Hard forking of Bitcoin’s blockchain has resulted in a new ASIC-resistant digital asset known as Bitcoin Gold. Bitcoin Gold is a new type of Bitcoin and was created on October 24, 2017. The new forked cryptocurrency possesses the same abilities as that of Bitcoin and uses the “Equihash” algorithm that allows mining with a graphics card.
Bitcoin Gold is also referred as BTG or Bgold and is a hard fork of the Bitcoin blockchain that implements changes to make mining more fair and equitable especially for crypto enthusiasts. Bitcoin Gold was launched with an aim to create a network where anyone is able to mine with ubiquitous GPUs.
Bgold was launched by Jack Lio, who is also the CEO of Hong Kong-based company, Lightning ASIC, which produces cryptocurrency hardware and mines mainly Litecoins.
Who Receives Bitcoin Gold?
If an individual owns Bitcoin before the creation of Bitcoin Gold, he/she is eligible to receive an amount of Bitcoin Gold (BTG) based on the number of Bitcoin the person owns. For example, if a user had 1 Bitcoin before the fork, they can now avail of 1 Bitcoin and 1 Bitcoin Gold.
Besides this, if a user has saved Bitcoin in one of the exchanges that support Bitcoin Gold, then the exchanges shall automatically credit the relevant BTG amount into user accounts.
Some of the exchanges that support Bitcoin Gold are:
How to Claim Bitcoin Gold
Before anyone sets off to purchase BTG, ensure that a new highly secured wallet is ready to hold the BTGs. Coinomi is the best Bitcoin mobile wallet designed especially for Android devices to claim Bitcoin Gold and users are required to move current Bitcoins to a new Coinomi wallet with a new seed or a private key. Other wallets such as Trezor and LedgerNano S are designed to provide the dedicated splitting tool to store BTG and BTC.
In a simpler method:
- Move your current Bitcoins to a new Bitcoin wallet with a new seed/private key.
- Export the seed phrase of your previous wallet.
- Import the seed phrase into Coinomi.
- Add Bitcoin Gold to Coinomi and change the derivation path.
- Claim BTG.
Let us go through in detail…
Step 1: Get Seed Phrase
The first step to claiming BTG is to get the seed phrase, which is 12-24 words long. The user must retain and recall this phrase to prove ownership of their Bitcoin before the fork. Failing to recall this phrase can result in the loss of access to the Bitcoin stored on the wallet. Sometimes, this phrase will be displayed by the wallet and therefore, the user must move all Bitcoins to a new wallet before acquiring Bitcoin Gold.
Step 2: Install Coinomi Wallet and Import the Seed
Coinomi is a highly secured multi-asset wallet that supports Bitcoins and other major altcoins and tokens. If users have already installed the latest version of the Coinomi wallet, they should create a backup of the existing wallet as this process may erase all the existing funds.
Also, a customer can download a Coinomi wallet from the Play Store app and choose “Restore a Wallet”. The customer is then asked to enter the seed phrase, which is 12-24 words in length and click “Next”. On the next screen, choose Bitcoin or any other coins if required. Do not choose Bitcoin Gold, we shall see this in the next step.
Step 3: Claim Bitcoin Gold
- Click on “+coins” inside the wallet menu
- Choose Bitcoin Gold
The following steps may be required based on the wallet that is importing BTG:
- Click on Advanced Settings
- Type in the phrase “M/44H/0H/0H” in the derivation path
Please note that the characters before the H are zeroes and not O’s.
The process described above repeats if a user has more than one Bitcoin wallet in Coinomi and wants to claim the equivalent BTG. Each repeated time it is necessary to replace the last zero with the account index, which means that for the second wallet, this would be M/44H/0H/1H, and for the third wallet, it would be M/44H/0H/2H and so on.
An Alternative Method For Claiming Bitcoin Gold Using Electrum
If importing the phrase seed into the Coinomi wallet fails, the user can opt for an alternative way to extract the private key for the Bitcoin address using Electrum, and sweep (import) the key into Coinomi.
The process is as follows:
- Download Electrum from the official Electrum website
- Create a new wallet
- Enter the seed phrase from the original Bitcoin wallet
- Go to “wallet”, “Private keys”, and choose Export, to export the private keys of the wallet
- Write down the private key that had Bitcoins in them prior to the fork
- Download and create a new Coinomi BTG wallet
- Sweep the private key into the Coinomi BTG wallet
Step 4: Buy Bitcoin Gold Via Credit Card
Any individual will not be able to buy BTGs directly, rather they should buy Bitcoins with Credit Card on BitPanda or CoinMama from any country. These Bitcoins can be converted to Bitcoin Gold using Binance.
Step 5 (optional): Sell Your Bitcoin Gold
An individual can buy Bitcoin, USD, or any other crypto coins by transferring Bitcoin Gold to an exchange. The only exchange that offers this service is HitBTC. However, Bittrex also accepts outside deposits but exchange rates are much higher. The account verification with Bittrex can also take a week to process, whereas HitBTC does not require account verification at all.
As soon as the user signs up with HitBTC, he/she can go to his/her account directly and deposit BTG.
As soon as the transaction details are entered, users can follow it on a Bitcoin Gold Block Explorer for frequent updates. After three confirmations, a user can view the transaction in his/her HitBTC account.
Bitcoin Gold fork is referred as a “friendly fork” as BTGs have no intention of claiming to be real Bitcoins. However, it has not received much support – BTG, when launched was nearly $800 but has since quickly declined to $200.
Featured Image: twitter