I know what you’re thinking. Another fork? Now? Can it be?
Learn how to buy Bitcoin and Ethereum safely with our simple guide!
The answer is yes. Bitcoin Diamond is the result of a collaboration between two Bitcoin mining teams, Team EVEY and Team 007, who joined to form the aptly named Bitcoin Diamond Foundation.
Like Bitcoin Cash, Bitcoin Diamond decided to tackle Bitcoin’s scalability issues by raising the block size to 8mb. According to Bitcoin Diamond’s website, “the speed of generating blocks will be increased five times and the ultimate goal is to improve transaction confirmation speed for the entire BTC blockchain”.
Bitcoin Diamond will utilize a new proof-of-work algorithm that is reportedly more efficient. Additionally, Bitcoin Diamond claims to be more anonymous than the original Bitcoin. Unlike Bitcoin, transactional amounts and BCD balances on the Bitcoin Diamond network are encrypted.
As with previous coins that formed as a result of Bitcoin forks, Bitcoin Diamond tokens will be distributed on a 10 BCD-to-1 BTC ratio to Bitcoin holders. The Bitcoin Diamond website (btcd[dot]io) claims that more than twenty exchanges will support the coin after its birth. The website also lists five wallets that will be compatible with BCD, including Ledger.
Big Talk, but Something’s a Little Strange…
There are a few things about this particular fork that seem a little less than legitimate. For one thing, the actual identities of any of the members of Bitcoin Diamond’s development or operational teams have not been made public.
While this may not seem like an issue outright, a lack of names and faces is often an indication of shady operations in the world of cryptocurrency. Additionally, there is no whitepaper or any other technical information to back up any of the technological claims that BCD is making.
The cryptocoin may very well have been conceptualized without any malicious intent, but it’s not entirely impossible that the fork was created for the purposes of developing a currency that could easily be subjected to price manipulation.
Here’s how it could work: because everyone who holds Bitcoin will receive an equivalent amount of BCD after the fork, the coin’s value will be pumped artificially high in the immediate period following its release (as was the case with Bitcoin Cash and Bitcoin Gold.)