybody can participate in. Based technology, the blockchain, is forgery-proof and thus offers a high level of trust.


Bitcoin Gold emerged from a so-called hard fork on the 25th October 2017. The blockchain was copied on block 491.407 (= status on 25th October 2017) and since then it has been working separately from its bigger brother. Particularly for people who already have Bitcoins this phenomena is of greater interest. That is because they have the possibility to get Bitcoin Gold of the same amount, and that is for free. Below we will describe step by step, how that works.
In the end Bitcoin Gold is a copy of Bitcoin. This is why BTG has similar characteristics, but at the same time it wants to compensate some weaknesses.

Behind Bitcoin Gold are some prominent figures of the crypto scene, such as Jack Liao, the CEO of the Hong Kong mining equipment manufacturer LightningASIC, or the Chinese mining tycoon and owner of the Bitcoin news portal Jinse.com.

 

Technical advantages of Bitcoin Gold compared to Bitcoin

  • it is more energy-saving because of Equihash-Proof-of-Work (Bitcoin: SHA256)
  • mining through GPU and not with expensive ASCI (=Bitcoin)
  • difficulty is adjusted with every single block (Bitcoin: every two weeks), thus you can react more flexibly to ups and downs

 

Our evaluation:
Bitcoin Gold tries to reinforce decentralization making hardware more profitable using cheaper hardware. Bitcoin is problematic because for private persons it is not worth mining Bitcoin anymore due to high energy and hardware costs. This leads to the fact that bigger datacenters acquire a dominant position on the market. Additionally they can cause major ups and downs because of mining of other crypto-currencies 8e.g. Bitcoin).
Therefore BTG tries to refocus on profitable mining, consequently on decentralization, actually the core characteristics of it bigger brother Bitcoin.

 

Gold / Bitcoin © "BillionPhotos.com - Fotolia.com"

 

This is why Bitcoin Gold had a bad reputation in the very beginning

Particularly during the weeks prior to the hard fork BTG had to struggle with a poor reputation: they accused the team of BTG of not being transparent with their actions and misusing the good name of Bitcoin while drawing much more attention to them because of the hard fork. This would not have been possible with a new Altcoin.
Moreover there is the imputation, that they had run so-called pre-mining, which has not been cleared yet. That means that they had created new blocks before the blockchain was even available for the public.

Our evaluation:
The action of the developers somehow contradicts the basic principles of a crypto-currency, on the other hand the developers cannot sell any own tokens because of a hard fork and thus earn any money. “Free money” of the present Bitcoin owners does not fulfill their desires. This is why the chosen procedure is rude, but in the end comprehensible. Also Satoshi Nakamoto, founder of Bitcoin, kept 1.041.715 Bitcoin for himself before making Bitcoin public. Why all this agitation then?


During the last days of October there was a cyber attack on the website of BTG which was then not available for a few days. It is not known who was responsible for this, but the attackers succeeded in defaming the providers at short notice.

Our evaluation:
Rude, but forgotten in a hurry. Sooner or later BTG won’t have any problems competing in the market, some initial obstacles will be forgotten. New people being interested in price gains will exceed the number of those skeptics. Why can we believe that? Well, BTG has already shown it in the second half of 2017 and now it is more precious than before.

 

Buy Bitcoin © "ulchik74 - Fotolia "

Best place to buy Bitcoin: Buy Bitcoins (BTC) safely?

A few years ago, most people mined their own Bitcoin, but in the meantime, it is much easier and safer to buy Bitcoin on an Exchange or with a Broker. For this, there are countless providers to buy bitcoins instantly or to trade via market places or exchanges. We have tested some Brokers and Exchanges and rated them for you.

Risky Replay-Protection?

During the first few days there was another weakness of BTG, namely the lack of a so-called replay-protection. Through this, transactions would have been registered not only in the Bitcoin Gold, but also in the Bitcoin blockchain.
Fatal outcome: in case of a transfer this would have caused a total loss of your Bitcoins due to the simultaneous transfer of BTG and Bitcoin.


Good news:
In the meantime the developers have come up with a full replay-protection and new wallet addresses. They also implemented them: thus Bitcoins cannot be lost due to transfer of BTG!
The developers of wallets have also perceived this. Consequently more and more wallets can host BTG (list: see below).

 

How many Bitcoin Gold can I get for free? Keyword: free money and Btcoin Gold wallet

And how can I get Bitcoin Gold? We have good news, again: present Bitcoin owners possibly get the same amount of Bitcoin Gold as they have BItcoin, for free!
There are several requirements:

  • You  should have already been owner of Bitcoins at blockchain 491.407 (ca. 25th October 2017, afternoon).
  • These Bitcoins had to be deposited on a wallet, which 1) enables you to have acces to your private keys (e.g. Exodus), or 2) supports bitcoin Gold (e.g. Ledger, Coinomi, see below).
  • Alternatively your Bitcoins were deposited (25th October 2017) on one of the following exchanges, which officially support BTG. Here can automatically receive your Bitcoin Gold:

BitcoinGold claim via Coinomi © "https://BitcoinGold.org/ Screenshot"

 

  • The same applies for the biggest German exchange Bitcoin.de* (here you can find the test), which not only supported the Bitcon Gold fork, but also the Bitcoin Cash fork.

 

And if my exchange does not support Bitcoin Gold?

Unfortunately we do not have good news in this case: if your Bitcoins were, e.g. on Polonies, there is no way of receiving the same amount of Bitcoins in Bitcoin Gold for free.
This is why we highly recommend securing the access to your private key. If you do not run marging or /lending/funding, it is always better to save your crypto-currencies in a cold wallet. The safest way to do that is Ledger Nano S (here is the test ). For alternatives, check next chapter.

 

Which Bitcoin Gold wallets do already exist?

Approximately one month after starting Bitcoin Gold already seven wallets support the new crypto-currency:

BitcoinGold claim via Coinomi © "https://BitcoinGold.org/ Screenshot"

 
By and by we are going to test all Bitcoin Gold wallets and deliver reports. You can check this by clicking their designations: Ledger Wallet, Coinomi, Bitpie, Guarda, Trezor Wallet, BTGWallet.online, Freewallet.


Our evaluation:
We are sure that during the next few months all major wallets will support Bitcoin Gold. This decision is, of course, dependant on the demand of the customers: if they want Bitcoin Gold, wallet providers have to make this feature possible in order to defend their position on the market.


We basically recommend storing your crypto-currencies in a cold wallet. The safest one seems to be Ledger Nano S (here is the test ).

 

Step by step instruction to get Bitcoin Gold: how do I get my Bitcoin Gold per private key?

As mentioned above, those already possessing Bitcoin on 25th October 2017 (afternoon) can get the same amount of Bitcoin Gold. In case the Bitcoins were on an exchange platform supporting Bitcoin, e.g. Bitfinex* (here is the test ), you get your coins deposited without any hurdles.  

This here is a step by step instruction for those who had their Bitcoins in a cold wallet and do have an Android device, this is how you can get your Bitcoin Gold for sure.

 


Step 0:  Have control of your Private Keys!

It is important that you control your Bitcoin Private Keys. This requires a Bitcoin Wallet with which your controll your own Bitcoin Private Keys. We recommend hardware wallets like the Ledger Nano S-Wallet or the Trezor Wallet. Other wallets are Exodus, Electrum or Jaxx.

 

Transfer all Bitcoin to Wallet where YOU have control of your Bitcon Private Key

If  you have your Bitcoin on exchanges or web wallet like Coinbase, Kraken, Bitfinex, Bittrex, GDax, etc., we recommend transferring them to a wallet where you have the control of the private keys (see above).

 

READ THIS BEFORE TRANSACTION

ATTENTION: BEFORE inserting the private key into a Bitcoin Gold (BTG) wallet, ALL BITCOIN (BTC) should be transferred to another Bitcoin Wallet, ie another private key. Because the Bitcoin (BTC) is then on another wallet, they are securely protected against unauthorized access even after the transaction of Bitcoin Gold on a BTG wallet. Otherwise, theoretically a rogue wallet has not only access to the Bitcoin Gold, but your Private Key also grants access to your "classic" Bitcoin (BTC)!

 

Step 1: Claim your Bitcoin Gold with "Coinomi" (Android only)

All users of Android devices, we recommend the app "Coinomi", download and install from "Play Store" or use the link above.

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 1: Create a new wallet
After starting select "Create a new wallet".

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 2: Secure the recovery phrase, set a password
Secure your new wallet with the recovery phrase: Save all words written in blue in exact order by writing them on a piece of paper.
Put a check and tap on "Next".
On the next page you have to repeat the recovery phrase in the exact order by tapping. Tap on "Next".

This is for security reason: If you lose your device, you can use this info to restore your wallet.

After that choose a password, re-type it. Tap on "Next" again.

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 3: Select BTG
Then select "BitcoinGold". Tap "Finish".

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 4: Terms of service
Here you have to agree on the terms of conditions set out by Coinomi.

 

Step 5: "Sweep wallet"
Your BTG wallet will then be displayed. Now tap on the 3 dots in the upper right corner and select "Sweep wallet".

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 6: Enter Private Key
Type the private key or scan the appropriate QR code. Tap on "Next".

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Step 7: Empty your paper wallet
Your available Bitcoin Gold will now be displayed. With "Confirm" they are now finally transferred and shown in the app.

Congratulations! You have made it!

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

Optionally, step 8: Withdraw BitoinGold
Tap "Send" in the upper right corner of the app. Here you can send your Bitcoin Gold from the app to a wallet of your choice. After five confirmations your coins will be received. The costs for the transaction: 1 to 2 cents.
 

BitcoinGold claim via Coinomi © "Coinomi Screenshot"

 

 

How does Coinbase deal with Bitcoin Gold?

This might be of importance to you: we have thoroughly tested Coinbase*. Read our test here.
Unfortunately Coinbase does not offer any ways of checking your private key of the Bitcoin wallet and saving it on your own. Therefore you cannot export the private key and, for example importing it in another wallet like Coinomi. This means: Coinbase does not allow you yet importing BTG directly into other wallets and using them.
Hope remains there: since the Bitcoin Cash (BCH) hard fork sparked an outcry of the Coinbase users, Coinbase promised an export possibility for Bitcoin Cash and Bitcoin Gold in January 2018.
Conclusion: at the moment there is no support for Bitcoin Gold, but in the next 4 to 8 weeks we will learn more. We will update this article the moment there are any further developments.

 

Which effects does Bitcoin Gold have on Bitcoin?

One month after the start of Bitcoin Gold it is obvious that the Bitcoin-Gold-Hard-Fork has not had any major effects on the development of Bitcoin: Bitcoin is rocketing from one peak to the next.

 

Is purchasing Bitcoin Gold profitable?

This is an interesting question! How will Bitcoin exchange rate develop? Of course, we do not know that either, but we would like to move one hard fork back: when Bitcoin Cash was separated from Bitcoin, there was no positive feedback at all. It was classified as a stillbirth, this was at similar exchange rates like Bitcoin Gold today, namely around 350 US-Dollars (300 Euros). In the meantime it dropped to 220 US-Dollars (180 Euros). Today, approximately four months later, Bitcoin Cash is worth more than 2,000 US-Dollars (1.300 Euros) and initial skepticism seems forgotten.


Our evaluation:
Bitcoin Gold will experience similar things: born as a scapegoat it is part of the Bitcoin family, though. This is why there will be a place for it on the market by tendency. Beginners have a disposition to be interested in turnovers and not the history of a coin.


This is the reason why we recommend checking returns in the long term instead of being discouraged at short notice.
Investing in Bitcoin Gold can be interesting right now, because future development cannot be precisely forecasted. The decision of buying can only be made by yourself!

 

Where can you buy Bitcoin Gold?

Since the Altcoin has only been available for a short time, selection is very limited. Live trading is possible on:
HitBTC
Bitfinex
Binance
YoBit
Gate.io
Changelly
Abucoins
Change Now
Evercoin

Tests of these exchanges will be made available in the medium term. Due to our thorough experiences we recommend purchasing Bitcoin gold per Bittrex or Bitfinex.


All other commonly used platforms like Anycoindirect, LiteBit or Kraken do not offer Bitcoin Gold and do not even plan to do so.


Other exchanges do not offer live-trading yet, only with features, others would like to follow soon. This is an overview:

BitcoinGold claim via Coinomi © "https://BitcoinGold.org/ Screenshot"

 

Our evaluation:
The number of exchanges will grow according to the increasing demand.

 

Buying Bitfinex Gold on Bitfinex and saving 10% of trading fees

Register on Bitfinex* (here is the test ). A verification is not necessary! Registration using the link Bitfinex.com or selecting the referrer code “o0ui9F5j1e” you can safe 10% of the trading fees within the first 30 days.

BitcoinGold claim via Coinomi © "bitfinex.com Screenshot"


Step 1: the desired amount of Bitcoin Gold has to be kept as equivalent value in the “exchange wallet” in Bitcoin or US Dollar. You can only exchange the amount of Bitcoin Gold which is available in the wallet.


Step 2: select “trading”, go on to “BTG” and then choose trading pair “BTG/BTC”:

BitcoinGold claim via Coinomi © "bitfinex.com Screenshot"


Step 3: update the exchange rate in the field “order form” clicking the green button. Fill in the desired amount (“amount BTG”) and click “exchange buy”.

BitcoinGold claim via Coinomi © "bitfinex.com Screenshot"

 
Your offer has been placed and can be accepted by other traders. Normally an exchange only lasts about a few minutes. Your order can be checked by clicking “orders” beneath the exchange rate. Moreover it can be changed afterwards.


Please note:

Larger orders might be exchanged by the piece. Do not get nervous! If the price is rocketing, your order might be adjusted.


Our evaluation:

Fast, easy to use and cheap. We can highly recommend it.
Disadvantage: exchange only for US-Dollar and Bitcoin – there is no exchange for Euro available yet.   



C

12.12.2017

Coinomi for desk

Coinomi wallet for desktop works with any wallet as long as you can export your seed or private key. https://www.coinomiwallet.org/

E

25.10.2017

Mrs

If I have my bitcoin in a paper wallet, how do I get the BTG?

N

24.10.2017

Bitcoins vs Bitcoin gold

If you've got your bitcoins on Kraken will you get the free bitcoin gold as well? Or only on Bitfinex etc?

R

22.10.2017

No Replay Protection yet

See: https://github.com/BTCGPU/BTCGPU/issues/51

G

14.10.2017

Fraction of bitcoin

What if I have a fraction of a bitcoin on October 25th, will I get the same after split?

O

18.10.2017

Mr

Please what price does bitcoin gold likely to start with on the exchange.

Your Name will be displayed next to your comment.

1 + 4 =



Bitcoin Gold Bitcoin Wallet Bitcoin Hardfork BTG BTC

32.885x Views | 9 Comments




Advertisment

Interesting Articles

Investment

Coinbase Fee Structure: is Coinbase free to use?

Coinbase Fee Structure: is Coinbase free to use?

Is Coinbase free to use and how much do buying or selling Bitcoins, Ethereum and Litecoin on Coinbase cost?

Coinbase is considered to be one of the largest bitcoin exchanges in the world, even though it supports only 32 countries at the moment. With three payment methods (credit or debit cards, PayPal, and bank transfers), it is important to understand the fee structure in order to properly plan transactions at the platform.
 
This guide provides exactly that, listing all costs associated with depositing, withdrawing, buying and selling bitcoins at Coinbase.

read more »

Investment

Reviewing CoinTracking: our experiences with detailed instructions

Reviewing CoinTracking: our experiences with detailed instructions

With this tool you can keep a clear overview of your own crypto-portfolio: current value, profit or loss of trades, balance sheets, realized and unrealized profits, tax returns and much more!

CoinTracking is an innovative management tool for over 5,400 existing crypto-currencies. With this you can check your own portfolio on the desktop as well as using the mobile app at any time. All data can be imported manually, via csv file or automatically via API. The basic version is free. If you intend to manage many trades, we recommend a lifetime account.

read more »


Bitcoin Mining

Hashflare

Cloud Mining Provider for Bitcoin, Ethereum and other Altcoins

Genesis Mining

Genesis Mining - profitable Cloud Mining for everybody?



Bitcoin Exchanges

Bitcoin.de

German Bitcoin and Cryptocurrency Marketplace

LiteBit.eu

EU Crypto Currency exchange with over 40 crypto currencies for immediate purchase (SOFORT, Giropay, SEPA)

Bitpanda

Buy Bitcoin, Ethereum, Dash, Litecoin with Credit / Debit Card or SOFORT (only Europe)

Coinmama

Buy Bitcoin & Ethereum with Credit / Debit Card in Minutes



Bitcoin Wallets

MyEtherWallet

When it comes to security, ease of use and a user-friendly interface, My Ether Wallet (MEW) comes in.

Electrum Wallet

The Electrum wallet is fast, efficient and lightweight as well as safe to use. In fact, it's one of the safest wallets according to users.

Trezor Wallet

Secure hardware-based Bitcoin and Altcoin Wallet

Exodus Wallet

Desktop light wallet for various crypto currencies and Exchange service






Cryptocurrency Prices & Charts