Cryptocurrency Explained #6: Bitcoin Cash & Bitcoin Gold
Bitcoin Cash and Bitcoin Gold? Are they the same as Bitcoin? Most beginners will wonder why is there Bitcoin Cash and Bitcoin Gold. Bitcoin Cash and Bitcoin Gold are a hard fork of Bitcoin, or simply put, people are unhappy with some functions of Bitcoin and decided to change it while keeping most of the features the same.
Bitcoin Cash came about when a group of developers wanted to increase Bitcoin block size limit. Bitcoin’s block size limit had resulted in increasing transaction fees and delayed processing of transactions that could not fit into a block in 2016. This situation contributed to a push to create a hard fork to increase the block size. Bitcoin Cash was launched in early August 2017.
Bitcoin Gold’s purpose is to make Bitcoin mining decentralised again by restoring the mining functionality with common Graphics Processing Units (GPU) instead of specialised customised chipsets to mine Bitcoin. Due to the mining of Bitcoin requiring special chipsets, it is being controlled by a few manufacturers who sell their products to a select group of industrialised miners. This results in centralised mining and breaks the value of Bitcoin - decentralisation. Thus, by changing Bitcoin’s algorithm, anyone can start mining with a standard, off-the-shelf laptop computer. Bitcoin Gold was launched in October 2017.