Ever since Bitcoin came out with forks such as Bitcoin Cash, Bitcoin Gold etc. Forking has been the trend in the crypto world and it doesn’t seem forking is done just yet. Say hello to the newest bitcoin fork known as Bitcoin Private.
Bitcoin Private is based on zclassic which in itself is a copy of zcash, the well-known copy of bitcoin. Confusing? Well, we’re just getting started.
The problem with forking is that the likelihood of these coins failing increases as investors will look to quickly sell them resulting in them dropping to dropping down to pennies.
While forks such as Bitcoin Gold. Ethereum Classic etc. proved to be hugely profitable and needed minimal efforts on the investor’s part zclassic is the ideal example of how tough it can be for forks as it fell below $2 in 2017 while zcash remained firm around $100.
But Rhett Creighton, Bitcoin Private team lead wasn’t ready to give in just yet and proposed the idea of shifting zclassic to a Bitcoin hard fork calling it Bitcoin Private.
This migration makes Bitcoin Private a whole new phenomenon when it comes to forking but many crypto fanatics have already downplayed it calling it “brand stealing” “unnecessary,” “an abominable potpourri of buzzword features.”
Yes, distribution of free coins to not just Bitcoin holders but zcash holders as well has ensured Bitcoin Private has received plenty of attention in recent times is it really innovative?
While the forking nature of Bitcoin Private makes it the first of its kind it’s forking is going to be the most complex to date.
The New Founder’s Fee
The main aim of Bitcoin Private is to re-introduce zcash’s founder fee system where 20% of the mined tokens are allocated for the development.
Getting rid of this founder’s fee was the core of zclassic but its failure to maintain its wallet is what led to zclassic’s downfall with Bittrex even going ahead and shutting it down.
The whitepaper stated the following reason for it
“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.”
The action to bring back the founder’s fee but with a slight twist is what differentiates Bitcoin Private from zcash. Apart from that, the two coins are pretty much the same but updates will continue to come as the platform is launched.
Are hard forks a scam?
For many investors, Bitcoin Private is only a profit-making opportunity as they consider it the exact copy of zcash.
Criticism of forks isn’t something new. Charlie Lee only recently raised concerns regarding the use of the name Litecoin for Litecoin Cash calling it a scam.
Vitalik Butterin, CEO of Ethereum too voiced his confusion over Bitcoin Private saying “Why not just use zcash?”
But despite the doubt and criticism Creighton has chosen to remain optimistic and said,
“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,”
What do you think the future holds for Bitcoin Private? Do you see it as a money grabbing opportunity too?