What is Splitcoin? – Learn all about Five Bitcoin Hard Forks
Bitcoin, the first cryptocurrency
in history, was created in 2009. Thanks to BTC, it became possible to make
money transfers without the need of a third party, such as a bank or a
government. In addition to this absolutely revolutionary feature, Bitcoin
offers anonymity, speed, extremely low transaction costs, and security.
Due to all these advantages over ordinary money, it is not surprising
that it has become so valuable during its first decade. The time when a Bitcoin
was worth a few cents has passed, as now it is valued in thousands of dollars.
Competing cryptocurrencies have emerged, trying to bring improvements or
innovations in relation to the original Bitcoin. This is fueled by millions of
dollars entering this market and its popularization around the world. There are two types of cryptocurrencies:
Altcoins: They are cryptocurrencies created with a new architecture, code, functionality, and even different purposes than Bitcoin. Some borrowed aspects of the original BTC code; others were literally programmed from scratch. Among the most famous are Ethereum, Dash, Monero, and EOS. Learn more about them in the article:Why invest in Altcoins?
they are hard forks of the original
Bitcoin. They use BTC’s architecture and code, but provide timely innovations
in regard to aspects like the size of the blocks, the mining process,
In this article, the Cripto InterCambio blog will further explain what Splitcoin is and lists its main examples.
What is Splitcoin? Learn about the
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) is the largest hard fork of the original Bitcoin in terms of market capitalization, with an estimated value of over 8,000 million dollars. Currently, a BCH unit costs just over $400 USD.
This currency was introduced to the market in 2017. Since then, it has
quickly gained popularity in the crypto world by offering the same advantages
as the original Bitcoin: anonymity, security, cheap transactions, speed, and
However, it has a greater processing capacity than Bitcoin. With BTC,
each validated transaction block has a maximum size of 1 MB, while with BCH it
is 8 MB. This allows much faster transactions than Bitcoin, which usually take
more than 10 minutes to be completed.
Bitcoin SV is the
cryptocurrency with the highest value gain in 2020. Its price has risen more
than 100% in a single day. It has become the fifth most important currency in
terms of market capitalization, with a value of about 6,000 million dollars.
Right now, a BSV costs about $340 USD.
BSV is based on a hard fork of Bitcoin Cash. Its creator,
Craig Wright, states that some changes in the BCH code would have distorted the
idea contained in the original Bitcoin. Therefore, the acronym “SV”
means Satoshi Vision. The idea is to restore the BTC project. It offers an even
greater scalability potential than the other two projects, in addition to lower
Bitcoin Gold (BTG)
Bitcoin Gold (BTG) is
another hard fork of the original
Bitcoin. It was put into circulation in 2017. This cryptocurrency was designed
with the purpose of providing innovation in a particular aspect: mining.
Although the original
Bitcoin is decentralized in the sense that there is no central authority that
mediates all transactions, its mining process tends to make it more
centralized. Due to the fact that its network is very large, super-powerful
computers are needed to validate the blocks. As a result, Today’s BTC mining is
almost exclusively done by large investors.
BTG solved this
problem by inserting a new mining algorithm: Equihash-BTG. It allows any
individual user to mine Bitcoin, therefore the network tends to be less
centralized. Its estimated market capitalization value is $224 million, which
makes it the 39th largest cryptocurrency. Its unit
value is approximately $12.70 USD.
Bitcoin Diamond (BCD)
Bitcoin (BCD) also
entered the market in 2017. It is currently the 47th largest cryptocurrency by
market capitalization, with an estimated value of $171 million USD. A BCD unit
is worth around $0.92 USD.
Just like with other
hard forks, this Splitcoin emerged to solve some issues of the original
Bitcoin, such as transaction speed and centralization of mining.
It uses a Proof of
Work (PoW) algorithm called X13 that guarantees the decentralization of the
extraction process, making it possible for individual users. In addition, its
transaction blocks are larger, which ensures greater scalability on the BCD
Bitcoin Private (BTCP)
BTCP was designed with
an unusual mix. It is a hard fork of the original Bitcoin that uses another
cryptocurrency’s code, Zclassic. Currently, this Splitcoin has a market
capitalization value of about $884,000. A unit costs about $0.18 USD. It is the
949th largest crypto, well below the Splitcoins mentioned above.
It was put into circulation in 2018. One of its main objectives is to make the Bitcoin network more decentralized. In order to do this, it borrowed Zclassic’s mining code. Also, it allows completely anonymous transfers, with an option through private keys.
Conclusion: Splitcoins diversify the cryptocurrency market
As mentioned above, there are relatively successful Splitcoins such as
Bitcoin Cash and Bitcoin SV that stand firm in the top 10 in terms of
scalability and can compete with the largest altcoins in the crypto world.
They promise their investors wide adoption in the near future by being
as reliable as the original BTC project, but with some improvements. Can they
replace the original Bitcoin? We’ll see in the coming years.
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