Starting with Bitcoin Cash and Bitcoin Gold, forks have kept popping up in the crypto world and it doesn’t look like it’s going to stop anytime soon. The newest bitcoin fork to appear on the scene is Bitcoin Private.
Bitcoin Private is based on Zclassic (ZCL) – which is a copy of Zcash, which in turn is a copy of bitcoin. That makes it practically a fork of a fork.
The issues that forking has is that the probability of these coins’ value crashing increases and investors will want to sell them as soon as possible resulting in a massive drop in their value.
While forks like Bitcoin Cash, Bitcoin Gold, and Ethereum Classic turned out to be extremely profitable and needed almost 0 to none effort on the investor’s part, zclassic is a perfect example of the difficulties forks encounter, as its price saw a drop below $2 in 2017, while zcash maintained a steady position around $100.
But Bitcoin Private team leader, Rhett Creighton, was not ready to call it quits so soon, and came up with the idea of relocating zclassic to a Bitcoin hard fork, which was called Bitcoin Private.
This shift makes Bitcoin Private a novel event in the forking environment, but many in the crypto community think quite the contrary, calling it either “brand stealing”, “unnecessary,” or “an abominable potpourri of buzzword features.”
By distributing free coins to Bitcoin owners and zcash owners alike, Bitcoin Private has ensured that it will receive a great deal of attention.
The nature of Bitcoin Private’s fork makes it one of a kind, with a forking process that will be the most complex to currently exist.
Bitcoin Privat’s main aim is to reestablish zcash’s founder fee system where 20% of the mined tokens are assigned to development.
Eliminating this founder’s fee was the basis of zclassic, but it failed to support its wallet, eventually leading to zclassic’s crash.
“Zclassic suffered from the same ideas which it derived its greatness: the absence of a founder’s tax led to a lack of active development,” said its whitepaper regarding the reason for zclassic’s downfall.
The move to re-introduce the founder’s fee but with small difference t is what sets Bitcoin Private from zcash. Aside from that, the two digital coins are essentially the same, but the situation will be continuously updated as the platform is launched.
Many investors see Bitcoin Private as a profit-making opportunity as they consider it to be it as an exact replica of zcash.
This stance towards forks is not something new; other forks have also been criticized. Charlie Lee just recently voiced his concerns for using the name Litecoin for Litecoin Cash, deeming it a scam.
CEO of Ethereum, Vitalik Butterin, also expressed his confusion regarding Bitcoin Private saying “Why not just use zcash?”
But in spite of the negative feedback and wariness, Creighton has decided to remain optimistic stating that:
“We’re going to be tapping into all of the people that are key holders of bitcoin, so we’re tapping into that network, and what we’re giving those people is zk-snarks privacy, plus the same decentralized mining as bitcoin gold, plus faster block times and larger blocks.”
It remains to be seen if Bitcoin Private will be just another opportunity to swindle people out of their money or a genuine fork with innovative features.
Source: Read Full Article