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Bitcoin in ‘Gold’ and ‘Diamond’, This Duo BTC Hard Forks Suddenly Rallied Out of the Blues

BTC hard

The first and largest crypto asset by market capitalization, Bitcoin (BTC) has been on an impressive rally recently. Bitcoin (BTC) conquered the $16k, $17K, and $18k resistance levels to trade at a new yearly high of $18,940. Not only Bitcoin, but the Altcoin space was also hit by an explosive rally. The second-largest cryptocurrency, Ethereum (ETH) rallied to highs above $500, a level last traded since 2018.

The third-largest crypto asset, Ripple (XRP) stole the show when it breached the $0.3 key resistance to trade at highs near $0.5. Other Altcoins within the top 100 categories also embarked on breathtaking rallies. Bitcoin, the ring leader of the crypto market received various stamps of approval.

Rick Rieder, BlackRock’s CIO of Fixed Income recently stated this “Bitcoin is here to stay as it will take the place of gold to a large extent [because] it is so more functional than passing a bar of gold around.”

Bitcoin is sometimes referred to as “digital gold” for its unique store-of-value characteristics. Bitcoin’s most ardent supporters believe that it will eventually take a sizable portion of gold’s market cap as more investors realize its utility. Priced in gold, 1 Bitcoin is presently worth 9.961 ounces.

Bitcoin forks – Bitcoin Gold (BTG) and Bitcoin Diamond (BCD) may be less talked about but they highlight the intrinsic value of the flagship asset.

Interestingly, these duo BTC hard forks rallied alongside other Altcoins after been previously dormant. On a seven-day basis, Bitcoin Gold (BTG) and Bitcoin Diamond (BCD) are up by 29% and 21% respectively. The question remains – Why would these coins that were previously dormant suddenly surge higher? No one seems yet sure as to what led to their rallies. It seems unlikely that this is the beginning of a longer-term rally for these crypto-assets.

BTG/USD Daily Chart

Bitcoin Gold (BTG) is presently 74th on the coin market cap while Bitcoin Diamond (BCD) ranks 97th. Bitcoin Gold (BTG) is presently trading at $9.57.

Bitcoin in ‘Gold’ and ‘Diamond’

Bitcoin Gold is an open-source cryptocurrency, a hard fork of Bitcoin (BTC). Bitcoin Gold was formed to “make Bitcoin decentralized again”. It might sound contradictory as Bitcoin is already decentralized, but it had to do with the mining process. It aims to change the Proof of Work (PoW) mining algorithm as the mining process speed is slower on specialized equipment than on standardized equipment. Bitcoin Gold’s developers were also focused on issues relating to distribution, transparency, and protection besides the goal of “re-decentralizing” it.

Schnorr signatures are on the roadmap list, which would enable multiple inputs to be signed with a single signature so that we can have enough space in the blockchain, and not overcrowding it up.

This feature might make BTG grow like anything, along with the integration of the lightning network.

In five years, Bitcoin Gold might finally achieve with the execution of the BTG Plasma Specification Project. An analyst mentioned that this might cause it to ascend the ranking order to among the top 20 cryptocurrencies.

Bitcoin Diamond (BCD) is also a hard fork of Bitcoin. The fork occurring at block height 495866, implemented changes including a new proof of work algorithm to deter attacks on the network and segregation of transaction signatures from transactions on the chain for additional capacity allowing a greater number of transactions per second on the network as a whole.

Image Credit: Stock Photo Secrets

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