Bitcoin Diamond (BCD) Review

  This Bitcoin Diamond review has revealed that Bitcoin Diamond, also known as BCD, despite sharing many similarities with Bitcoin, does not use the SHA-256 algorithm. The development team moved away from this as it became overly dominated by specialised ASIC miners who have, somehow, caused Bitcoin to become centralised to an extent.    

What is Bitcoin Diamond?

  Bitcoin Diamond (BCD) is a Bitcoin hard fork launched in 2017, designed to solve Bitcoin’s scalability, high transaction fees, and mining centralisation issues. Unlike Bitcoin, BCD uses a GPU-friendly X13 proof-of-work algorithm instead of SHA-256, allowing ordinary users to mine coins with standard graphics cards.  

Rank	Broker	Broker Review	Regulators	Minimum Deposit	Visit Broker
🥇		Read Review	ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA	$100
🥈		Read Review	FSCA, FCA, DFSA, FSA, CMA	$0
🥉		Read Review	CySEC, MWALI, FSCA	$25
4		Read Review	ASIC, CySEC, FSA, SCB	$200
5		Read Review	FSA, FSCA	$250
6		Read Review	FSA, FSC, FSCA, ASIC, CMA	$20
7		Read Review	FSC, FSCA	$50
8		Read Review	ASIC, CySEC, FSCA, FSA, FSC, CMA	$100
9		Read Review	ASIC, CySEC, IFSC, DFSA, FCA	$5
10		Read Review	FSA, CySEC, FSCA, FSC	$10

Key Features and Takeaways of Bitcoin Diamond

Bitcoin Diamond (BCD) is a Bitcoin hard fork launched in 2017 with the goal of improving transaction speed, accessibility, and scalability while preserving Bitcoin’s core principles of decentralisation and security.

Key Features of Bitcoin Diamond

• Higher Supply Cap: Bitcoin Diamond expanded the total supply to 210 million BCD, making it more affordable for everyday users compared to Bitcoin.
• Faster Transactions: Shorter block times enable quicker confirmations and improved network efficiency.
• Lower Transaction Fees: Optimised block parameters help reduce congestion and lower on-chain fees.
• GPU-Friendly Mining: Uses the X13 PoW algorithm, allowing GPU miners to participate instead of ASIC dominance.
• Enhanced Privacy: Optional encryption features provide improved transaction privacy for users.
• Bitcoin-Based Security: Retains Bitcoin’s UTXO model and core blockchain architecture.

Key Takeaways

• Bitcoin Diamond focuses on mass adoption by improving affordability and usability.
• It offers a more inclusive mining ecosystem through GPU mining.
• Designed for users seeking faster, cheaper Bitcoin-style transactions.
• Best suited for small transactions, long-term holders, and decentralisation advocates.
• Carries higher volatility due to lower market cap and adoption than Bitcoin.

Bitcoin Diamond Mining

  Bitcoin Diamond, like Bitcoin, makes use of a Proof of Work algorithm, which means that BCD can be mined. Users can mine BCD either individually as full node clients or they can partake in public mining pools where members of the pool share the workload involved with mining and split the rewards amongst themselves, proportional to the work and effort of each member.   To mine individually, users will need the following:

Pros and Cons

Bitcoin Diamond (BCD) Transaction Fees

BCD’s low transaction fees make it suitable for everyday micro-transactions.  

Should you buy Bitcoin Diamond?

BCD is a high-risk, speculative cryptocurrency. Key considerations:

• High Volatility: Recent price swings highlight the speculative nature.
• Limited Adoption: Smaller ecosystem than Bitcoin.
• Trading Options: Available on Bitget, Binance, KuCoin, and a few smaller exchanges.
• Use Cases: Best for GPU miners, long-term holders of low-cost Bitcoin alternatives, and risk-tolerant traders.

What Makes Bitcoin Diamond Unique?

  BCD differentiates itself from Bitcoin and Bitcoin Gold in several ways:

• Higher Coin Supply: 210 million BCD versus 21 million BTC.
• Faster Transactions: Shorter block times improve confirmation speed.
• Lower Transaction Fees: Optimised block parameters reduce congestion.
• GPU-Friendly Mining: Avoids ASIC centralisation, promoting decentralised mining.
• Optional Privacy Features: Enhanced encryption for users who prioritise confidentiality.
• Bitcoin-Based Security: Maintains the UTXO model and blockchain fundamentals.

  BCD focuses on mass adoption, offering a cheaper and faster Bitcoin-style alternative.  

Bitcoin Diamond Mining Guide

• Mining BCD is open to everyone thanks to the GPU-friendly algorithm.

Mining Options

• Solo Mining: Run a full node and mine independently.
• Mining Pools: Collaborate with other miners to increase chances of rewards.

Requirements for Mining BCD

Bitcoin Diamond vs Bitcoin vs Bitcoin Gold vs Bitcoin Cash – Key Differences

How to Buy and Trade Bitcoin Diamond (BCD) in South Africa

Investing in Bitcoin Diamond in South Africa requires understanding local regulations, exchange availability, and transaction methods. Here’s a step-by-step guide to make the process simple, safe, and effective.  

Step 1 – Choose a Crypto Exchange

Select a platform that lists BCD and supports South African users:

• International options: Binance, Bitget, KuCoin, Phemex
• Local considerations: Some platforms allow deposits via ZAR, but often BCD must be bought through BTC or USDT pairs.
• Tip: Always check if the exchange supports KYC verification for South African residents.

Step 2 – Create and Verify Your Account

• Sign up with your chosen exchange.

  Complete KYC (Know Your Customer) verification. South African exchanges require:

• Government-issued ID (passport or driver’s license)
• Proof of residence (utility bill or bank statement)
• Verification ensures compliance with the FSCA and allows withdrawals without limitations.

Step 3 – Deposit Funds

South African investors can fund accounts using:

• Bank transfer (EFT) – Usually lower fees, slower processing (1–3 business days).
• Credit/debit cards – Instant deposits, slightly higher fees.
• P2P trading – Exchange ZAR for BTC or USDT from local users directly.
• Pro Tip: Most investors purchase USDT or BTC first, then trade for BCD.

Step 4 – Buy or Swap for Bitcoin Diamond

• Navigate to the trading pair (e.g., BCD/USDT or BCD/BTC).
• Enter the amount of BCD you want to buy.
• Review price, fees, and total cost, then confirm the order.
• Tip: Use limit orders to reduce slippage on lower-liquidity pairs.

Step 5 – Secure Your BCD

• Withdraw your BCD to a personal wallet rather than leaving it on the exchange:
• Hardware wallets: Ledger, Trezor
• Software wallets: Atomic Wallet, Trust Wallet
• Always back up your private keys. Loss of keys means loss of funds.
• Security Reminder: Exchanges can be hacked, so self-custody reduces counterparty risk.

Step 6 – Trading and Managing Your Investment

• Monitor market trends, liquidity, and exchange spreads.
• Consider short-term trading for profit or holding long-term if you believe in BCD’s utility.
• Track transaction fees, which are typically lower than Bitcoin.
• Evaluate your portfolio regularly and adjust risk exposure based on market volatility.
• Extra Tips for South African Investors
• Diversification: Don’t invest all crypto funds in BCD; use it as a high-risk satellite asset.
• Tax Compliance: Report all gains/losses to SARS under CGT or Income Tax rules.

  Regulatory Awareness: FSCA continues to monitor cryptocurrency trading; stay updated with exchange compliance announcements.    

What Problem Does Bitcoin Diamond Solve?

• Bitcoin Diamond was created to address Bitcoin’s scalability limitations, high transaction fees, and mining centralisation.
• By increasing supply, reducing fees, and enabling GPU mining, BCD aims to improve everyday usability while maintaining Bitcoin’s core decentralised payment framework.

Key Solutions Table

Bitcoin Diamond vs Bitcoin vs Bitcoin Gold

• Bitcoin Diamond differentiates itself by prioritising affordability and transaction efficiency, while Bitcoin focuses on scarcity and security, and Bitcoin Gold emphasises decentralised mining.
• This positions BCD as a practical Bitcoin-based alternative rather than a long-term store-of-value competitor.

Comparison Table

Bitcoin Diamond Use Cases & Adoption

• Bitcoin Diamond is primarily used for peer-to-peer payments, low-cost transfers, and GPU-based mining participation.
• While adoption remains limited compared to Bitcoin, it serves users seeking faster transactions and lower fees without departing from Bitcoin’s underlying architecture.

Use Cases Table

History and Background of Bitcoin Diamond

• Bitcoin Diamond (BCD) was created in November 2017 during a period when multiple Bitcoin forks emerged in response to scalability debates within the crypto community.
• At the time, Bitcoin transaction fees were rising sharply due to network congestion, and mining power was increasingly controlled by large-scale ASIC operators.

  The BCD development team believed that Bitcoin’s original vision of decentralisation was being undermined by:

• Mining centralisation
• High transaction costs
• Slower confirmation speeds
• Limited accessibility for small users

  By introducing a new mining algorithm (X13) and expanding the total supply to 210 million coins, Bitcoin Diamond aimed to rebalance mining participation and make transactions more affordable. Unlike some forks that focused purely on block size increases, BCD concentrated on affordability, mining inclusivity, and transaction efficiency.  

How Bitcoin Diamond Works (Technical Overview)

• Understanding how Bitcoin Diamond functions helps investors evaluate its long-term viability.

1. Proof-of-Work Consensus

• Like Bitcoin, BCD uses a Proof-of-Work (PoW) consensus mechanism. Miners validate transactions and secure the network by solving cryptographic puzzles.

  However, instead of SHA-256 (used by Bitcoin), BCD uses:

• X13 Algorithm
• GPU-friendly mining
• Reduced ASIC dominance

  This means everyday users with high-performance graphics cards can participate in mining.  

2. UTXO Model

Bitcoin Diamond retains Bitcoin’s UTXO (Unspent Transaction Output) structure. This model:

• Tracks individual outputs rather than balances
• Enhances transaction traceability
• Maintains compatibility with Bitcoin-style wallet architecture

3. Increased Coin Supply

• Bitcoin has a maximum supply of 21 million coins.

  Bitcoin Diamond increased this to: 210 million BCD   The purpose of this was psychological and practical:

• Lower per-unit cost
• Improved accessibility
• More “spendable” perception for everyday users

Tokenomics of Bitcoin Diamond

• Tokenomics play a critical role in determining long-term sustainability.

  Maximum Supply: 210,000,000 BCD Circulating Supply: Varies based on mining emissions and exchange listings. Emission Model: Similar halving structure to Bitcoin. Inflation Rate: Decreases over time as mining rewards reduce.   Compared to Bitcoin, BCD is less scarce but potentially more usable for transactional purposes.  

Bitcoin Diamond Ecosystem

While smaller than Bitcoin’s ecosystem, BCD includes:

• Cryptocurrency exchanges
• Mining pools
• Compatible wallets
• Blockchain explorers
• Community governance forums

  However, it lacks:

• Institutional adoption
• Large DeFi integrations
• Major corporate partnerships
• Significant merchant acceptance

  This limited ecosystem contributes to its higher risk profile.  

Market Performance and Volatility

Bitcoin Diamond has experienced significant price volatility since launch.   Common characteristics include:

• Sharp price spikes during bull markets
• Steep corrections during bearish cycles
• Lower liquidity compared to BTC
• Strong correlation with Bitcoin’s price movements

  Because of its smaller market cap, even moderate buying or selling pressure can result in substantial price swings.   Investors should consider:

• Market sentiment
• Exchange liquidity
• Trading volume
• Overall crypto market conditions

Security Considerations

• Security in Proof-of-Work networks is largely determined by hash rate.

  Strengths:

• PoW security model
• UTXO-based structure
• Mining validation process

  Weaknesses:

• Lower hash rate than Bitcoin
• Smaller mining network
• Potential vulnerability to 51% attacks compared to BTC

  Bitcoin remains the most secure PoW network due to its massive hash rate dominance.  

Adoption and Real-World Utility

Bitcoin Diamond is primarily used for:

• Peer-to-peer payments
• Low-cost transfers
• Small-scale trading
• GPU mining participation

  It is not widely accepted by merchants and does not have the same institutional trust as Bitcoin.   Its adoption is mostly within:

• Crypto enthusiasts
• Smaller exchange communities
• Mining participants

Long-Term Outlook for Bitcoin Diamond

The long-term future of BCD depends on:

• Development activity
• Community growth
• Exchange listings
• Market demand
• Broader crypto adoption

  Potential scenarios include:

Bullish Scenario:

• Increased mining interest
• Growing adoption in developing markets
• Exchange expansion
• Renewed interest in decentralised mining

Bearish Scenario:

• Declining mining participation
• Exchange delistings
• Reduced liquidity
• Market irrelevance compared to dominant assets

  Because it competes with Bitcoin, Bitcoin Gold, Bitcoin Cash, and newer Layer-1 blockchains, its competitive environment is challenging.  

Who Should Consider Bitcoin Diamond?

Bitcoin Diamond may appeal to:

• GPU miners looking for alternatives
• High-risk crypto traders
• Small-cap speculative investors
• Users wanting lower-fee Bitcoin-style transfers

  It may not suit:

• Institutional investors
• Conservative long-term holders
• Risk-averse individuals
• Users seeking maximum network security

Bitcoin Diamond vs Bitcoin – Strategic Comparison

• Scarcity
• Institutional adoption
• Store-of-value narrative
• Maximum network security

  Bitcoin Diamond prioritises:

• Affordability
• Accessibility
• GPU mining
• Faster confirmations

  This makes BCD a transactional alternative rather than a digital gold competitor.    

Is Bitcoin Diamond Suitable for South African Investors?

For South African investors, key considerations include:

• Exchange availability
• ZAR on-ramp options
• Regulatory environment
• Tax treatment of crypto gains
• Electricity costs for mining

  GPU mining profitability in South Africa depends heavily on electricity pricing and load-shedding stability. Investors should consult a tax professional regarding crypto capital gains reporting.  

Expanded Risk Analysis

Before investing in BCD, consider the following risks:   Liquidity Risk Lower trading volume increases slippage risk. Market Risk Highly sensitive to broader crypto cycles. Development Risk Smaller developer ecosystem. Regulatory Risk Changing crypto regulations globally. Competitive Risk Competes against dominant networks with larger ecosystems.  

Competitive Positioning of Bitcoin Diamond in the 2026 Crypto Market

• Bitcoin Diamond operates in an increasingly competitive cryptocurrency environment.
• Since its launch in 2017, the crypto market has matured significantly, with thousands of Layer-1 blockchains, scalable smart contract platforms, and institutional-grade digital assets entering the ecosystem.

  To understand BCD’s relevance today, it must be evaluated within this broader market context.  

Market Landscape

Bitcoin Diamond competes with: Bitcoin (store of value dominance) Bitcoin Cash (payment-focused fork) Bitcoin Gold (GPU-mining fork) Litecoin (fast payment cryptocurrency) Emerging Layer-1 chains with high scalability   Unlike newer blockchains that support smart contracts and decentralised applications, BCD remains primarily a transactional cryptocurrency. This limits its ecosystem growth but preserves simplicity and alignment with Bitcoin’s original payment vision.  

Liquidity and Exchange Considerations

• Liquidity is a critical factor when evaluating smaller-cap cryptocurrencies like Bitcoin Diamond.

  Lower liquidity can lead to:

• Higher price slippage
• Wider bid-ask spreads
• Increased volatility
• Difficulty exiting large positions

  Investors should monitor:

• 24-hour trading volume
• Exchange depth
• Listing stability
• Delisting risk

  Assets with limited exchange presence face higher structural risk compared to dominant cryptocurrencies.  

Psychological Appeal of Higher Supply Coins

• One often-overlooked factor in crypto adoption is psychological pricing.

  Bitcoin’s high unit price can discourage new retail investors who misunderstand fractional ownership. Bitcoin Diamond’s 210 million supply creates: Lower per-coin pricing Perceived affordability Increased retail appeal Greater transactional flexibility   While scarcity drives long-term value in Bitcoin’s case, usability and affordability are core pillars of BCD’s design philosophy.    

Mining Decentralisation and Network Sustainability

Mining centralisation remains one of the biggest debates in Proof-of-Work cryptocurrencies.   Bitcoin’s SHA-256 ecosystem is dominated by industrial-scale ASIC mining farms. Bitcoin Diamond attempts to counterbalance this trend by: Supporting GPU mining Reducing hardware entry barriers Encouraging distributed participation   However, long-term sustainability depends on:

• Active mining participation
• Competitive profitability
• Network security incentives

  If mining participation declines, security risks increase. Therefore, economic incentives must remain aligned with network growth.  

Regulatory and Compliance Outlook

Global cryptocurrency regulation continues evolving. Smaller cryptocurrencies face unique challenges:

• Exchange compliance pressures
• Delisting risk
• Reduced institutional interest
• Stricter KYC integration requirements

  Bitcoin benefits from a first-mover advantage and regulatory recognition. Smaller forks like Bitcoin Diamond may face higher scrutiny or reduced prioritisation by major exchanges. Investors should monitor regulatory developments in key markets, especially those influencing exchange operations.  

Portfolio Allocation Strategy

For investors considering Bitcoin Diamond, portfolio management is critical.   Common allocation strategies include: Small-cap diversification (1–5% of crypto portfolio) High-risk speculative allocation Short-to-medium-term trading exposure Mining-based accumulation strategy   Bitcoin Diamond should generally not form the core of a crypto portfolio. Instead, it may serve as a high-volatility satellite asset alongside larger, more established holdings.  

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Frequently Asked Questions

What is Bitcoin Diamond (BCD)?

Bitcoin Diamond is a cryptocurrency created from a Bitcoin hard fork in 2017. It was designed to improve transaction speed, reduce fees, enhance privacy, and make mining more accessible through GPU-friendly algorithms rather than ASIC dominance.

Why was Bitcoin Diamond created?

Bitcoin Diamond was created to address Bitcoin’s scalability, high transaction fees, and mining centralisation. Its goal is to promote mass adoption by offering faster transactions, lower costs, and fairer mining participation while retaining Bitcoin’s core blockchain principles.

How is Bitcoin Diamond different from Bitcoin?

Bitcoin Diamond has a larger supply of 210 million coins, faster confirmations, lower fees, optional privacy features, and GPU-friendly mining. Bitcoin, by contrast, prioritises scarcity, security, and widespread adoption but relies heavily on ASIC mining.

What mining algorithm does Bitcoin Diamond use?

Bitcoin Diamond uses the X13 proof-of-work algorithm, which is designed to be GPU-friendly and resistant to ASIC mining. This allows individual miners with consumer-grade hardware to participate more easily in securing the network.

Is Bitcoin Diamond profitable to mine?

Bitcoin Diamond mining profitability depends on electricity costs, hardware efficiency, network difficulty, and market price. While GPU mining lowers entry barriers, profitability can fluctuate significantly due to price volatility and competition within mining pools.

What is the maximum supply of Bitcoin Diamond?

Bitcoin Diamond has a maximum supply of 210 million BCD, which is ten times higher than Bitcoin’s 21 million limit. This increased supply aims to improve affordability and accessibility for everyday users and small investors.

What are the main use cases of Bitcoin Diamond?

Bitcoin Diamond is primarily used for peer-to-peer payments, low-fee transactions, and decentralised value transfers. It also appeals to GPU miners and users seeking a Bitcoin-based alternative with improved usability and reduced transaction costs.

Is Bitcoin Diamond a good investment?

Bitcoin Diamond may appeal to speculative investors seeking low-priced crypto assets with upside potential. However, it carries a higher risk due to lower adoption, limited exchange support, and greater volatility compared to established cryptocurrencies like Bitcoin.

Where can Bitcoin Diamond be stored safely?

Bitcoin Diamond can be stored in compatible desktop, mobile, or hardware wallets that support BCD. Users should always back up wallet keys securely and use reputable wallet providers to reduce the risk of loss or theft.

What risks should investors consider with Bitcoin Diamond?

Key risks include lower liquidity, smaller ecosystem development, exchange delistings, and high price volatility. As a Bitcoin fork, Bitcoin Diamond also faces strong competition from Bitcoin and other established cryptocurrencies.

How is BCD different from Bitcoin?

Bitcoin Diamond differs from Bitcoin by increasing total supply to 210 million coins, implementing faster confirmation times, reducing transaction costs, enabling GPU-friendly mining via the X13 algorithm, and offering optional privacy enhancements. Bitcoin prioritises scarcity, institutional adoption, and long-term store-of-value security.  

Can I mine BCD at home?

Yes, Bitcoin Diamond can be mined at home using compatible GPUs and mining software that supports the X13 algorithm. Unlike Bitcoin’s ASIC-dominated ecosystem, BCD allows individual miners with consumer-grade graphics cards to participate, though profitability depends on electricity costs and network difficulty.  

What is the block reward for BCD mining?

The block reward for Bitcoin Diamond mining varies depending on network rules, halvings, and overall difficulty adjustments. Miners receive newly minted BCD plus transaction fees, with final earnings influenced by mining pool participation, hash rate contribution, and prevailing market price.  

Is BCD a good investment?

Bitcoin Diamond is considered a high-risk, speculative cryptocurrency due to lower adoption, smaller market capitalisation, and higher volatility compared to Bitcoin. It may appeal to risk-tolerant investors seeking potential upside in smaller-cap assets, but it is unsuitable for conservative or institutional portfolios.  

Where can I trade BCD?

Bitcoin Diamond can be traded on selected cryptocurrency exchanges such as Binance, Bitget, and KuCoin, typically against pairs like BCD/USDT or BCD/BTC. Availability may vary by region, and liquidity is generally lower than that of major cryptocurrencies like Bitcoin or Ethereum.  

What wallets support BCD?

Bitcoin Diamond is supported by various desktop, mobile, and hardware wallets compatible with BCD’s blockchain. Users should select reputable wallet providers offering strong security features, private key control, and backup functionality to ensure safe long-term storage of funds.  

Does BCD have privacy features?

Yes, Bitcoin Diamond includes optional privacy enhancements that allow users to encrypt transaction details for improved confidentiality. While not fully anonymous, these features provide stronger privacy protections than standard Bitcoin transactions, which remain publicly traceable on the blockchain.  

What is the maximum supply of BCD?

Bitcoin Diamond has a maximum supply of 210 million coins, ten times larger than Bitcoin’s fixed 21 million cap. This expanded supply aims to enhance affordability, improve transactional usability, and encourage broader participation without compromising blockchain integrity.  

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