Bitcoin Gold: End of Mining Cartels

by CryptoCheets — on

After Bitcoin Cash, the Bitcoin Gold is yet another hard fork that came out from the main blockchain of Bitcoin and is now steadily making its way into the mainstream cryptocurrency market. Now forks aren’t always just random ways to earn more airdropped tokens. Hopefully, new forks might provide an opportunity to correct the wrongs of previous models. In Bitcoin Cash’s case, it was the size of the blocks, and Cash increased it even though confirmation times also increased. What Bitcoin Gold is trying to achieve is an attempt to break the monopoly of mining cartels over cryptocurrency mining.

Mining was an excellent incentive to be part of the network, in the early days of bitcoin. The theory was that ordinary people could use their computing power, or at the very best, a dedicated graphics card of the system to earn more bitcoins as a reward for our efforts to help secure the transactions.

But, in the recent years, mining has structurally changed. Companies have invested millions of dollars, and since mining involves crunching numbers, the more resources are put into a mining hardware, the more likely it is to earn more bitcoins.

This hardware race has exhausted technological capacity, and it costs the planet millions of dollars worth of electricity. Ironically, it has also led to the centralization of mining and bitcoin assets. As of today, powerful mining cartels influence the outcome of Bitcoin, but is this problem about to change?

How Bitcoin Gold Aims to Solve the Problem?

It has been realized that susceptibility to ASICs is the main thorn in the issue. By introducing an alternative mining algorithm, the Bitcoin Gold (BTG) aims to return the power of mining to the masses where it belongs. The new algorithm will be much less susceptible to ASICs style of mining, and once again, people will be able to mine coins easily with GPUs, similarly to the early days of bitcoin. This is the outcome Bitcoin Gold is hoping for.

What lies in the future?

While Bitcoin Gold seems like a good aspect, it is still a fringe currency. Bitcoin Cash was in a similar situation, but seems to have gained some market traction. But for now, let's see where Bitcoin Gold and its democratized mining can bring to the future of blockchain.

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