FAQ
A super secure value store and cash payment system for the New Digital World. Bitgold is faster than both Bitcoin and Litecoin regarding confirmation times and features an innovative 51% Attack Defense System.
Who controls Bitgold?
Bitgold is 100% open-source and is controlled by all Bitgold users around the world. Developers are improving the software but they can’t force a change in the rules of the Bitgold protocol because all users are free to choose what software they use.
In order to stay compatible with each other, all users need to use software complying with the same rules. Bitgold can only work decently with a complete consensus between all users. Therefore, all users and developers have strong incentives to adopt and protect this consensus.
What gives Bitgold value?
Bitgolds have value because they are useful as a form of money. Bitgold has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies).
In short, Bitgold is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitgold, this can be measured by its growing base of users, merchants, and startups. As with all currency, Bitgold’s value comes only and directly from people willing to accept it as payment.
Is Bitgold backed by physical asets?
No. It’s impossible to back a cryptocurrency with a precious asets without introducing centralization. Bitgold is fully decentralized and distributed.
Bitgold can be thought of as digital gold with a fixed total supply and mined by computers. Although we think of gold as a store of value, in the past it was used as a medium of exchange and unit of account. This alignment with gold is not trivial as Bitgold is seeking a return to a monetary “policy” which will allow anyone anywhere in the world to use a single digital currency that will serve all 3 purposes equally well.
