Everything to know about the Bitcoin Diamond 'hard fork'

image

Bitcoin Cash, Bitcoin Gold, and now Bitcoin Diamond. Bitcoin is less than a decade old but it has birthed three 'precious' children, all in the space of 4 months. We live in interesting times.

When the Bitcoin network was launched in January 2009, few people knew about it and fewer people believed it would ever be worth anything in the future. If someone said people would, in the future, spend huge chunks of their hard earned money to buy Bitcoin, he or she would be laughed out of the room in derision. 

But now, that's what's happening. Although the world hasn't wholly embraced the virtual currency, its number of enemies and critics is slowly reducing and more people are embracing it. Who wouldn't? What with its promise of being the next big thing and the way it has been hitting new all-time highs, it looks more appealing with time despite its volatility.

- Advertisement -
- Membership expired -

Bitcoin recently surpassed $11,000 and the feeling is that it will cross $12,000 before the end of the year as serious players are expected to enter the market.

Here come the hard forks

Bitcoin's journey to $10,000+ is not a rosy one, there were many rough twists and turns along the way. Due to disagreements on how to make Bitcoin a better virtual currency, it has gone through several hard forks.  We had the Bitcoin Cash hard fork on August 1st with the Bitcoin Gold hard fork coming in October.

If you think we're done with the ridiculous Bitcoin names, the reality is much different. A new hard fork, Bitcoin Diamond, is already upon us, providing another airdrop dividend for Bitcoin investors. 

And after Bitcoin Gold and Bitcoin Diamond, there remain enough precious metals to use for new fork names. It's all a little bit immature, but if people are making money from it, no one will complain too much. 

- Advertisement -
- Membership expired -

 

What is Bitcoin Diamond? 

The first and most noticeable thing about Bitcoin Diamond is that its arrival is very quiet.The official website didn't say much about the launch except that it was created at block height 495,866 on the Bitcoin blockchain network (which was mined on November 25th). Furthermore, its birth and its features raise more questions than answers. 

This is because Bitcoin Diamond has very little in common with Bitcoin, unlike Bitcoin Cash and Bitcoin Gold. And this is raising many red flags about the coin. 

Coin galore: 1 Bitcoin, 10 Bitcoin Diamonds

Instead of the customary 1 Bitcoin for every new hard fork coin, Bitcoin owners will be getting 10 Bitcoin Diamonds for each Bitcoin they hold after the fork. This is very strange. 

In addition to this, the developers say they plan to switch from Proof-of-work to Proof-of-stake after mining 10,000 blocks. This means Bitcoin Diamond holders will have a chance to gain interest on their coins for simply hodling it. 

That's not all. There will also be 210 million BTD in circulation eventually, which is ten times the number of Bitcoins that will be in circulation after all the coins have been mined. Diamond galore diamonds are for ever. 

Apart from these, BTD, says it wants to offer more privacy to its users. Everything about it will be encrypted- wallet addresses, transactions, amount transacted and so on. It promises to have replay protection implemented and claims its 8MB blocks will have Segwit installed.  

- Advertisement -
- Membership expired -

 

Red flags, warning signs

Bitcoin Diamond isn't here yet. Although the fork has happened (without much fanfare and publicity), BTD is yet to be launched. There's no word as to when it will be officially launched and no one is sure how to claim it. The developers aren't saying much about the hard fork and everything is hush. For all we know, it might not be a real hard fork.

Although there are no Bitcoin Diamonds on the market yet, a number of relatively unknown exchanges (28 in total) are listed on the website, touted to support it. BTD futures markets are also open on these exchanges and the coin is worth about $80 at the moment. It's hard to put a finger on the purpose of these exchanges.

The authenticity of these exchanges and wallets listed on the BTD site are unknown. They (and BTD itself) may be malicious widgets designed to steal Bitcoins in one way or the other. But that doesn't mean they are malicious. No one knows, so let's be careful. 

And finally, BTD doesn't seem to have a Github, or a public code otherwise released. There is very little known about it so, it is wise to totally ignore it or at best approach it with extreme caution.