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?
  • Splitcoins: 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, anonymity, etc.

In this article, the Cripto InterCambio blog will further explain what Splitcoin is and lists its main examples.

What is Splitcoin? Learn about the main ones

1.     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 decentralization.

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.

Check out a complete analysis of BCH in our article: What is Bitcoin Cash?

2.     Bitcoin SV (BSV)

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 transaction costs.

3.     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.

4.     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 network.

5.     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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