Bitcoin Diamond (BCD): Everything You Need To Know
Bitcoin diamond was one of the most controversial hard forks of Bitcoin from 2017. At that time, there was a lot of speculation that this coin is a scam. Some even said that Bitcoin Diamond was only created to make some profit on the Bitcoin name while others claimed that you could lose all your personal information by claiming the Bitcoin Diamond that was created by the hard fork.
So far, there is no proof that this cryptocurrency is a scam although there were some pump and dump actions in the past. This is why we will explain everything you need to know as the cryptocurrency that named itself the ‘’Better Bitcoin.’’
Bitcoin Diamond History
The launch of Bitcoin Diamond happened on November 24, 2017 when the Bitcoin blockchain reached the block number 495,866. The problem at that time was that one of the founders of the cryptocurrency released nothing at that point. There was not even a whitepaper ready and no community formed. There was almost zero information about the cryptocurrency and there was no source code released or a GitHub account at that time. Despite all of the questions surrounding the new hardfork of Bitcoin, after several days of the launch, the price increased up to $94 which was also the all-time high for Bitcoin Diamond. Since then, the price is steadily sinking with a few spikes along the way.
The team behind the Bitcoin Diamond cryptocurrency released the source code after the launch and they also improved the communication later and became more active on social media. Many of the concerns of the project that labeled it as a scam were put to rest.
Who Created Bitcoin Diamond?
Bitcoin Diamond has a similar history with its parent Bitcoin meaning that it has an anonymous nature of the founders. Bitcoin was created by Satoshi Nakamoto which is a pseudonym for a programmer or a group of programmers and similarly, Bitcoin Diamond was created by a group of developers using a pseudonym. In this case, there are three developers under the names ‘’Evey’’, ‘007’’ and the third remaining completely anonymous. It was later explained that the names referred to development teams and that they are possible the locations of the foundation in Singapore.
How Does Bitcoin Diamond Work?
Just like other blockchains. Bitcoin Diamond is a decentralized network which aims to provide the users another way of exchanging value. Since it was forked from Bitcoin, it shares many similarities with the parent company although it has many differences as well.
One of the similarities is that it uses the Proof of Work algorithm and mining for transaction and block verification. The miners receive a reward for providing the computing power that is necessary to do verifications. It is different from Bitcoin because it doesn’t use the SHA-256 algorithm. The development team moved from this algorithm because it has become dominated by specialized ASIC miners that centralized Bitcoin to some extent.
Bitcoin Diamond uses the algorithm known as X-13 which is ASIC resistant and allows the miners to use basic GPUs to help secure the network and provide verifications. One change that Bitcoin Diamond made was the creation of 210 million coins which is 10 times as many coins as Bitcoin. BCD aims to fix the three major shortcomings of Bitcoin:
- Poor privacy protection
- High threshold required for new members
- Slow transaction speed
At the release there were about 170 million Bitcoin Diamond released with the remaining 40 million being held in reserve. It was also noted that Bitcoin Diamond was not created as a competitor to Bitcoin but only as a dividend for the Bitcoin holders making an effort to increase crypto adoption.
How to Buy Bitcoin Diamond?
The first thing you will need if you want to acquire some Bitcoin Diamond is to find a compatible wallet to hold it. Once you get the wallet, the easiest way to buy Bitcoin Diamond is to buy it from one of the supporting exchanges. You can’t get it in fiat so you will have to own some Bitcoin or ETH to make the purchase. Note that you will also need a trading account at the exchange that you want to use and in most cases it means that you have to submit a lot of personal information to meet the KYC and AML regulations.
Mining Bitcoin Diamond
You don’t have to buy Bitcoin Diamond in order to accumulate it. If you prefer you can simply mine it. Mining Bitcoin Diamond requires that you download and install the core client. You have to understand that this means you will be downloading the entire blockchain to your computer to become a node. You will need a huge amount of space on your hard drive to do this. The good news is that Bitcoin Diamond uses a new algorithm which is much easier than the one used by Bitcoin.
If you want to have better rewards, you have to consider joining a Bitcoin Diamond mining pool. The Bitcoin Diamond website has listed 6 pools you should consider. The pools combine the hashing power of all participants and make it easier to find blocks.
Bitcoin diamond was created to improve certain aspects of Bitcoin such as the network speed and transaction costs. Privacy is also very important to the developers team so it is important to explain the advantages that BCD has over Bitcoin.
BCD helped decentralize mining. With the centralization of Bitcoin miners, the problem is only getting bigger. However, BCD doesn’t suffer from this problem. The main reason for this is the spilt form the SHA-256 algorithm that is controlled by ASIC miners and moved to the GPU mining friendly algorithm.
It is much more faster and cheaper to send money this way which is one of the key reasons for creating Bitcoin. BCD has accomplished this in both ways. The BCD tokens let you store your wealth away from the officials and this is another major benefit of cryptocurencies in general. Unlike traditional bank accounts, there is no way a government entity could freeze your BCD funds.
While it is true that the developers of Bitcoin Diamond stay hidden, it is also good to remember that the developer of Bitcoin was also cloaked in mystery, privacy and anonymity. Satoshi Nakamoto launched Bitcoin to the world and disappeared leaving the blockchain for developers to improve and develop further. Part of this improvement process includes hard forks which are needed when the community is in disagreement over some of the Bitcoin aspects.
Bitcoin Diamond has made a lot of improvements to the core Bitcoin blockchain and while it may not be perfect, there is also not a single indication that it is a scam as well.
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