You must be wondering about the three different types almost bamboozled. You must have heard of bitcoins; if not, it is a cryptocurrency like many others out there. You can use it online, but you will not find any physical notes or coins of bitcoins. It exists only virtually. Coming to bitcoin cash and bitcoin gold, you can call them different types. They differ in many ways, but you can call them all cryptocurrency. However, there are many reasons why you must invest in bitcoins through platforms like Bitiq.
Simply put, you will find that the different types are better versions of the original bitcoin. Yet, they vary in many aspects. If you plan on becoming a cryptocurrency expert, you must know about them; if you are looking to invest in bitcoin, use platforms or try to invest through the bitqs app for an easy trade-off.
The Bitcoin evolution
Bitcoins came into existence in 2008. Many incidents have followed since that helped them reach their current position. You will find a little history about bitcoins, their founders, and further landmark incidents. As mentioned, people started using bitcoins in 2008. They saw bitcoins as an extra income. They used many ways to earn bitcoins and spend them online. Surprisingly the founder or founders of bitcoins never revealed their true identity. We have no information on whether the originator was a single person or a group. They launched the bitcoins under the name Satoshi Nakamoto.
It launched as a website under the domain bitcoin.org in 2008. Though they launched in 2008, people started using it only after a year. In 2009 the first transaction took place when someone bought pizza using the coins he earned from bitcoin.org. You will find the existence of many cryptocurrencies before bitcoins. Bitcoins are the most prevalent and most used cryptocurrency.
A year later, Nakamoto, who launched bitcoins, disappeared totally. He left Gavin Andresen in charge and not seen since then. Andresen became the lead developer of bitcoins. Later, they even established a bitcoin foundation that you will find the closest to bitcoins’ offline face. Bitcoins’ value reached the sky in the coming years, amounting to almost 1000 dollars in 2017. However, you find the values decreasing now; in the 7 or 8 years following its launch, bitcoins made colossal history.
There occurred one major fraudulent incident in 2010. Someone generated almost a million bitcoins. The leading experts immediately removed the generation and transaction from the blockchain, and no such incident occurred henceforth. However, bitcoins saw some minor frauds and controversies in the coming years. It even led to consequences to the extent of the government seizing the accounts. Though not in much use as before, bitcoins continue to exist and have regular users to date.
Bitcoin, Bitcoin Cash, and Bitcoin Gold
Bitcoin, cash, and Gold differ basically by a fork. You might wonder what a fork is. When programmers take the necessary code from existing software and modify it to use it as a basic, you call it a fork. You know Nakamoto developed bitcoins. Bitcoin cash came into origin in 2017.
The bitcoin cash originated when a programmer created a permanent divergence in the blockchain and bitcoin code. He made the blockchain, which stores all transactions of bitcoins, a copy that differed slightly. He developed from the basics of the bitcoin blockchain and used it g=for bitcoin cash. Initially, bitcoins had a limit of 1MB, and it meant that transactions had a considerable limit and couldn’t cope with the rising craze for bitcoins. It took a lot more transaction time, which interrupted the scaling.
When you research around, you will find that bitcoin cash originated when people wanted to increase bitcoins’ transaction speed. It led to the development of bitcoin cash, which allowed faster transactions than bitcoins. Andresen, in collaboration with other bitcoin associations at the time, set the bitcoin cash. To sum it up, the split in bitcoins created the bitcoin cash.
When bitcoin first came into existence, anyone could mine or generate bitcoins. But now you will find that you need specialized computers to mine bitcoins. Bitcoin gold surfaced. Bitcoin Gold makes it possible for regular people to generate bitcoin gold from any computer to rectify this disadvantage.
Bitcoin Gold, like Bitcoin cash, is a hard fork of bitcoin. You must understand that the hard fork is nothing but the permanent division. Thus you realize that bitcoin cash and bitcoin gold came into existence to rectify the shortcomings of bitcoins. You can call them improved versions of bitcoins. The value of bitcoins continues to rank first when it comes to value. Bitcoin cash and bitcoin gold amount to lesser dollars than bitcoins.
When talking about importance, you must note that all cryptocurrencies are unstable and keep moving to both extremes. They can rocket at one time and plunge to the ground at another in the market.
You might be wondering that bitcoin cash and bitcoin gold through improved versions of bitcoins have lesser value in the market. One factor is that they are new to the market and need time before their value increases.
Benefits of bitcoin cash and Gold
Bitcoin cash helps faster transactions. Thus you can use it as a mode of online money transfer. Another advantage of bitcoin cash is that you don’t need any bank for the transaction. It doesn’t require even associations like bitcoins. You can make all transactions directly to each other. You can also use Bitcoin Gold like Bitcoin Cash. You can generate bitcoin gold more easily than bitcoins. Apart from that, you can use bitcoin gold to make transactions as well.
The value of bitcoin cash and Gold is not as good as bitcoins. But you can avoid technical mishaps with these two forked currencies.
Want to become a cryptocurrency investor? Know where to start. You must note that bitcoins, bitcoin cash, and bitcoin Gold can be your next best investment. You can support or collect any of these cryptocurrencies. Investing in cryptocurrencies, especially bitcoins, has many benefits. A lot of companies and even travel agencies out there accept bitcoins as payments. It can help you save extra expenses online. The fact that they take cryptocurrencies promises that it will become more prominent in the future.
You can make more cryptocurrency payments and put all those stacked up bitcoins to use. Though all this is true, many people hesitate to invest in bitcoins, and others, confused. You would have understood that this is due to their high instability in the value of real money.
However, there are many reasons why you must invest in bitcoins. One possible explanation is that bitcoins, bitcoin cash, and bitcoin gold are all only limited. Bitcoins and bitcoin cash availability is 21 million, while Gold sums up to only 17.1 million. It guarantees that you can expect their value to retain, like that of Gold.
International markets value bitcoins. You must be aware that you can trade bitcoins in most countries. It gives people a positive attitude towards investments in bitcoins.
So how do you start investing? The process is quite simple. Firstly, get a bitcoin wallet. The wallet serves as your personal online savings bank for your bitcoins. Once you have your wallet, begin browsing for appropriate apps that allow bitcoin collection and other ways to earn bitcoins. Make sure you choose associations you can declare free from fraud and highly secure.
Choose ethical ways of earning bitcoins, bitcoin cash or Gold, avoid hazardous ones, and choose practical and appropriate methods like regular currency bitcoins to require time and effort. But your effort can go in vain if not appropriately strategized. Be very careful about cyber threats and fraudulent associations. You must make sure that all your bitcoins are always in your wallet; it can help you avoid robbery.
Differentiating Bitcoins, Bitcoin Cash and Bitcoin Gold
Bitcoins, Bitcoin Cash and Bitcoin Gold though forked currencies vary in many aspects. They share the same origin, but you cannot convert one currency to another. It proves that the variation is substantial.
The bitcoins’ blockchain has only a 1MB limit, while the Bitcoin Cash’s, otherwise known as BCH’s blockchain, has 8MB. In 2018, however, bitcoin cash also forked! It led to another currency called Bitcoin Cash SV. It had modifications to adjust the derailment in the purpose of bitcoin origin that bitcoin cash had brought.
Bitcoin gold is a democratized version of bitcoin. It means that today, you will find that bitcoins are available only to specific people in the community. In the case of bitcoin gold, you will not see this difference. Anybody can access it, and thus you can call it democratized. You will find bitcoins decentralized like bitcoin gold in its early years. Later due to its unavailability and changing of norms led to bitcoin gold. If you plan to invest in cryptocurrencies, you must know all the differences between such forked currencies. It would help if you had it to analyze the suitable cryptocurrency for your purpose and convenience.
The cryptocurrency market is always shifting and changing. Innovation is a daily happening and so are new currencies. You need to get updated and with the merits and demerits of different cryptocurrencies. Most importantly, you must know to differentiate and understand the various aspects of cryptocurrency. You will find a necessity for differentiation between bitcoins, Bitcoin Cash and Bitcoin Gold if you want to become an investor or expert in the same.
Interesting Related Article: “Why Bitcoin trading can be a good opportunity“