If you have plenty of knowledge about the Crypto or digital currency world, you may be familiar with the name of Bitcoin. From its invention, this cryptocurrency started to steal the spotlight of the Crypto industry.
In some years, Bitcoin became so popular that people started to use the term Bitcoin as the synonyms of Cryptocurrency. Bitcoin is considered the King of the Cryptocurrency world. But there are very few people who actually know about Bitcoin Cash and Bitcoin Gold.
Here in this article, I will tell you about Bitcoin Cash and Bitcoin Gold. I will give you all the basic knowledge and ideas that you need to know if you have a special interest in the Crypto industry.
What Is Bitcoin Cash?
After forking off from the Original Bitcoin currency, in the year 2017, Bitcoin Cash was developed. Previously, Bitcoin cash and Bitcoin used to share the same transaction histories and also have some similarities between them.
But in current days, Bitcoin cash is a totally separated form of currency. Just like Bitcoin, for Bitcoin Cash also the PoW or Proof of Work algorithm is used. In addition to this, ASIC or application-specific integrated circuit hardware is required for mining.
Why Was Bitcoin Cash Formed?
The founder of Bitcoin, Satoshi Nakamoto hoped that Bitcoin will be used as a peer-to-peer currency and will be able to handle transactions. In addition to this, the investor also thought that it would also compete with the traditional credit card transactions, for example, Visa.
But in actuality, BTC or Bitcoin was struggling to process large transactions. And as a solution to this, Bitcoin cash was developed.
With a 1Mb blockchain, the original Bitcoin was launched. It wanted to minimize the likelihood of fraud and spam, so this was in part. But with the increasing popularity of Bitcoin,n the transaction time slowed down. As there are a lot of things that it could process per second, this happened.
As a result of all these things, Bitcoin cash became its own distinct currency. It is able to handle much larger transactions more effectively and quickly. All thanks to the large blockchain of 8MB and 32MB.
What Can You Do With Bitcoin Cash?
Being a peer-to-peer currency, with Bitcoin cash, you will be able to transfer it directly to any other user. And here, you will not need a bank or any other third party. Due to the minimal fee, it is preferred a lot to use for large transactions.
There are also some instances where you can use Bitcoin cash as one of your payment methods, and particularly when you are purchasing something online. Though it has the potential to change the future, due to lack of understanding, it is still uncommon.
What Is Bitcoin Gold?
As another hard fork, in the year 2017, Bitcoin Gold was developed. The algorithm that is used herein Bitcoin Gold is totally different from Bitcoin and Bitcoin Cash. it is called ‘Equihash.’
With the concept of being more accessible than its fellow Cryptocurrencies, Bitcoin Gold was designed. And in order to mine Bitcoin Gold, all it requires is GPU or graphics processing units or graphics cards.
Apart from the mining habit and algorithm, Bitcoin gold works in precisely the same way as Bitcoin Cash and Bitcoin.
Why Was Bitcoin Gold Formed?
The mining of Bitcoin requires expensive computer hardware. As the result of the increasing centralization of Bitcoin mining, Bitcoin was becoming unaffordable and elitist.
Then, in order to allow ordinary people to mine Bitcoins using graphics cards on their home computer, Bitcoin Gold was developed.
What Can You Do With Bitcoin Gold?
One can use Bitcoin Gold in precisely the same way as Bitcoin Cash. You can use this legitimate Cryptocurrency for sending money to others. You also can use it for investment purposes.
The Difference Between Bitcoin Cash And Bitcoin Gold
After reading the article, you may get an overall idea about Bitcoin Cash and also Bitcoin Gold. from the information that I have provided above; you may have also developed a clear understanding of the differences that Bitcoin Cash and Bitcoin Gold have between them.
The algorithm that is used for Bitcoin cash is similar to Bitcoin. But for Bitcoin Gold, a totally different algorithm, ‘Equihash, is used.
Just like usual Bitcoin, mining for Bitcoin Cash is also required for high-end computers with ASIC or application-specific integrated circuits. On the other hand, using a graphics card or GPU one can mine Bitcoin Gold on his or her home computer.
For a better understanding, here is a chart of the differences between Bitcoin Cash and Bitcoin Gold.
|Factors||Bitcoin Cash||Bitcoin Gold|
|Mining Hardware Used||ASIC or Application-Specific Integrated Circuit Hardware.||GPUs or Graphics Processing Units.|
|Algorithm||SHA256, PoW, or Proof of Work.||Equihash|
|Total Amount of Supply||21 million.||17.1 million|
|Fork Date||August 2017.||October 2017.|
So, now I hope you get the whole concept of Bitcoin Cash along with Bitcoin Gold. These two are derived from Bitcoin, but the algorithms are different for both of them. And both of these have excellent potential to offer you high returns on investment.