Bitcoin Gold: Everything You Must Know!
Alright, Bitcoin Gold is knocking on the door. Just about 11 hours to go. It is going to happen approximately on 24th October 2017, 6 AM UTC – tomorrow morning! There are some things to consider before this fork is going through. Now, I will guide to through it. In the end, I will also tell you the more risky but probably most profitable way.
What is a fork? What is Bitcoin Gold?
So, some people like Bitcoin as it is and some want to be independent and create their own “thing”. The people behind Bitcoin Gold do not like something about the mining of Bitcoin and decided to copy Bitcoin and adjust it to their needs. Such a copy is called a fork in crypto currencies. The issue of Bitcoin or blockchain in general is that you cannot simply change the protocol or technology in behind. Since I have bought Bitcoin and will forever in my life have them, one cannot simply “change” them. In order to do so, you have to copy everything of Bitcoin, paste it and adjust it.
A fork will especially copy the whole history of the coin it is forked from. The Bitcoin universe can be thought as a global ledger and each transaction is an entry in the ledger. All transactions and the whole current state of the ledger will be the same for Bitcoin Gold – up to a specific moment! And that moment will be tomorrow. That is, when the upgrade of the currency is executed and Bitcoin Gold will really split up from Bitcoin.
Does That Mean My Bitcoin Are Also Bitcoin Gold?
Yes!… well, only if you have prepared yourself! It is very, very important that you are the real owner of your own Bitcoin! You must be holding the Bitcoin on a private wallet in order to benefit from the fork and have as many Bitcoin Gold as Bitcoin at the time of the fork. Please follow my private wallet tutorial for that. Having your Bitcoin on an exchange or website will very likely result in the “loss” of not having Bitcoin Gold!
Having your Bitcoin on an exchange or website will very likely result in the loss of not having Bitcoin Gold!
Luckily for us, the Bitcoin Gold team states on their webpage, which wallets already claimed support for Bitcoin Gold. There are some wallets, which do not support currently Bitcoin Gold. For example, my usually recommended Electrum wallet does not support it. But do not panic! If you have your Bitcoin in a private wallet like Electrum you will always own the address linked to the private key. When the coin forks, you will have the private key to access the address on both chains. So, you can always claim your Bitcoin Gold.
But maybe you want to have your Bitcoin Gold credited at the time the fork is happening. Let’s have a look at the options.
The Bitcoin Gold Wallets
In case you want to use Bitcoin Gold as soon as possible after the fork and use a private wallet, there are some which have shown support already. I have tried all of them and give you an insight:
That wallet has a pretty solid UI and is quite easy to use. It does let you import private keys from somewhere else and it quickly setup. The deficit: You have to use your smartphone. Personally, that sucks. But other than that, it might be OK for you.
It is called a scam in a lot of forums. And they do not let you import other private keys. So, restricted options. This is a no-go.
That wallet is just out for Ethereum yet. It does say it will support more coins in the future. But, how do they want to credit you BTG for BTC if they do not even support BTC? I have no clue and would not use this wallet.
The Way to Get It All
Now the issue with the wallets is, that even if you claim your Bitcoin Gold directly, the most important and valuable trades are happening already. So, you are late to the party and may be able to exchange you BTG for a few $. Or maybe that’s not the case and BTG will rise up to the stars. However, I do not believe so and want to take the maximum profit out of it.
I have to emphasize that the following approach of mine is risky and is not recommend for most of you. But, as a CoinCoach, I have to tell you what’s possible out there.
If you are like me, you are already looking forward to the 1st of November to the SegWit2X fork. That is another fork besides Bitcoin Gold. So, I need a software or exchange which helps me to get both coins as quickly as possible and be able to trade them nearly instantly. You would not guess so, but I have found one exchange: HitBTC. The problem with an exchange is that you do not have your private key. But, I have very much trust in HitBTC since they have a daily trading volume of 170.000.000$ and support a lot of coins. They are on the market for quite a bit.
The special thing is that HitBTC will support both BTG as well as B2X (the SegWit2X coin) and directly credit them to your account when each fork is happening. The news of support for BTG and the SegWit2X status and support have been recently posted. They provide many more nice features like future trading on the upcoming B2X and unlimited deposits and withdrawals of cryptos.
You can do what you prefer, but I will use HitBTC to gain maximum benefit in these turbulent times of the market. What do you do?