Bitcoin Diamond cryptocurrency: scam or promising fork?

Bitcoin Diamond is a fork of the Bitcoin network that occurred at block 495866 in November 2022, after which a new chain was created.

Bitcoin Diamond is a decentralized P2P network.

Bitcoin owners were awarded coins in a ratio of 1:10. Since the maximum number of coins is 210,000,000, some of them went to Bitcoin holders, some (approximately 40 million) were sent to the pool, and the rest was used to develop the ecosystem and pay employees.

The project will be constantly developed and improved based on existing Bitcoin data.

Problems that BCD solves:

1. Very slow transactions.

2. Entry is too expensive for new participants in the cryptocurrency market.

3. High commissions

A frequently asked question is: is Bitcoin Diamond a competitor to Bitcoin? The developers write the following about this:

No! This cryptocurrency has taken the best from it and strives to introduce new, modern technologies in order to improve the entire ecosystem. To carry out instant transactions, a new technology was used - the Lightning Network, which allows Bitcoin Diamond to be very convenient in making everyday payments. The block size has also been increased to 8 MB and the blocking speed of each block has been increased.

It is also worth noting that BCD supports the BIP44 standard. With this standard, the user needs to store their private key and use the seed value (secret phrase) in order to generate a set of associated addresses.

An interesting fact about Bitcoin Diamond is that they have a store called “BCD bazaar” https://www.bcdbazaar.com where you can buy real things with BCD coins.

For example, at the time of writing, December 2022, you can buy an Apple IPhone 8 Plus for only 712 BCD, which is equal to 35,906 rubles at this rate.

On average in Russia, this model can be purchased from 30 to 46 thousand rubles.

Plus, this product will have free shipping to any part of the world!

Also on this resource you can purchase goods such as: game consoles, kitchen appliances, computer equipment and other trinkets.

Bitcoin Diamond did not participate in ICOs and does not support any ICOs, since the developers are confident that most of these projects are deception and fraud. Therefore, Bitcoin Diamond is a 100% self-funding project. Most of the funds were received thanks to a premine of 10%.

The developers posted a small report that talks about the 2% spent:

1. Mainnet and wallet development
2. Mining pool development
3. Spending on meetings and conferences
4. Social media promotion
5. Domain and hosting
6. Developer Awards
7. Security system maintenance costs
8. Salary for full-time staff

Another ~4% will be spent over several years:

• Lightning Network
• Network updates

Advantages

1. Better than a bank card - lowest fees than any bank transfer.
2. Better than cash - you can purchase a coin and send it anywhere in the world and pay the seller with it.
3. Instant transactions
4. Low commissions
5. Limited coins

About the coin

Bitcoin Diamond (BCD) is a fork of Bitcoin that occurred at block 495866, resulting in the generation of a new chain called BCD. Bitcoin Diamond miners began creating blocks with the new proof-of-work algorithm and consistently developing and improving transaction speeds, taking advantage of all the advantages of Bitcoin. This will cause a bifurcation of the Bitcoin blockchain. The original Bitcoin blockchain will remain unchanged, but a new branch of the blockchain will be separated from the original chain. It has the same transaction history with Bitcoin until it forks and enters a unique block.

The capitalization volume is 96,447,540 US dollars.

conclusions

Bitcoin forks, in theory, have a good purpose. They are created because the development team does not like to accept the shortcomings of the underlying crypt. Some are successful, but there are also not very promising initiatives. Bitcoin Diamond is one such not very successful example.

Attention should be paid to the comments of major players in the crypto market. For example, at the end of 2022, Ledger (a company that produces crypto hardware wallets) announced that Bitcoin Diamond was involved in fraudulent schemes. Clients go to sites related to cryptocurrencies, where they are asked to enter a passphrase and then simply steal BTC tokens.

There is a theory that the BCD developers themselves are doing this. There is practically no information about this fork, no technical details, not even information about the developers. All that is suggested is to believe the promises on the official website.

Given this, it is difficult to recommend Bitcoin Diamond as an investment. It's better to ignore this fork altogether.

What problems does Bitcoin Diamond need to solve?

After nine years of rapid development of Bitcoin, Bitcoin's high transaction fees and features themselves no longer meet the needs of a growing number of customers.

This has led to a number of problems, which mainly consist of the following aspects:

1. Slow transaction confirmation.

2. High entry threshold for new users.

Since Bitcoin Diamond is a fork of the Bitcoin blockchain with updated technology that retains the original characteristics of Bitcoin, new methods have been added - the Lightning network for faster transaction speeds, which has proven effective in daily payments.

The Lightning Network itself is a second-layer payment protocol running on the blockchain. This protocol is designed to enable real-time transactions between two parties. The main idea of ​​the Lightning Network is to host a large number of transactions off-chain. The Lightning Network improves off-chain transaction channels using smart contracts. Throughout the transaction, smart contracts play an important role as an intermediary, and the blockchain provides confirmation of the final results of the transaction.

How is it different from other forks of the Bitcoin network?

The conversion rate of BTC to BCD, like other forks, does not exceed 1 to 20, but forecasts indicate that in the future it may begin to grow significantly. On the CoinMarketCap website, the growth graph is only going up, which makes future investors happy. Some are already recklessly saying that it solves all the problems of the original Bitcoin.

Various bloggers who call themselves explorer bitcoin say that it primarily solves the speed problem. Nowadays, the amount of cryptocurrency is very limited, and the network is practically not expanding at all. Developers are trying to solve this problem by actively reworking the entire mining system.

This cannot be verified, since the developers do not have a GitHub account or source code files. Rumor has it that it was written in io.

Benefits of Bitcoin Diamond

According to the developers of the coin, the main advantages of the coin are that it:

" Better than a credit card "

Featuring low service fees, better exchange rates than government currencies, and faster transaction confirmation times than other electronic payment options

" BETTER THAN CASH "

Since it can be used in any country to purchase any product and arrange delivery anywhere in the world. The transaction costs less than a penny and no additional currency exchange is needed.

" BETTER THAN FIAT "

Because traditional government currencies are more at risk of inflation and depreciation. Unlike fiat currency, Bitcoin Diamond has a limited emission, which allows it to control inflation.

Additional benefits of the currency include increasing the storage size and blocking speed of each block to an optimal value to follow segwit and increase the use of Bitcoin Diamond block storage and minimize the production of isolated blocks.

The structure of the cryptocurrency prevents replay attacks: i.e. if the transaction in BTC is valid, the BTC bifurcation comes into force when most of the algorithms of both cryptocurrencies are the same. Those. if someone on BTC initiates a trade on the chain and sends the signed trade to another blockchain, they will receive free BTC that has the same ratio on that blockchain. To prevent a repeat attack, a small change was made to the trading format between BTC and BCD. While to prevent re-trading, BCD will not accept a BTC trade, making it truly independent from BTC.

ICO project

The Bitcoin Diamond project did not conduct an ICO procedure. Moreover, developers do not support crowdsales because they believe that most of them are deception and fraud. Bitcoin Diamond is a 100% self-funded project. Part of the funds was received thanks to the premium - 10%. The developers reported on the funds spent:

• 2% of the funds went to domain and hosting, advertising and promotion, wallet development and mining pool, developer salaries and security system maintenance.
• The remaining funds will be spent on developing and optimizing the network over several years.

How to get cryptocurrency

1. Anyone who owned Bitcoin at the time of the creation of Bitcoin Diamond on November 24, 2017 at block level 495866 became the owner of Bitcoin Diamond, in the ratio of 1BTC: 10BCD.

2. Mining

3. Exchange on any other secondary markets.

4. BCD green construction participants will receive a certain BCD reward.

Bitcoin Diamond can be stored on any secure storage until the specified level of 495866 is reached. When storing bitcoins on exchange wallets, you must check with them about the conditions for receiving Bitcoin Diamond. Verified wallets that support BTC and BCD will be listed on the Bitcoin Diamond home page. Instructions for withdrawing BCD from the most popular wallets will also be provided.

Those. If users have BTC in a web wallet, hardware wallet, multi-signature address, or any other form of secure private key storage, they will request the corresponding BCD according to the equivalent of the Bitcoins they hold at any time.

Exchange rate chart, price dynamics, capitalization

BCD tokens were awarded to all holders of the original Bitcoin in a ratio of 1:10. It turns out that users who had 10 Bitcoins in their account received 1 BCD.

The total number of tokens is 210 million, 170 million were issued immediately and distributed among digital gold holders.

Almost immediately after the launch of the fork, the coin rate reached $100. Today BCD is trading at $1.22. The absolute maximum was recorded on January 13, 2022, when the value of the digital asset reached $147. Then the situation developed in a standard way: following the decline in the cryptocurrency market, Bitcoin and its forks began to lose ground. The BCD rate fell almost 40 times.

According to CoinMarketCap, as of June 5, 2019, the capitalization of Bitcoin Diamond is $228,856,422, the daily trading volume is $13,063,335. The project is in 42nd place in the ranking.

Earning Opportunities for Developers

The BCD App service provides an opportunity for developers to earn money from their professional skills. Using this section of the official cryptocurrency website, developers can create, update, host and put up for sale the applications they create and receive a reward for it in BCD. More details in the official section.

general information

Exchanges and latest updates

The main exchanges where you can buy Bitcoin Diamond include the following: Bithumb, Binance, Okex, Huobi, Kukoin, Investing.com.

The latest cryptocurrency updates, according to information from the official Twitter account, include the following: the introduction of the LWMA algorithm, which, according to the developers, should secure the cryptocurrency network and protect users.

In addition, the crypto exchanger SwapSpace announced the publication of a training video on how to exchange Bitcoin Diamond using the project’s resources.

The most recent update concerns the launch of a trading pool on Wrapped BitcoinDiamond and ETH on @UniswapProtocol. All users of this update are provided with bonuses of 0.3% on each trade when adding liquidity.

Where can I buy BCD?

The Bitcoin Diamond cryptocurrency has found support from large trading platforms. You can buy BCD on the following exchanges: Binance, Bit-Z, Gate.io, Huobi, Lbank, OKEx and many others. Moreover, in most cases, BCD is traded in pairs with other cryptocurrencies – most often with BTC and ETH. You can buy coins for USD or USDT only on Exrates, CoinBene, Gate.io and OKEx.

Mining

The changes also affected mining. In particular, the developers decided to abandon the]SHA-256[/anchor] algorithm, which is indeed considered obsolete. The choice fell on the X13 algorithm, its essence lies in a 13-round check.

It should be noted that the main disadvantage of SHA-256 is mining on ASIC devices, which threaten the decentralization of the network, since there is a risk that the currency will be concentrated in the hands of several pools. The X13 algorithm is more resistant to such hardware devices.

You can also mine BCD coins at home; for this you will need a video card with the appropriate power level.