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5 types of Bitcoin explained

5 types of Bitcoin explained

5 types of Bitcoin explained

Thu Apr 16 2020 05:00:00 GMT+0000 (Coordinated Universal Time)

Bitcoin was what started it all for cryptocurrency. Its evolution through the years is outstanding and continues to this day. Many altcoins were created afterwards and followed on from its initial concept. Among these altcoins are different kinds of Bitcoins and each has its own beneficial gain. 

In October 2008, a mystery person using the moniker ‘Satoshi Nakamoto’ created Bitcoin which is a decentralized application that allows you to send money via a peer-to-peer system. This began the path to Bitcoin being used for everyday transactions and the subsequent creation of other crypto coins.

Ever since it was created, Bitcoin has been broken down into sections that you can invest in. These are:

  • Millibit
  • Microbit
  • Satoshi

Additionally, the original has also branched to different kinds of Bitcoin, classified as hard forks. Hard forks are essentially similar to bitcoin, but they use different mining systems and prioritize other goals to make an upgraded Bitcoin.

Hard forks under bitcoin are listed as:

  • Bitcoin Cash
  • Bitcoin SV
  • Bitcoin Gold
  • Bitcoin Diamond

These bitcoins were able to make their mark in the cryptocurrency market in their own unique way. Learn more about each kind of bitcoin, so you can decide which one you would want to invest into.

The original bitcoin explained

Bitcoin Core (BTC) is the mother model for altcoins and bitcoins made from the fork of its blockchains. By 2020, it’s been predicted that Bitcoin will grow significantly during the latter part of the year. 

The main features of Bitcoin is its user anonymity and blockchain-based system. You can send money across the world with your identity concealed in transactions at minimal cost. The blockchain has strong security features, making it incredibly difficult for anyone to have access except the people engaged in the transaction. 

It can also process transactions much faster compared to fiat currencies.

Due to its features, Bitcoin has been adopted as an official currency in some countries around the world because of its stability over the years. 

It remains one of the most stable cryptocurrencies due to its mining process that makes sure every transaction is quick and secure. 

How does bitcoin mining work?

Bitcoin uses a complex stronghold to keep the coins safe. To make sure that transactions are fast, there are bitcoin miners who secure the network by defending it from attackers. They are also in charge of solving complex mathematical problems to make sure that everything goes smoothly in the blockchain. 

For its mining process, it uses a program called SegWit2x. This program is what allows Bitcoin to create hard forks under it. People who invested in bitcoin were able to shift their investments to hard forks like Bitcoin Cash or Bitcoin Gold.

SegWit2x was implemented into the system to fix the scalability issue that bitcoin has had since its development. It increased the block size, so there can be more space for bitcoin miners to process quicker  transactions. The big block size also allows more data to be stored in the blockchain.

Bitcoin fractions

Under Bitcoin, there are three bitcoin fractions you can see when you visit some crypto platforms:

  • Millibitcoin (MBTC)

A millibitcoin has the value of 1/1,000th of a bitcoin or 0.001 BTC. It has alternate names like millibits, millicoins, and millies. 

  • Microbit (μBTC)

Similar to a millibitcoin, the value of a microbit is derived from one millionth of a Bitcoin. In numerical form, it is worth 0.000001 BTC. Its value is also the equivalent of 100 satoshis.

  • Satoshi (sat)

Satoshi has the smallest value among the bitcoin units because it is worth 0.00000001 BTC, one-hundred millionth of a bitcoin. Its name originates from the creator of Bitcoin.

Back in 2008, a bitcoin developer called reebok proposed the concept of having 1/100 bitcoin be named after Satoshi. In the end, the proposal was revised to adopt its current value.

Where can you buy, sell, or trade bitcoins?

For all kinds of bitcoins, you can purchase your fraction or a full bitcoin unit from the following sites:

  • Coinbase: One of the most popular platforms to get your Bitcoins in the U.S.A. and majority of Europe. You can purchase bitcoins and fractions of it on Coinbase. You can also use your bitcoin to trade for other altcoins
  • BitPay: You can accept crypto payments on the website, e-mail, or on your mobile. Use it to go shopping online or to interact with over a thousand businesses around the world. 
  • Coindesk: Check the graph and how much the price is in real-time at Coindesk. There are details about bitcoin shared along with information on how much it has changed in the past 24 hours.
  • LocalBitcoins: On, you can purchase bitcoins by using your fiat money. You can also sell or trade your bitcoins and check its prices.
  • Square’s Cash App: Through this app, you can send money to anyone, including fractions of bitcoins. This option is only available in the U.S.A. region.

Popular wallets to keep your bitcoins

Keep your bitcoins safe by putting them in a cold, hot, or hardware wallet of your choosing. 

  • Ledger Nano S: Use this hardware wallet to hold 23 different crypto coins or ERC-20 tokens. It utilizes Ledger Live, an asset that lets you check your balance for all crypto coins in real-time. 
  • Trezor: It is a hardware wallet that has advanced security features to keep your bitcoins and keys safe online and offline.
  • KeepKey: This hardware wallet doubles the protection by giving extra security measures like PINs, additional passphrase protection, and unlimited wallet addresses.
  • Exodus: Store your bitcoins on Exodus, a desktop wallet. Manage your bitcoins through your Windows, Mac, or Linus on an organized and well-designed interface.
  • Electrum Wallet: This wallet prioritizes safe and quick transactions between you and your clients. If you lose your funds, it provides a way for you to recover it.

Bitcoin Cash (BCH)

Bitcoin developers wanted to make big changes in Bitcoin to further improve its performance. They decided to make a branch of it, resulting in Bitcoin Cash’s creation. 

The important features it has compared to Bitcoin is that its transaction fees are slightly cheaper. Its scalability allows it to be faster and make more transactions per second like Bitcoin can. This coincides with its goal of fixing the scalability issue bitcoin has faced throughout the years. 

Although it performs the same as Bitcoin, it is still relatively new compared to its predecessor. However, it’s possible it can reach up to the same status as Bitcoin due to its advanced scalability.

Buy, sell, or trade BCH on these sites

  • Coinbase: Manage your crypto coins with ease when you use Coinbase as your platform. It’s used in 32 countries and over $150 billion worth of cryptocurrency has been exchanged. You can use it on Android or iOS. 
  • CoinEx: On its homepage, you can view the value of every Bitcoin Cash when you trade it with other crypto coins. Its value updates in real-time and neatly categorized by different currency markets.
  • Bittrex: Execute high-speed transactions and use its secure digital wallets for a comfortable experience for all users like in Bittrex.

Popular wallets to keep your BCH

  • Yenom: This wallet is great for people who are beginners in investing Bitcoin Cash. You can send or receive BCH to family or friends with ease.
  • Electron Cash: Everything from your funds and keys will be protected on your computer. It’s quick and you can recover any funds through a secret phrase. 
  • Badger Wallet: Store your BCH in a Badger Wallet because it lets you make decentralized exchanges. Use its CashID to use your keys to sign in web pages.

Bitcoin SV (BSV)

Craig Wright created a hard fork called Bitcoin SV from the Bitcoin Cash blockchain. Modelled after the original bitcoin, Bitcoin SV aims to continue the legacy by following what’s written in Satoshi Nakamoto’s paper on a ‘A Peer-to-Peer Electronic Cash System’. This is why its name is Bitcoin SV, which stands for Bitcoin: Satoshi Vision.

Bitcoin SV aims to fulfil their vision by accomplishing the four main ‘S’ fundamental pillars:

  • Security
  • Safe and Quick Transactions
  • Stability
  • Scalability.

Another goal it has is to continue the plans of Bitcoin by replacing all payment systems around the world. They are doing this by providing cheaper rates, secure bitcoins, and an overall excellent user experience. 

Its block size has reached 128MB, which allows it to perform more transactions per second. The blockchain protocols are similar to BTC and BCH, however, miners have the option to join a mining pool called SVPool to promote BSV.

Where to get your BSV

  • BitForex: It utilizes its advanced technology by processing 1,600,000 orders per second and trading over 200 cryptocurrencies. 
  • Huobi: Since 2013, you can access it anywhere on Android or iOS and you can spend on crypto coins by using your credit card.  
  • Binance JEX: There are option contracts you can use to create offers to the buyer or seller and set a date between you two to ensure the transaction.

Wallets to keep your BSV

  • HandCash: Use this Google Play or iOS app to easily send payment to the recipient by using $handles. 
  • CentBee: This mobile wallet mainly serves for BSV and you can buy or send BSV with others in this app.
  • ElectrumSV: A desktop wallet dedicated to BSV and you can use various hardware wallets like KeepKey or Trezor to keep your keys safe. 

Bitcoin Gold (BTG)

Bitcoin Gold was founded in 2017 by an international team spearheaded by Jack Liao. The goal was to maintain bitcoin’s decentralization and reformat the mining system for Bitcoin blockchains, so anyone can have access to it.

It costs a lot to become a Bitcoin miner and you usually have to specialize in the area to join. They wanted to change this by making mining accessible to everyone. 

Instead of using the ASICs from Bitcoin and Bitcoin Cash, BTG uses GPUs that allow anyone to mine rewards. Developers noticed how Bitcoin limits the number of people who can mine the blockchains, so they made it available for a broader audience to join. They also changed the mining algorithm from the usual SHA-256 to Equihash. 

Equihash Algorithm

Equihash was developed by Alex Biryukov and Dmitry Khovratovich and this algorithm has been successful for its purpose in other altcoins like Zcash. It allows the work to be distributed evenly to anyone who is interested in becoming a BTG miner. 

Platforms to exchange your BTG

  • Liquid: There are high liquidity markets it offers for fiat currencies like euros, yen, and dollars. It has one of the lowest fees when you make a trade.
  • BitFinex: A platform famous for digital currency and it gives you the option to perform margin trading or peer-to-peer financing.
  • BleuTrade: It grants the opportunity to perform direct exchanges in huge amounts with low costs in a matter of 2 seconds.

Popular wallets to keep your BTG

  • Bitcoin Gold Core Wallet: This is an official wallet made by Control your funds with ease and know that it’s safe because the wallet is made by the creators of BTG.
  • Coinomi: Exchange over a thousand tokens with your BTG or vice versa and it uses a Seg-Wit program. It comes with 168 fiat currencies and 25 languages. 
  • Atomic Wallet: There are over 500 tokens you can use like Ethereum or Ripple to exchange for BTG. 

Bitcoin Diamond (BCD)

Team Evey and Team 007 were Bitcoin miners who wanted to put a different spin in bitcoin. It was originally called Bitcoin Core, but they weren’t satisfied with the results. They improved its network protocol to create Bitcoin Diamond.

Changes started when the team made bigger blocks to ensure more transactions and high-speed exchange time. There is an abundant supply of BCD worth around 210 million coins. Developers continue to aim for a larger amount while maintaining the affordability of each coin. 

Similar to BTG, it uses GPUs as an easier way to mine for anyone who wants to join. It removes the exclusive aspect to mining from Bitcoin and attracts a wider audience to be involved in the network. 

Crypto platforms for your BCD

  • Coincodex: Watch how the prices move real-time as it generates the percentage growth rate and graph. You can also check out its news, guides, and exchange rates.
  • Binance: It is the world’s leading cryptocurrency exchange and you can trade anywhere from its app in a few minutes. 
  • KuCoin: View the different markets you can invest or trade in. You can also use your credit card to purchase crypto coins.

Popular wallets for your BCD

  • QT: These wallets are used for professional clients. You can back up your wallet information to your computer and everything is encrypted to ensure security. 
  • Wallet: You can purchase the bitcoins you’re interested in, including BCD, and it makes transactions faster with InstantPay. 
  • Amon Bitcoin Diamond: Liquify your funds into BCD anytime and anywhere with this wallet. Track your funds and you can freely send it to others without any third-party fees. 

Every hard fork derived from Bitcoin Core (BTC) has its own perks because they all share the same goal in improving what Bitcoin has for years. Now you can make easier transactions and manage your bitcoins well by choosing the bitcoin that suits your needs.

Words by: Clarissa Panganiban

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5 types of Bitcoin explained