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Cryptocurrency
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.

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.

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 a 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’.

Bitcoin Diamond

Bitcoin Diamond Basics

Bitcoin Diamond is the child of a decision between two Bitcoin miners back in 2017. Team 007 and Team Evey were the miners behind the creation of Bitcoin Diamond, they have stated that the reason behind it was to improve the ways Bitcoin could work because at the time they weren’t happy with the cryptocurrency’s performance.

It is so refreshing to see a community doing the work on the product they are passionate about. It is sometimes very hard to remember or come up with a product that has had such a large participation from the customer base. That’s what we love about cryptocurrencies, the fact that any given customer can take matters in their own hands, change the way it works or make a completely new protocol like Evey and 007 did when they made Bitcoin Diamond.

Unfortunately, however, despite all the passion from the community and all the collaborations haven’t lead to Bitcoin Diamond exploding in popularity. In fact, as of recently, it has been going downhill, and nobody knows if the situation will be improved and by when.

As we said the miners are probably the most influential people in the cryptocurrency market, they have the power to improve pretty much every aspect of the crypto. This was what drove Evey and 007 to make the following changes:

Bitcoin Diamond transaction
  • Transaction times needed to be a lot faster. Imagine you are trading on the platform and you notice that Bitcoin has gone down by 50% in the last minute (this is a hypothesis don’t get too excited), so your natural reaction would be to buy it as soon as possible, but the fact is that you will not be the only one that will have this idea. Actually, if 6 people have the same idea your plan for acquiring Bitcoin at a very cheap price could be thwarted because the network can only process about 7 transactions per second, and we all know that every single second is crucial in the cryptocurrency market. The BCD team wanted to make the transactions similar to Mastercard and Visa which means they wanted to make thousands of transactions available for processing per second.
  • Transaction fees were important, especially the lowering of them. The popularity of Bitcoin hasn’t been the only thing that has been increasing. Along with the popularity, transaction fees of Bitcoin have also joined the ride and risen a substantial amount in the few months. Therefore the team behind Bitcoin Diamond, Evey and 007 decided that in order to make the market a lot more stable and to actually have accurate results of funds funneling in and out of the market, they needed to lower the transaction fees so as not to make traders pay more or equal amounts in transactions as the product amount they were buying, which would be ridiculous.
  • The image of Bitcoin has changed in everyone’s eyes after it reached the peak of its popularity last winter. Yes, it’s true that the price has come crashing down, but still, it is gliding in the $6,000 margin, which is still quite expensive. Therefore Evey and 007 conclude that as long as Bitcoin remains to be very expensive, new users will have pretty much no incentive to join the fun and start trading with it, they believed that Bitcoin should be for everyone.

Are Transactions similar to BTC?

Bitcoin Diamond and Bitcoin have a lot of similarities in the code that is used to operate them. The similarity in the code has also translated into the similarity in transaction methods. But it is still important to find out exactly what it is that BCD is doing the same as Bitcoin. The reason we are comparing the two is that we believe that they are directly correlated with each other and to help newcomers of the industry to have something familiar to compare BCD to.

Bitcoin Diamond stats

First, we would like to break down the whole structure of a blockchain database because Bitcoin and BCD are both basically networks that people use to transfer information. Blockchains are exactly the databases that house all this information. Therefore you may imagine how long the list on the blockchain can be, regarding the fact how many people trade with cryptos on a daily basis. The whole structure is composed of quite weird words for people who are not tech-fluent or programming-fluent. Basically what you need to know that the moment you make a transaction, the program knows that it needs to check it and in the case of it being valid it will transfer it to the Blockchain where it will be stored. Blocks are groups of transactions that are transferred to the blockchain because making transfers one by one would take a long time. Networks of these processes are heavily influenced by miners, therefore judging by the amount of people mining, each platform requires 10 minutes to process a block of transactions. However, the main similarity that Evey and 007 decided to implement was the lightning network which they started this July. The lightning network allows the platforms to process the information immediately, so without having to add the transaction information to the block to be processed as a whole. Therefore it will make the processing event a lot smoother and faster. This was pretty much every similarity in transactions that BTD and BTC have. Let’s look at the differences, shall we?

Differences

We are about to list the differences between Bitcoin and Bitcoin Diamond transactions, that also explain how BCD is going to be faster and easier.

  • Block sizes are completely different for the two parties. Bitcoin Diamond blocks can hold a lot more information than Bitcoin blocks. To be more specific, Bitcoin blocks can hold up to 1MB of transaction information, whereas Bitcoin Diamond blocks hold up to 8MB. So from this information, we can easily say that within that 10-minute time-frame Bitcoin Diamond’s blocks are processing 8 times more information than Bitcoin blocks.
  • The difference also comes with the scarcity of Bitcoin. The fact that there is such a small amount of Bitcoin on the market, only 21 million coins, is what’s making its price so inaccessible for many new users. Bitcoin Diamond is trying to improve that by making the supply 10 times larger, almost 210 million coins on the market. Evey and 007 hope that this will be the key factor in deciding the price of BCD and making it reachable and affordable for everyone.
Bitcoin Diamond Mining
  • Simplified mining is also a key difference between the two coins. Miners are what keeps the industry going, they perform tasks on the platform and in return get some rewards. You’ve probably already researched what’s the biggest cost of having a cryptocurrency mine, and we are more than sure that you found that electricity is the answer. You see, in order to perform these tasks, people use ASIC miners who are always hungry for power. A medium sized mining operation can use power amounting to a small village. It also requires to be sufficiently cooled, therefore making it a large hassle for every-day people to start mining Bitcoin. Evey and 007 found this to be very un-userfriendly because it completely segregated investors from miners. Therefore they have made their mining systems a lot easier and accessible for everyone by giving BCD the ability to be mined by a GPU.

Is Bitcoin Diamond safe and trustworthy for you?

Most of the popular tech companies like Facebook, Instagram, Twitter and Google store the information of our accounts on central servers who’s numbers are limited. Therefore if there is any major hacking attack, then all the information they have about us can be put at risk. Fortunately, however, if you are a crypto trader you are safe in the hands of the blockchain. You see, the information on blockchains are spread on numerous different computers, making the job of a hacker 10 times more difficult and time-consuming.

The main criticism that blockchain is receiving is that it is not encrypting enough user information, thus making it vulnerable to access from the government. Bitcoin Diamond decided that this needed to be addressed and will encrypt a lot more useful information. However, any additional privacy features have been scrapped, because the team believes that it will all be for nothing, regarding the regulations that cryptos are starting to face with user data.

A quick summary of BCD

Bitcoin Diamond is a new take on Bitcoin itself. Some people call it a rip-off and the “wannabe” Bitcoin. However, the coin has been able to create a large and dedicated following with the crypto community. It also looks like the developers of the project, Evey and 007 are dedicated to making the platform thrive. What we like about the whole ordeal is that they are giving their best to make cryptocurrencies available for traders of every caliber, beginners and veterans alike. Hopefully, this article was informative to you and if you decide to jump on the Bitcoin Diamond trade then we wish you good luck!

By ForexNewsNow Team

This is a general account of the ForexNewsNow Team. It is used to published exclusive content carefully crafted by our experts as well as it is used to bring you the most recent industry highlights from our guest contributors that wish to remain anonymous.

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Comments (2 comment(s))

YazeN
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".
    GeorgeT
    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.