Bitcoin is the most well-known digital currency on the market, but there are several other digital currencies whose names begin with Bitcoin.
If you want to know what is the difference between Bitcoin and Bitcoin Cash, Bitcoin Gold and other currencies? Stay tuned to Farnet.
These digital currencies are similar only in name, but different from bitcoin. The difference between Bitcoin and other digital currencies is that cryptocurrencies such as Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, and Bitcoin Privet are bitcoin-based and use the same name, but are different.
First, let’s get to the answer to the question, what is Bitcoin?
What is Bitcoin?
Bitcoin is the most well-known digital currency on the market and a decentralized digital currency developed based on open source code. Any developer can download this code, modify it and bring their desired currency to market. This is the way other cryptocurrencies have developed.
What is a Bitcoin Fork?
In the world of computer software, branching occurs when developers remove, modify, and use existing code for their project. This process is performed exactly by projects that bear the name of Bitcoin, such as Bitcoin Cache (BCH) and Bitcoin Gold (BTG).
These developers have actually removed and modified the original bitcoin code (BTC) or to modify the bitcoin core. In addition to the original bitcoin code, they also used its blockchain technology. They copied the transaction history of this digital currency and used it as their blockchain base.
In other words, if you owned 10 bitcoins at the time of the release of the bitcoin cache, you would have received 10 bitcoins, but this is only done once. You can not convert bitcoin cache to bitcoin, but you have to sell it at the current price and then buy bitcoin.
If you buy bitcoins after the split, you will not receive a bitcoin cache. Cryptocurrencies such as Bitcoin Cache and Bitcoin Gold are known as hard bifurcations because they create permanent gaps in the blockchain, while soft bifurcations produce only a temporary bifurcation.
People are often opposed to the design decisions made in the Bitcoin project, and the sharp split allows developers who have such an idea to improve this digital currency in the way they want.
What is Altcoin? The difference between Bitcoin and Altcoin
They can bypass the usual process of reaching an agreement at the core of Bitcoin and put their ideas into action. Bitcoin branches are altcoins that are not bitcoins, but are developed based on bitcoin code.
Critics say the coins use the name bitcoin and were created solely for the benefit of the developer as well as early buyers. Proponents of her case have been working to make the actual transcript of this statement available online.
What makes these cryptocurrencies valuable?
Like bitcoin, the value of affiliates is determined by the value that people place on them and are willing to pay for them.
Some Bitcoin fans believe that these splits are worthless and only distract people from Bitcoin. They also deem penitents worthless.
Some people believe that Bitcoin has many problems and its branches can be the future of this market segment. Some believe that one or more altcoins could be worth more than bitcoin in the future and become the most expensive and valuable digital currency in the future.
Ultimately, it is the market that determines the value of bitcoin and all its branches, or in other words, their value depends on the amount of money that people are willing to pay to buy it. You can see their prices instantly by visiting different sites. In the following, we will introduce a number of bitcoin branches.
What is Bitcoin Cache (BCH)?
Bitcoin is designed for low wages and high transfer speeds. Depending on the features as well as the name chosen for it, people will realize that they are dealing with an electronic money.
Bitcoin Cache is larger block size, which means that the network can support more transactions. Bitcoin Cache is the most valuable hard bitcoin spin on the market.
The difference between bitcoin and bitcoin cache
The development of such a cryptocurrency seems reasonable because in December 2017 the high cost of bitcoin transactions reached $ 40, although in April 2018 this cost dropped significantly to $ 1.15, although the cost of bitcoin cache transactions is less than $ 0.04. It is significantly different from bitcoin.
Bitcoin fans believe that some bitcoin cache changes are not necessary, and SegWit now reduces bitcoin transaction costs, as well as the Lightning network, which allows for fast and cheap bitcoin transfers.
Critics say the bitcoin cache is designed to be confusing. Although some people try to make Bitcoin Cash great and popular, this digital currency is different from Bitcoin, and while the Bitcoin site claims that BCH is real Bitcoin, the large Bitcoin community does not accept this.
In April 2018, BitcoinCash became the fourth most valuable digital currency in the world after Bitcoin, Atrium and Ripple. Bitcoin Cash was the first major Bitcoin subsidiary to enter the market in August 1996, and other affiliates were inspired by it.
What is Bitcoin Gold (BTG)?
Bitcoin Gold solved another bitcoin problem, which was to increase the focus on bitcoin mining, which required special hardware, and also prevented ordinary people from accessing it.
This hardware, known as Special Purpose Integrated Circuits (ASICs), is essential to profitability. Mining companies can use them and therefore occupy a large volume of the network.
To overcome this problem, Bitcoin Gold removed the SHA-256 mining algorithm and replaced it with another algorithm called Equihash. This algorithm still requires a lot of power and computing power, but it has become much more difficult to optimize for ASICs.
Bitcoin Gold is designed for ordinary people, or at least people who have access to a powerful graphics card, and they can extract these passwords with their computer.
In April 2018, Bitcoin Gold became the 26th most valuable digital currency in the world and the third branch of Bitcoin after Bitcoin Cash and Bitcoin Diamond.
What is Bitcoin Diamond (BCD)?
Diamond Bitcoin combines several features to create a better bitcoin. This digital currency includes Segwit and the Bitcoin Lightning Network, the large size of the Bitcoin Cache block, and the optimized algorithm for the Bitcoin Gold GPU.
This digital currency also promises users that it will protect their privacy by encrypting transactions.
People can’t figure out how much digital currency has shifted with each transaction by examining the public blockchain. In April 2018, Diamond Bitcoin became the 16th most valuable digital currency and the second Bitcoin branch after Bitcoin Cash.
What is Bitcoin Privat (BTCP)?
Bitcoin Privat is a bitcoin subsidiary, but has also been integrated with ZClassic ciphers. Anyone who owns Bitcoin or ZClassic will receive a 1: 1 Bitcoin Privat. For example, if you have 10 bitcoins and 10 ZClassic, you will receive 20 bitcoins privately.
Users can view bitcoin transactions in the public blockchain, but Bitcoin Privat focuses on users’ privacy, and although transactions are published on the public blockchain, the sender, recipient, and other parties to the transaction remain anonymous.
In April 2018, Bitcoin Privat became the 37th most valuable digital currency and the fourth most valuable bitcoin branch.
The digital currencies introduced in this article were introduced in mid-2017 or early 2018, which is not surprising considering that the value of bitcoin has reached strange records to date. To date, several other branches of Bitcoin have been released but have not gained much popularity among users.
As long as Bitcoin is popular with users, people will continue to generate Bitcoin branches. Using the name Bitcoin and changing the features of this digital currency can attract users’ attention.
If you have experience in different branches of Bitcoin, be sure to share it with us and other users in the comments section.