Bitcoin Diamond cryptocurrency guide advises where to buy and how to buy Bitcoin Diamond. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Bitcoin Diamond as well its status in the world of cryptocurrencies.
Bitcoin Diamond, Sunday, 2021-04-11
- 1 What Is Bitcoin Diamond?
- 2 Beginner's Guide to Bitcoin Diamond
- 3 Where and How to Buy Bitcoin Diamond?
- 4 Bitcoin Diamond Markets
- 5 Where to Spend or Use Bitcoin Diamond?
- 6 How Does Bitcoin Diamond Work?
- 7 Bitcoin Diamond Regulation
- 8 Is Bitcoin Diamond Secure?
- 9 History of Bitcoin Diamond
- 10 Bitcoin Diamond Videos and Tutorials
- 11 See Also
What Is Bitcoin Diamond?
Bitcoin Diamond is one of the latest cryptocurrencies in the market created through a hard fork of the original Bitcoin. The fork occurred at the height of block 495,866. This means that every person who had Bitcoins before the mentioned block will get some Bitcoin Diamond.
The year 2017 has come to be named the year of Bitcoin hard forks. First, it was Bitcoin Cash. It was followed by Bitcoin Gold, and now this is Bitcoin Diamond. Even the Bitcoin Community appeared undecided about the hard fork.
Bitcoin Diamond took place at the predetermined height of block 495,866 which means that a new chain was developed from the original Bitcoin Core. Note that unlike the Bitcoin Cash fork that created a total of 21 million coins (the same quantity with that of Bitcoin), Bitcoin Diamond has 210 million coins.
Many people have been fast to ask what happens to the original holders of the Bitcoin. The hard fork means that the original Bitcoin will continue in its normal operational design while BCD will form a branch. Both blockchains will share the same history until block 495,866 when they part ways.
Why the hard fork? What does Bitcoin Diamond bring that Bitcoin did not have?
When Bitcoin was created, the main aim of Satoshi Nakamoto was to form a completely decentralized cryptocurrency. It also promised to make transactions private, fast, cheaper, and reliable. While there is no doubt that Bitcoin was not designed to be a perfect crypto, newer options that are emerging today are hinged on addressing issues related to shortcomings of Bitcoin.
The process of mining Bitcoin has become so much centralized with the companies that manufacture specialized ASIC mining equipment controlling the mining process. Now, Bitcoin Diamond claims to target restoring mining to the ordinary people by making sure that they can also mine the network using standard GPU (Graphics Processing Unit) devices.
The timing of the fork, its implementation, and the general mood of the cryptocurrency industry split the Bitcoin community into two. Well, though the community agreed that Bitcoin was indeed falling short in many ways, they differed on the need for a fork.
But wait for a moment. This is exactly why a hard fork had to be implemented. If people cannot agree, they part ways. Even during the forks that created the high flying Bitcoin Cash, a lot of people and even corporate entities did not agree to it. The main question is; will the Bitcoin Diamond become a high flying crypto just like the BCH? Only time will tell. Here is a closer look at the Bitcoin Diamond, the cryptocurrency that is promising to unseat BTC.
Beginner's Guide to Bitcoin Diamond
The cryptocurrency niche is growing rather fast. While some developers are focused on crafting completely new cryptos, others are interested in redesigning and redefining the existing networks. Bitcoin Diamond was created as a hard fork of the Bitcoin core. The fork came on the heels of other forks such as Bitcoin Cash and Bitcoin Gold. This made the bulk of the crypto community to look down upon Bitcoin Diamond.
Many people were questioning whether the immediate forks (Bitcoin Gold and Bitcoin Cash) had achieved their goals. Indeed, even some cryptocurrency exchanges such as Bittrex and Bitfinex refused to list BCD because it was considered too risky. The founders, Team Avery and Team 007, indicated that theirs was a noble idea and they only wanted to grow the cryptocurrency industry.
Now, the main question has been whether the argument that Bitcoin Diamond will outdo Bitcoin is valid? To join the Bitcoin Diamond network, you need to look at its structure and gauge it against others in the market. This is why this guide was created.
The Bitcoin Diamond guide is a comprehensive look at the cryptocurrency to determine what it is, where to buy, wallets, value, and markets. It also explores other topics such as regulation, taxes, security, and anonymity. The guide closes by exploring why a lot of people are developing trust in the crypto and its history.
No matter the question you have about Bitcoin Diamond, the answers are in this guide. Welcome to learn more about this unique cryptocurrency.
Where and How to Buy Bitcoin Diamond?
When BCD was forked at the height of block 495,866, a lot of skeptics were quick to dismiss it. Top cryptocurrency exchanges such as Bittrex and Bifinex refused to touch the new fork claiming that it was too risky. Even with these teething problems, the value of Bitcoin Diamond continued to perform well and made even those who had thought it was a joke start having some second thoughts. By the close of November 2017, the value had jumped to more than $70.
Riding on the train of the well established original Bitcoin, the airdropped BCD coins meant that distribution was not going to be a problem. It was a genius idea instead of crafting a completely new code. Now, everybody appears in agreement that BCD is the next thing that will move the market. You cannot be left behind in getting this great token that is promising to replace Bitcoin. Here is where and how to buy BCD.
Start by acquiring an appropriate Bitcoin Diamond wallet. This is the most important thing because it is the location that will hold the coins after the purchase is completed.
- Buy from a cryptocurrency exchange that lists BCD. You can also buy a different cryptocurrency such as Bitcoin and exchange it for BCD. Some top cryptocurrency exchanges to consider include Binance, CEX.io, and KuCoin.
- Note that you will be required to open a trading account on the preferred exchange to buy BCD. Depending on the exchange of choice, you will also be required to confirm the trading account using personal details.
- Buy BCD from those who already have them. Since 2009 when cryptocurrencies debuted, the long journey has never stopped. Now cryptocurrency clubs have become the ultimate places for people to learn about everything crypto. But that is not all. The clubs are also great places for the people with cryptocurrency coins such as BTC, BCD, Ether, and others to meet and sell to those who want them. One such club is the LocalBitcoins.com.
- The unique thing about cryptocurrency clubs is that they operate without the restrictions imposed by the trading exchanges. Once you meet with the prospective seller, it's upon both of you to agree on price and method of payment. You can agree to pay in cash, other cryptos, credit card, or even physical properties such as cars and houses.
- Purchase BCD from cryptocurrency brokerages. Brokerages are designed to operate like standard cryptocurrency exchanges in many respects. However, the price of BCD and other tokens costs more because they are adjusted upwards to cater for broker’s profits. Some great examples to consider when buying BCD include Coinmama and Bitpanda.
Bitcoin Diamond Wallet
If you are planning to join a cryptocurrency network, one must have thing is a cryptocurrency wallet. This is a digital location that holds your tokens when operating in the market. Before taking a look at the top cryptocurrency wallets for BCD, it is important to demystify the term cryptocurrency wallet.
The accepted definition of a cryptocurrency wallet is a digital location that holds the users crypto assets. However, this definition is indeed a misconception. In reality, the crypto assets such as BCD are never minted or printed. They only exist as digital strains, and they never leave the native networks. This implies that the crypto coins cannot be stored anywhere else apart from the native networks. This brings about the main question; what exactly do the wallets store?
The wallets are designed to store three types of codes. One, they store the private keys. This is a unique code that points at the user’s coins in the Bitcoin Diamond network. It is the code that calls your coins to live so that you can make transactions on the Bitcoin Diamond network. As the name suggests, the private keys are private and should never be shared. When you give a third party the keys, it means that you have handed the tokens.
The second code stored in the wallet is the public keys. This is a code that points at the wallet. The code is used by the people who want to send BCD to you. This means that you can share the public keys in the Bitcoin Diamond without worrying of getting attacked. Indeed, the public keys are used by miners to confirm transactions when users spread in the network are sending value.
The last code stored in a cryptocurrency wallet is the private seed phrase. This is a special code that is used to regenerate private keys in the case of a loss. The most important thing when using a cryptocurrency wallet is ensuring you keep a backup and store the codes safely and away from the main computer.
Top four cryptocurrency wallets used by Bitcoin Diamond
- QoinPro (mobile wallet)
- This is one of the new cryptocurrency wallets employing a unique strategy of encouraging cryptocurrency community to join; giving away free cryptocurrencies to those who join or refer others. It is the same model that was used by PayPal when it entered the market. Every new entrant was given a bonus of $10. Now, QoinPro is offering tokens to every user who joins it.
- The wallet is a relatively simplistic app that has a very interesting feature, of free daily cryptocurrency. It is limited to Android mobile platforms and allows users to store multiple crypto assets such as BCD, TFC, BTC, and LTC among others.
- The wallet provides daily cryptocurrency market updates and news on ICOs, blockchain technology development, and shifts in exchange rates at different trading platforms. In addition, the wallet provides trading opportunities, especially on the emerging cryptocurrencies.
- When you sign-up for the QoinPro wallet, the user is provided with a referral link that allows him to suggest the app to friends. Once you refer new friends to join and use the wallet, your referral bonus is multiplied by a range between 5% and 1250%.
- Bitgo (web-based wallet)
- Bitgo is a web-based wallet designed to provide users with a secure, reliable, and fast processing capacity when making transactions. The main challenge of using cryptocurrencies is that they follow a chain of events for value to be sent from one point to another. In a typical transaction, miners take over transaction by solving complex algorithms, add new blocks, and resort to voting if a conflict arises. This can take minutes or even hours.
- Bitgo is an instant type of digital wallet which means that you are allowed to send Bitcoin Diamond with zero-confirmations. It is like accepting a cheque without confirming there are ample funds in the issuer’s account. Sounds risky! Bitgo does this by operating its own security checks and running multiple security keys before completing transactions.
- The wallet vouches for transactions until they are confirmed. This means that users no longer need to worry about lag between accepting payments and receiving value.
- The biggest downside of the wallet is that users require starting by learning how it works to apply it effectively. Besides, it is a web-based wallet which means that you are an easier target by hackers compared to other wallets such as the highly placed ledger.
- Ledger Nano S (hardware wallet)
- Ledger Nano S is one of the leading cryptocurrency wallets out there. Many cryptocurrency token holders and traders prefer it because of its unique security features. Many people often refer it as the most secure option out there.
- The wallet is designed by a French company, Ledger, that targets to enhance personal control on crypto assets. The wallet allows Bitcoin Diamond holders to receive, store and make transactions to other wallets and exchanges. When you first use the wallet, it generates the seed phrase, private keys and public keys. Ensure to store the codes safely, preferably in a separate location and away from the main computer. This is very important because the codes will be required when making transactions or recovering BCD in the case of a loss.
- The hardware is finger sized and requires you to plug into a computer or phone USB to make transactions. Its LCD on one side of the hardware makes it possible to follow the transactions all the time. The physical buttons on the side make it possible to make transactions more securely because they must be used to initiate transactions. This implies that even in the event that a hacker gains access to your account, it will be impossible to siphon the BCD without having the physical access to the wallet.
- One unique thing about the wallet is that all the transactions take place without the private keys leaving the hardware. So secure is the wallet that the manufacturer insists you can even run transactions using compromised computers. Even with this consideration, it is advisable to always keep your Bitcoin Diamond client, the computer protection antivirus, and every security detail up to date.
Where to Buy Bitcoin Diamond with Credit Card?
A credit card is a must-have for every smart shopper. So crucial are the cards that they have become an important evaluation component when organizations such as credit reference bureaus look at when calculating credit scores. Because of their acceptability in both conventional and online market places, credit cards are the perfect payment method in most stores. Now, you can also pay for the Bitcoin Diamond with credit cards.
Note that not all exchanges that list Bitcoin Diamond accept credit cards. Therefore, to trade BCD in a platform such as Binance, you will need to start from another platform that accepts credit cards. Here is a list of places where you can use credit cards.
Where to Buy Bitcoin Diamond with PayPal?
If you fancy making online purchases, one of the top payment methods is PayPal. Most people prefer it because it is prompt and very easy to use. However, PayPal has been dragging its feet to facilitate payment to cryptocurrency networks such as Bitcoin and Bitcoin Diamond. Though it has indicated that such payments will be effected in the coming months, it appears that users are left with no option but to go through the longer methods of purchasing BCD from PayPal.
The following platforms facilitate payment of BCD using third parties or completing the transactions without necessarily indicating leaving threads that you actually made payment to cryptocurrency networks. This is the reason that the charges can at times be as high as 9% of the traded volumes.
- VirWox: Note that VirWox does not operate like a fully blown cryptocurrency exchange. Rather, it serves the Second Life game as a way of buying in-game collectibles. Because the game is big enough, VirWox accepts PayPal creating a gray area that allows users (call them in-gamers) to make purchases for Bitcoins. Once you have the Bitcoins, exchange them for BCD at appropriate exchanges.
- Paxful: This is a special service that allows users to form accounts, get sellers, and exchange funds in their PayPal accounts for BTC. The unique thing about Paxful is that it employs Escrow services to guarantee users of extra security. Though Paxful is a great service, it is yet to gain global acceptance.
- LocalBitcoins.com: This is a cryptocurrency based club that helps users to interact and learn from each other. The club has also become a great place for the crypto community to buy crypto assets from those who have them. As a direct method of payment, you can agree with the buyer to make payment in PayPal, cash, wire transfer, or even physical assets such as a car.
How to Buy Bitcoin Diamond with Wire Transfer?
There is something special about banks. Even for the top advocates of cashless systems, none of them operates without a bank account. Banks are trusted because they are thorough in their work, review every transaction details, and are accepted in law. Apart from processing salaries for users, people also turn to them for loans and financial advice. Now they have another role; helping people buy cryptocurrency tokens such as Bitcoin Diamond. Here is an account of where and how to buy BCD with wire transfer.
- Start by acquiring a cryptocurrency wallet. This is very crucial because it is the home where the BCD will be housed after the purchase is completed. The wallet will also be the main platform to facilitate transactions such as sending value.
- Identify an appropriate cryptocurrency trading exchange and open a trading account. Some of the top options include KuCoin, Binance, and CEX.io. Note that you will be required to verify the trading account with additional personal details such as proof of location and telephone number (the requirement for verification can vary depending on the selected exchange).
- On the trading account that was created in step two, navigate to the section labeled buy digital assets. Here, you can select BCD if the cryptocurrency is listed there or select another top cryptocurrency.
- On the payment section, select pay with a wire transfer. This will immediately shift the transaction to a pending mode. The cryptocurrency exchange of choice will have to make a claim and change the transaction to be completed once the cash hits its account. This will take between two to four days depending on the location and the specific exchange.
- Once the transaction completes, the BCD or alternative crypto asset will be deposited to the trading account. You will, therefore, have to take another step of moving the tokens to your wallet.
Where to Sell and Trade Bitcoin Diamond?
When blockchain technologies were launched, one core target was to ensure they are tradable in the markets. The aim of the trading platforms is to ensure that any person with interest in cryptocurrencies can easily buy them to increase uptake and use. When Bitcoin Diamond was released, it looked feeble, and some platforms such as Bittrex and Bitfinex opted not to list it. However, this brought about a major problem. How would those with BTC in these no supporting exchanges recover their BCD?
As a fork of Bitcoin, it meant that all the Bitcoin holders to the height of block 495,866 have to get a piece of the new crypto coins. For every Bitcoin holder, ten Bitcoin diamonds were allocated. This means that even if these markets did not want to list BCD, Bitcoin owners still had to get a way of allowing their users recover them.
One thing that Bitcoin Diamond holders need to appreciate is that the trading platforms are the softest underbelly of the entire cryptocurrency industry. They present an important point of interaction between non-regulated cryptocurrency networks and regulated trading platforms. Besides, most of them are run by third parties which mean they are highly prone to attacks. The chances of getting attacked at the trading platforms are very high compared to other areas of crypto operations. This brings about another question; how do you identify the best selling and trading platform?
- Look for the platform that lists very many cryptocurrencies. This will give you endless opportunity to get profitable trading pairs.
- Only select the trading platform that has low transaction fees. This will allow you to keep the bulk of the profit made when trading different assets.
- Identify the trading platform that has a great reputation among the cryptocurrency community. If the community is very satisfied with the platform, you can also expect to get similar satisfying results.
- Pick the platform that allows traders to move their crypto assets to their wallets immediately. This reduces the danger of getting attacked at the highly prone crypto exchanges.
- To understand the market trading dynamics, the ideal trading platform should have advanced metrics. These will help you to follow the markets and only make moves when they are profitable.
- Where possible, consider selecting only the trading platform that insures or secures traders’ assets in cold storage. This helps to reduce the risk of loss in the event of an attack.
- The selected trading platform should have a good and easy to use user interface. This will help you to have issues addressed fast and comprehensively without wasting reliable trading opportunities. The best selling and trading platforms include Binance, CEX.io, KuCoin, and Coinegg.
How Much Are the Transaction Fees of Bitcoin Diamond?
One of the primary reasons for the fast growth of cryptocurrencies in the market today is the promise to lower the transaction fee. While Bitcoin Diamond is yet to make the actual transaction cost clear, it is lower than what Bitcoin charges. This is made possible through a bigger block size and implementation of Segregated Witness technology.
Bitcoin Diamond Markets
Cryptocurrencies such as Bitcoin Diamond are traded in the crypto markets. These can be considered replica of the standard forex markets. However, they differ remarkably because they deal with crypto assets such as crypto coins and tokens. The following are the top markets where you can follow and trade Bitcoin Diamond.
- This is one of the top cryptocurrency exchanges in the market. The market was created around mid-2017 by Changpeng Zhao to help address the challenges that users were facing trying to trade digital assets. Zhao was especially interested in ensuring that users can trade in utmost security and also pull down the operational costs. Between mid-2017 and early 2018, Binance grew rapidly and entered the top 30 cryptocurrency exchanges in the globe.
- To make trading easy and cheaper, Binance also introduced its native token referred as BNB (Binance Coin). This token has been instrumental in facilitating faster adoption by the cryptocurrency community. The standard transaction fee at Binance is 0.1%. However, you can pull the cost further down to 0.05% by making payment in BNB.
- Many traders also like the market because it lists very many trading assets. This implies that traders will always have endless options to trade profitably by jumping to the more preferable pairs. Other benefits of using the platform include its multi-signature support and mobile applications.
- CEX.io has gained popularity across the globe for its ease of use. The design of the cryptocurrency exchange was meant to help traders identify and take advantage of opportunities with ease. In addition to listing many cryptocurrencies, CEX.io is accepted in more than 99% of countries across the globe. This means you have the trading platform to follow the performance of BCD right from your home.
- The most notable thing about CEX.io is that it accepts payment in fiat currencies, credit cards, and cryptocurrencies. This makes it one of the most diverse platforms out there. It is particularly useful for traders who are interested in regular conversion of fiat to BCD for trading and withdrawing profits.
- To make trading easier, CEX.io provides users with advanced metrics to assist them to understand the market. The metrics allow users to articulately speculate and make the highest returns. For members who want to trade more, the platform also offers automated borrowing and margin trading.
- This is a Hong Kong-based cryptocurrency exchange that has become one of the favorite options for the crypto community. Unlike other cryptocurrency exchanges such as Bittrex that insist on listing the most stable assets, KuCoin focuses on listing the emerging assets. This is why KuCoin agreed to list Bitcoin Diamond immediately after the hard fork that created it while others such as Bittrex refused. This means that KuCoin was an important market for the early establishment of BCD.
- By listing the latest assets in the market, it means that KuCoin users can easily pick the latest opportunities in the market and take advantage of them before others can notice. For example, you will always get new ICOs on the platform so that you can take advantage of them and see your investment grow in the subsequent months.
- KuCoin lists a lot of crypto assets. This means that traders who want to optimize their profitability will never miss a profitable pair. Besides, it has a very small transaction fee of only 0.1%. This means that you can trade more and keep the bulk of the profits.
- Note that unlike CEX.io, KuCoin is a cryptocurrency only platform. This means that you are only allowed to use cryptocurrencies on the platform. For those who have cash in their banks or want to use credit cards, the platform is not ideal for them. Rather, they have to start from another exchange that accepts fiat and then move BCD to KuCoin.
- Like Binance, HitBTC was established to help enhance the reliability of trading cryptocurrencies in the market. The exchange brings traders a very large number of crypto assets so that they always have a profitable pair. Besides the cryptocurrency has a very low transaction fee of 0.1%. This allows traders to keep the largest part of the trading profits.
- The biggest challenge of using HitBTC is its hacking history. In 2015, hackers managed to break into the cryptocurrency and made away with thousands of crypto assets. Even with the exchange's effort to address the issue, the notion that it was hacked has been a repelling factor, especially to new crypto enthusiasts.
Value of Bitcoin Diamond
When Bitcoin Diamond was forked from the Bitcoin core, the community was sceptic about it. This scepticism was confirmed by the top cryptocurrency exchanges especially Bittrex and Bitfinex failing to list the cryptocurrency. Despite this, the cryptocurrency still entered the market and started trading at more than $70. The price grew within the first few days to hit an all-time high of $94 before taking a sustained downward trend.
By end of April 2018, Bitcoin Diamond market capitalization was about $700 million with each token going for $4.5. Though the price has dropped with a huge margin from late November of 2017, the cryptocurrency community is optimistic that the value will grow to higher levels in the coming months.
Is It Profitable to Invest in Bitcoin Diamond?
While the sharp drop in price from the peak of $94 in November 2017 to about $4.5 in end of April 2018 might be scaring, the Bitcoin Diamond is still one of the best options out there. The bad performance has been linked to bad publicity related to forking Bitcoin. Besides, most Bitcoin holders dumped the BCD awarded to them causing an oversupply and downward price shift. However, the truth is that Bitcoin Diamond is a separate network that is focusing on progressively improving users' experience. This is why more people are joining it to enjoy services that are not available on the original Bitcoin. For example, the price between 1st of April and 23rd of April 2018 shifted more than 100% from $2.15 to $4.50.
The speculation is rife that the coming days will see Bitcoin Diamond grow with the same pace experienced at Bitcoin. However, the profitability is dependent on a lot of factors including the looming regulations, security, and progressive features.
Where to Spend or Use Bitcoin Diamond?
To understand the acceptance of a cryptocurrency, one of the best methods is looking at the stores that allow buyers pay with it. On this front, Bitcoin Diamond is lagging behind. Though the cryptocurrency is relatively new and still working its way through the fast-evolving crypto industry, there is no doubt that a lot needs to be done to enhance its acceptability. The cryptocurrency development team should work on building partnerships with other payment networks and merchants. Note that you can still buy with Bitcoin Diamond by converting to the accepted cryptocurrency.
Can Bitcoin Diamond Grow to Become a Major Payment Network?
Yes, Bitcoin Diamond can grow to become a major payment network. As a cryptocurrency network, this is the primary goal. However, it is not an easy task because of the stiff competition from other more established cryptocurrencies such as Ethereum and Bitcoin Cash. Despite the huge challenge, here are some things that can catapult Bitcoin Diamond into a major payment network.
- The transaction fee is very small.
- Transactions are completed faster than those at Bitcoin and other networks.
- Bitcoin Diamond has a huge room for growth. It is a young crypto that is attracting investors especially from the networks that appear to be approaching their climax.
- The community around Bitcoin Diamond is growing rapidly.
How Does Bitcoin Diamond Work?
Bitcoin Diamond is a decentralized cryptocurrency that aims at providing users with a peer2peer platform for sending value. The cryptocurrency was created as a fork of Bitcoin Core. This means that it shares a lot of functionalities with Bitcoin.
The cryptocurrency employs Proof-of-Work algorithm which means that nodes/users/ miners spread in the network have to work to confirm transactions for a reward. They are also responsible for maintaining the network.
When the cryptocurrency was created, a total of 210 million BCD were created. The main focus of creating Bitcoin Diamond was to address three primary things;
- Poor privacy protection.
- High threshold required for new members.
- Slow transaction speed.
The development team released a total of 170 BCD to the public while the remaining 40 million will be used to reward the community through mining. Notably, the development team was quick to insist that the network is a not competitor to Bitcoin but only making an effort to help advance cryptocurrency adoption and use in the community.
Does Bitcoin Diamond Use Blockchain Technology?
Yes, Bitcoin Diamond uses blockchain technology. After the hard fork on block 495,866, a new blockchain branch was created. This will work just like the main Bitcoin blockchain but with major adjustments. The cryptocurrency employs Proof-of-Work algorithm that strongly relies on miners to confirm transactions, add them to the public ledger, and release new cryptos to the network.
When a user initiates a transaction, Bitcoin Diamond network picks it up and generates a complex mathematical problem. The difficulty of the mathematical problem is adjusted every two weeks. Then, miners have to work towards getting the answers to the mathematical problem. The first miner to get it right gets the chance to add the transaction details to the public ledger and is rewarded in BCD.
Mining Bitcoin Diamond
Mining at the Bitcoin Diamond network involves solving complex mathematical puzzles in order to confirm transactions for a reward. The Bitcoin Diamond network relies on miners to confirm transactions and build consensus on contentious issues. This means that miners are part of the network decision-making network that defines the direction that the network takes in most of the issues.
To mine the Bitcoin Diamond network, you will need to download and install the Bitcoin Diamond core client. This involves downloading the entire blockchain and installing it in your computer to become a node. Then, you will require an appropriate miner to start confirming transactions.
Note that unlike the original Bitcoin that requires miners to invest in advanced and expensive ASIC mining equipment, Bitcoin Diamond uses X13 mining algorithm which means that you can use even the standard computer GPU.
To raise the chances of confirming more transactions, you should consider joining BCD mining clubs. These are groups of people who come together to consolidate the hashing power and raise the chances of confirming more transactions. Note that the coins mined using pools are shared among the members based on the mining power each contributed.
What Are the Advantages of Bitcoin Diamond?
The primary goal of many people joining cryptocurrency networks is enjoying the advantages of decentralized networks. The simple notion that Bitcoin Diamond is connected to original Bitcoin has left many people thinking that its growth projectile will be similar. Well, only time will determine this. The following are the main advantages of joining and using Bitcoin Diamond.
- Bitcoin Diamond has helped to decentralize mining
- One of the main problems that have characterized Bitcoin is centralization of mining. While the initial idea of decentralization is hinged on mining, the ever-growing demand for more hashing power requires users to acquire high-performance ASIC mining equipment. This places the ability to mine Bitcoin in the hands of ASIC equipment manufacturers. However, Bitcoin Diamond is ending this trend.
- To mine Bitcoin Diamond, all that you need are standard graphic cards and installing them on your computer or laptop. This means that even people without a lot of money to invest in ASIC chips can also mine the Bitcoin Diamond network. This mode of operation has earned BCD a lot of trust across the globe.
- It offers a cheaper method of sending funds across the globe
- One of the key reasons why people are preferring cryptocurrencies to standard fiat currencies is the cost of transactions. Like other crypto networks, Bitcoin Diamond operates on a peer to peer basis. This means that both the sender and receiver are on the same network. By bypassing the centralized organizations such as banks, Bitcoin Diamond users are able to cut all associated profits.
- Notably, Bitcoin Diamond is still cheaper to use than most other cryptocurrencies. Because its value is still low, the cost of sending value is equally low compared to other high-value cryptocurrencies such as Ethereum, Bitcoin Cash, and Bitcoin.
- BCD tokens present a great method of investing without worrying about third-party seizures
- Do you keep all your savings in a bank account? Well, you need to know that they are at a great risk of getting frozen. A case can easily haul itself from anywhere and get you right at the doorsteps. That is right. You do not even have to commit a crime to be dragged to courts.
- A court battle can arise from the social media, on the road, and even at work. When such cases drag you to the courts, the first request that attorneys will make is that your accounts are frozen. With the strike of a pen, your savings will be locked until the case is heard and determined. But you can avoid this by directing some or all your funds to Bitcoin Diamond.
- As an anonymous network, it means that no one knows about you and your investments. Besides, the cryptocurrency space is unregulated and, therefore, no one can order for the details of your account, know about the savings, or even freeze them.
- Bitcoin Diamond is closely associated with the original Bitcoin
- The moment people hear the term cryptocurrencies, what ticks in their minds is Bitcoin. The meteoritic growth of Bitcoin, especially from 2016 to early 2018, is enviable. Now, everything that is associated with Bitcoin is winning a lot of trust. The same thing that happened to Bitcoin Cash is expected to replicate in Bitcoin Diamond.
- The value and community of Bitcoin Diamond have been growing rapidly
- While Bitcoin Diamond fork aroused a lot of mixed reactions, the community has come to appreciate that it is another force to reckon with in the cryptocurrency world. By marketing itself as a better cryptocurrency compared to Bitcoin and even other cryptos in the market today, a lot of people are opting to join. For example, the value is far higher than other cryptos such as Verge.
What Are the Risks of Bitcoin Diamond?
Just like Bitcoin Diamond has numerous advantages, it is important to appreciate that it also comes with myriads of demerits. Before you make the decision to join the Bitcoin Diamond network, it is advisable to compare the advantages and disadvantages. Here are the main risks you should anticipate before joining the Bitcoin Diamond.
- The cryptocurrency is very new
- By the first quarter of 2018, Bitcoin Diamond was only a few months old. This implies that most of the features were still in their infancy or getting tested to ascertain their stability. It is, therefore, too early to conclude that Bitcoin Diamond is among the best cryptos even if its value grows exponentially. The cryptocurrency will require more than five years to ascertain its stability.
- The threat of getting attacked and losing tokens
- It has become a common thing to hear people say that their crypto tokens were lost. On 5th of April 2018, Verge cryptocurrency was hacked and millions of dollars worth of native coins lost. Like Verge, Bitcoin Diamond users are also at great risk of getting attacked and losing their tokens. While you can be attacked at any level of operations in the Bitcoin Diamond network, the riskiest part is at the exchanges. Because these platforms are run by third parties and follow local rules, they are the easiest points for attackers.
- The danger of more advanced cryptocurrencies entering the market
- One of the main reasons for forking Bitcoin Diamond from the original Bitcoin was to address the identified flaws. This implies that Bitcoin Diamond is better than Bitcoin and users are expected to jump to the new and better option. In the coming days, Bitcoin Diamond is also likely to experience the same competition as newer cryptocurrencies that are better and more appealing enter the market. A good example of this is Bitcoin Private which has shown strong movement in the market capitalization and value for such a young currency.
- The risk of sending the BCD to the wrong address
- Like other cryptocurrencies, Bitcoin Diamond users are required to use public addresses when sending funds. However, the public keys are lengthy codes that are difficult to remember. This increases the danger of sending the tokens to the wrong address. Remember that all transactions are irreversible after getting confirmed and added to the Bitcoin Diamond public ledger. To lower the risk of sending coins to the wrong address, it is important to triple check the public keys for assurance that the tokens will go to the right person.
- The looming regulations
- Since 2009 when Satoshi Nakamoto launched the first blockchain network, most governments have indicated that the cryptocurrencies are serious threats. To address the issue, they have committed to passing very harsh regulations that will help to reduce the current fast growth of crypto networks such as Bitcoin Diamond. If the countries pass such harsh regulations, there is a serious risk of BTC value, community, and success taking a negative shift.
- Bitcoin Diamond does not have consumer protection
- The primary target of forming BCD was to enhance anonymity, scalability, and decentralizing mining. To achieve these targets, Bitcoin Diamond is run by consensus. This implies that there is no consumer protection in the BCD network. If you have an issue, it means that you do not have anywhere to run to. Remember that you cannot even seek redress from the courts because cryptocurrencies are not regulated.
What Happens if Bitcoin Diamond Gets Lost?
Once you have acquired some BCD, there is a special sense of accomplishment that everyone wants to protect at any cost. Think of it this way. When Bitcoin first hit the market in 2009, its value was less than one dollar. About nine years down the line, by the close of 2017, the value of one BTC had grown by more than 1,500,000%. This means a person who invested 1000 USD when BTC was still very young enjoyed over 15,000 times growth for around $15,000,000 (15 million USD). It is similar anticipation that makes BCD holders to also protect their coins with zeal.
Despite this commitment to protect the coins, reports of people losing their tokens are always hitting the news every other day. As a Bitcoin Diamond coins holder, it is important to understand what such losses mean and how they can be prevented.
One thing that you need to appreciate is that crypto coins do not leave their native networks. They can only reside there. This implies that even when you lose the tokens, they are still in the network but you cannot access them. Here are the main scenarios that point at a loss in the Bitcoin Diamond network.
- Sending BCD to the wrong address: When sending BCD, you are required to use the public keys/ address of the recipient. If by chance you miss any of the codes on the public keys of the recipient, the tokens will be lost. In such a situation, the tokens are still in the network, but they are under a different identity/owner. Remember that the transaction cannot be reversed after being entered into the public ledger.
- Hacking of the network and siphoning away of the tokens: If a hacker breaks and makes away with BCD tokens, it means that they have changed hands. This implies that they are still in the network but under a different identity.
- Forgetting/ losing the private keys: Perhaps the most important component when working with cryptocurrencies is the private keys. The keys call your BCD in the network to live so that you can make transactions. This means that if you lose them, the access to the coins is also lost. The tokens will still be in the network but in a dormant state. You will need to regenerate the private keys and use them to gain access to your tokens.
- Damage to the Bitcoin Diamond wallet: When you get BCD, they are kept in the cryptocurrency wallets. The wallets are digital locations (call them apps) that can be damaged by viruses, get deleted, or even lost together with the main computers they are installed in. In such a situation, the Bitcoin Diamond coins remain in the network but in a dormant state. You will need to restore the wallet to gain access to the tokens. If that does not happen, the BCD will remain dormant forever.
Bitcoin Diamond Regulation
The topic of cryptocurrency regulation is very complicated. When cryptocurrencies entered the market in 2009, many governments saw them as detractors. They were considered well-calculated efforts to help fell governments. In the US, the Federal Bureau of Investigation (FBI) was the first to capture the notion by indicating that the cryptocurrencies could easily be used by criminals to advance criminal activities. However, it is the anonymity capacity of cryptocurrencies that has made most administrations come out guns blazing and threatened to halt cryptocurrencies right on their tracks.
In China, the government felt that a lot of investments funds were moving out of the country unchecked. The administration was also irked by the possibility of cryptocurrencies making it impossible to collect taxes. But even with these direct threats from cryptocurrencies, it is interesting to realize that no country has passed a legal framework to guide their operations.
Many people are quick to ask the question; why are the countries not passing appropriate cryptocurrency regulations. Apparently, it is emerging that passing crypto related legal framework is not as easy as many people would want. Here are some important indicators of why no administration has managed to pass a cryptocurrency regulation.
- The cryptocurrencies are molting at a very fast rate. Even if you regulate them today, they will easily molt and surface in the coming days in completely different formations.
- Most administrations are caught by blockchain technology as a surprise. This means that they are forced to play catch-up when it comes to cryptocurrencies development and associated technologies.
- Blockchain technologies and encryption solutions provide the latest and most reliable solutions to problems such as Big Data that have refused to go away for many years. This means that no administration is willing to go hard on blocking the channels that are yielding reliable solutions.
- The topic of cryptocurrency is becoming highly emotive and political. Because cryptocurrencies are making it easy and cheap to send funds, any person going against them is deemed to be retrogressive and not worth being a leader.
- Cryptocurrencies such as Bitcoin Diamond do not belong to one party the way it happens with banks or standard organizations. Therefore, a localized approach that does not have a global appeal cannot be effective.
While most countries have only expressed their dissatisfaction with cryptocurrencies, one thing that comes out is that they are exploring every avenue to get legal frameworks in place. Therefore, Bitcoin Diamond should expect that legal frameworks will start hitting the news sooner or later. Indeed, different jurisdictions are at varying stages of drafting crypto related legislation. Check the next section on the legality of Bitcoin Diamond in different jurisdictions.
Is Bitcoin Diamond Legal?
Bitcoin Diamond is legal in most countries. Because most countries are yet to craft clear guiding frameworks, Bitcoin Diamond and other cryptocurrencies remain legal. This implies that you can buy, hold, and even trade in Bitcoin Diamond related activities without worrying about breaking the law. However, some countries are not taking the threats from cryptocurrencies lightly. Here is a close look at the Bitcoin Diamond and other cryptocurrency regulation in various states.
1) The European Union
- The European Union appears undecided on the clear path to take when it comes to cryptocurrencies. The top organs of the jurisdiction have been releasing indicators that appear to pull in different directions. The EU Central bank was the first to point at the risks associated with cryptocurrencies such as Bitcoin Diamond. The respected financial authority in the EU even asked the citizens to take every precaution because cryptocurrencies are highly volatile and could easily cause a lot of losses.
- Unlike the EU central bank, the EU Parliament is seeing a silver lining on the whole crypto thing. The legislative arm members pointed that the blockchain technologies and cryptographic solutions represent the apex of the finance and tech industries. Therefore, they cannot be wished away. Instead, the parliament has called for more studies to determine how the blockchain networks work. Because the EU does not have a policy to guide the members, each country is left to go for its preferred options. It is because of this that some nations like Austria have gone ahead to work on individual legal frameworks on cryptocurrencies.
- Austria is one of the EU countries that have moved ahead to come-up with a cryptocurrency legal framework to guide their local operations. The country has indicated that though numerous benefits come from cryptocurrencies such as Bitcoin Diamond, the risks are equally severe. The ministry of finance pointed that it was concerned by cryptocurrencies becoming hiding points for tax evaders and facilitating fraud.
- Austria's government has indicated that a cryptocurrency draft law will be ready in the coming months to help reduce the crypto related risks. The law will help to streamline the operations of cryptocurrencies so that they can be put to good use by all stakeholders. For example, more businesses can opt to take the cryptocurrency route because the payments are fast, cheap, and reliable. However, such transactions must be articulately captured to ensure that all the necessary taxes are paid for.
- The Austrian finance minister was also quick to the point that even with the local effort, the EU needed to come up with an urgent solution to address the problem. Even if the law works well in Austria, the overall effect will be minimal because citizens can still move out and trade cryptocurrencies in countries with no legal frameworks.
- Until early 2018, Russia appeared undecided about the route to take with cryptocurrency regulations. Initially, the country’s administration had indicated that it was not interested in regulating cryptocurrencies because such a move would give them legitimacy closer to the legal tenders. However, the government changed the approach after it emerged that the cryptocurrencies such as Bitcoin Diamond were attracting huge investments and distorting the demand for conventional assets such as shares, bonds, and even real estates.
- Early in January of 2018, the finance ministry indicated that there was a legal gap and it was impossible to tell whether traders accepting cryptocurrencies for payment were committing offenses. The ministry indicated it would come-up with a draft law to help guide cryptocurrencies and their applications. By the close of February, the ministry indicated that the draft law, digital finance asset bill, was ready and would be presented to the parliament.
- The new crypto bill takes a comprehensive look at the crypto industry to define and guide its operations. It defines cryptocurrencies and sets the stage for ICOs in Russia. It also sets the standard for mining and outlines measures to ensure that every person in the crypto industry pays taxes. The Russian authorities have also reported that they will be working with other states especially Venezuela to learn how it has managed to install and use a state-run crypto network.
- As other countries insist on punishing cryptocurrencies, one jurisdiction that sees everything differently is Switzerland. The country’s administration believes that blockchain technologies are the ideas that time has come and should be embraced. Though the minister of economics, Johann Schneider-Ammann, the government indicated it would use every available avenue to become a crypto nation.
- In addition to reaching to most cryptos and asking them to set their bases in the country, the government also setup an ICO-working group that will look at setting a supportive framework for ICOs. This is the reason why most cryptocurrencies have been taking their foundations to Switzerland. Even if other countries opt to become obstacles by limiting the growth of cryptocurrencies, developers can rest assured that Switzerland will always be there for them.
Bitcoin Diamond and Taxes
The same way that Bitcoin Diamond regulations are complicated, so is the topic of taxes. As a cryptocurrency that is built on the pillar of enhanced anonymity, a lot of people have been arguing that it presents the right platform for tax-free lifestyle. However, tax experts have a different opinion when it comes to taxes. They argue that though the Bitcoin Diamond network is anonymous, the privacy cannot last forever.
The cryptographic technologies are advancing so fast that even current blockchain advancements are likely to be superseded by what will come by in the coming months or years. For example, Bitcoin was initially thought to be completely anonymous until 2016 when new technologies that could reveal the identities of Bitcoin owners were discovered. In the coming days, newer technologies are likely to open all the things that were thought to be anonymous. This could open the door to a lot of lawsuits against you.
According to tax and financial experts, blockchain technologies represent the apex of the fintech niche. They insist that nobody should shy away from the technology development because that is the ultimate roadmap that will help individuals, organizations, and governments succeed. Here are top suggestions that you should use to enjoy all the benefits from Bitcoin Diamond cryptocurrency without breaking tax regulations.
- Ensure that income generated from trading Bitcoin Diamond is captured in the books of accounts.
- All revenues arising from Bitcoin Diamond should be considered taxable.
- Make sure to take note of important details such as traded volume, value of BCD, and corresponding fiat.
- For traders accepting payment in BCD, it is important to ensure that the standard rules of accounting are followed in capturing related transactions.
- Do not hesitate to work with tax experts to streamline the books of accounts especially if you want to fix reports from the period that you were not tax compliant.
Does Bitcoin Diamond Have a Consumer Protection?
Bitcoin Diamond does not have consumer protection. When developers finish working on the core code and release it to the crypto community, the ownership changes forever. Though the lead team still maintains the role of developing the network and maintaining most decisions are arrived at through consensus.
At Bitcoin Diamond, the cryptocurrency employs Proof-of-Work algorithm that means all the nodes in the network are free to vote when issues arise. This implies that you are on your own after joining the Bitcoin Diamond network. Indeed, you cannot even take complains to a court of law because the cryptocurrencies are not regulated. To operate safely after joining the Bitcoin Diamond network, here are some useful tips to follow.
- Make sure to always triple check the public address before sending value on the Bitcoin Diamond network.
- Ensure to maintain the Bitcoin Diamond client and your computer updated to reduce the danger of attacks.
- Pick the cryptocurrency exchanges with great caution to reduce the danger of hacking and loss of BCD.
- Make sure to keep your BCD in cold storage when they are not being traded in the markets.
- Never share the private address of your Bitcoin Diamond with third parties.
- Always maintain a backup of your Bitcoin Diamond wallet to make restoration easy and fast.
- Only invest what you can afford to lose because the price of cryptocurrencies such as Bitcoin Diamond can experience extreme swings.
Illegal Activities with Bitcoin Diamond
When criminals set out to implement their heinous acts, they prefer working in darkness/ hidden. This is why most of the cryptocurrencies have become special attractions to cybercriminals. Because they are anonymous, the criminals believe they can hide from getting discovered by both the crypto network development teams and government authorities. By the close of the first quarter of 2018, no illegal activity had been reported with Bitcoin Diamond.
Is Bitcoin Diamond Secure?
Yes, Bitcoin Diamond is secure. The cryptocurrency was forked from the Bitcoin core and a lot of improvements added to make it extra secure. Some of the main efforts used to enhance the security of the Bitcoin Diamond network include.
- Advanced cryptography.
- The network employs relays protection for enhanced protection.
- A highly advanced development team.
- Decentralizing mining to avoid any party controlling 51% or more of coins.
Is Bitcoin Diamond Anonymous?
Most people joining cryptocurrencies want to have assurances that their transactions and personal info will not be revealed to third parties. Bitcoin Diamond took anonymity to a whole new level by adopting advanced cryptography. The technology helps to encrypt both the user details and transactions so that no third party can discover your identity. Indeed, even the miners who confirm the transactions can only follow back to confirm the value in the public address only.
Has Bitcoin Diamond Ever Been Hacked?
Reports of hacking in the cryptocurrency industry have become way too common. In many of the cases, the hacking takes place at the exchange levels. However, it can also happen at the cryptocurrency network levels. Despite numerous efforts by attackers to hack Bitcoin Diamond, no successful attempt had been reported by early 2018. However, it is important that users take caution by ensuring they keep their BCD in cold storage when not trading them. They should also follow the rule of the thumb when joining the cryptocurrency niche; only invest what you can afford to lose and spread the risk as widely as possible.
How Can I Restore Bitcoin Diamond?
If you have lost BCD, the possibility of restoring them depends on the nature of loss and preparation for such losses. Here, it is important to restate one important fact about cryptocurrency assets; they NEVER leave their native networks. No matter the nature of the loss, the assets are always on the network. Therefore, how can you restore lost BCD?
If you lost BCD through sending to the wrong address or hacking, the actions are considered completed transactions. This means that they have changed hands and cannot be restored. You can only work towards getting other BCD because there is no method that can be used to regain them. Note that you only have the public keys of the recipient which is not enough to narrow down to personal details.
If you lost BCD through damage to the wallet, you would need to reinstall it to restore lost coins. This means that you will need to be prepared with a backup well before the loss happens. Make sure to store the backup in a separate computer from the one with the main Bitcoin Diamond client.
If you lost Bitcoin Diamond by forgetting the private keys, they must be regenerated. When you first used the cryptocurrency wallet, it generated the private seed phrase that should be used to regenerate the private keys. If you fail to get the private keys, the BCD will be lost forever.
Why Do People Trust Bitcoin Diamond?
The race by cryptocurrencies to become the best is gaining pace. Every cryptocurrency out there targets winning the hearts of the community and growing to surpass the levels hit by Bitcoin. However, this is never easy with more than 1500 cryptocurrencies in the market. However, Bitcoin Diamond is fast gaining traction and winning a lot of trust from the community. Here are some of the reasons why a lot of people trust it.
- The cryptocurrency is marketed as a better option compared to Bitcoin. Because of the huge success associated with Bitcoin, any notion that it is an improvement is endearing it to the followers.
- Bitcoin Diamond transactions are faster and cheaper compared to top cryptocurrencies such as Bitcoin Cash and Ethereum. The fact that the value of BCD is still small and it has a relatively bigger block size (8mb) compared to Bitcoin means that the transactions fee is lower.
- The value of the cryptocurrency has been doing relatively well in the market especially in March and April of 2018. Most people interested in cryptocurrencies look at the value of the assets in the markets. The fact that the cryptocurrency is new and it is still beating others such as Ontology and TRON means that it has a very high potential.
- The association to Bitcoin has made Bitcoin Diamond to be considered to hold the same potential for faster growth. Even those who had the doubts are now agreeing that Bitcoin Diamond might be the way to go.
- The cryptocurrency is more private compared to Bitcoin. Many people coming to cryptocurrencies want to operate in anonymity for security, tax, or other reasons.
- The Bitcoin Diamond community is fast growing and making the cryptocurrency to grow rapidly. This was partially achieved through the distribution of part of the BCD coins to those who already have BTC.
History of Bitcoin Diamond
While the history of Bitcoin and Bitcoin Diamond are intertwined, the actual launching date of the later is November 24th of 2017. At exactly 1:20 pm, the Bitcoin Diamond fork was implemented. This meant the starting of a new chain from block 495,866. A few days after the launch, the price of BCD shot to the highest point of $94.
In early April, the price of BCD continued on a downward trend and reached a low of $2.09. This is considered to be the right range of the cryptocurrency as it starts to trace its way up the ladder.
Who Created Bitcoin Diamond?
Like Bitcoin, the Bitcoin Diamond founders have opted to operate using pseudonyms. They are only known as Team Avery and Team 007. This indicates that there could be two development teams that worked towards the fork that brought about Bitcoin Diamond. Both teams are located in Singapore.
Bitcoin Diamond Videos and Tutorials
Bitcoin Diamond Overview at The Time of The Fork
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