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by ForexNewsNow Team on February 7, 2018

What is Bitcoin Diamond (BCD) and should you invest in it?

Bitcoin BTC is regarded as the first cryptocurrency of its generation. Its design is quite basic and this has made it necessary to come up with hard forks. Bitcoin is not able to conclusively solve the anonymity and privacy issues and this is where Bitcoin Diamond BCD comes in. This cryptocurrency is basically based on Bitcoin core. It doesn’t have much wallet support other than the BitPie wallet, though.

The developers of this cryptocurrency have invested in the privacy part of the coin. The transaction amounts and balances of the BCD users are encrypted differently from how Bitcoin (BTC) does it. This privacy design of this coin is somewhat similar to that of Monero digital coin. The difference between this coin and BTC is that its supply is multiplied by 10. This means that while 1 million Satoshi = 1BTC, 10 million Satoshi = 1BCD. Eventually, there will be 210 million BCDs in circulation; 10 times more than Bitcoin.

Understanding Bitcoin Diamond (BCD)

Bitcoin Diamond uses legacy signing for all non-SegWit transactions and BIP143 for SegWit transactions. This is unlike BTG and BCH which use the BIP143 for all transactions. Because of the large number of BCDs which will be in circulation, it is not clear exactly how BCD is a fork of Bitcoin. The miners of the coin use X13 algorithm which engages GPU miners fully. According to BCD developers, this altcoin does not require Bitcoin blockchain as other forks of BTC do. The distribution of this coin is not as generous as that of BTC because you only get 0.5 BTX per 1 Bitcoin you had as of block 492820. Unlike many of the cryptocurrencies launched in 2017, it is stated on BCD’s website that the coin was created as a ‘free dividend for BTC holders’.

The performance of Bitcoin Diamond

BCD was launched in November 2017 when cryptocurrencies were performing extremely well. It was in November when Bitcoin touched a high of $19,500. Immediately BCD was launched, its price started rising to reach a high of $103 on 25th of Nov. Just like many other cryptocurrencies which peg their success on Bitcoin, BCD’s price dropped steadily to finally touch a low of $8.36 on February 2nd.

The performance of Bitcoin Diamond

On February 3rd, the price of BCD surged to reach a high of $49.84. Even though the price went down on 6th February to $28.8, it regained on the 7th when it traded for $34.36 at 0600 (CET). The volumes traded for this coin aren’t consistent because on January 13th BCDs traded were $187 million while the previous day it was only $9.5 million. Two days later, the volumes dropped to $17 million. On February 6th, the volume traded was $8.2 million. The market cap of the coin is zero.

Should you invest in Bitcoin Diamond?

As stated earlier, it is not easy to discern whether the BCD is created for ideological, monetary or technical reasons. Currently, Bitcoin Diamond doesn’t provide the necessary development source code for exodus which provides a smooth experience for crypto users. BCD is controlled by an anonymous Bitcoin Diamond Foundation whose registration information and whereabouts remain unknown. Moreover, BCD has an anonymous and unproven development team. This makes it extremely difficult to pledge support for the coin. Even though BCD seems to be performing quite well on several exchanges where it is listed, there isn’t enough information on the crypto for cautious investors to go forward with.

Comments (2 comment(s))

March 26, 2018
BCD is a diluted verson of Bitcoin and will be useful when more mainstream adaptation is present. While many despise it, I believe all forks will only strengthen Bitcoin. In the years to come, Bitcoin's value will come from it acting as a store of value where code will be usedby many forks, who will pay Bitcoin holders a share of their token - from 10-1 to 1-1. Think of the value Bitcoin CasH added to Bitcoin Holders. YaZEN Cryptophilosophy "from one seed, one apple tree, from one apple tree a 1000 apples, with each apple containing multiple seeds".
    March 26, 2018
    I agree with YaZEN crypto and the Cryptochaos Crew. Bitcoin must be hub of sorts, where value is found in peripheral spheres or forks.