What Is Bitcoin Private and Why Is It Surging?
It has been a dramatic four days for bitcoin private (BTCP), the so-called meta cryptocurrency that forked from Zclassic last month. The new coin has outpaced just about every major cryptocurrency since the bull market resumed last week.
An Introduction to Bitcoin Private
A ‘fork of a fork of a fork’ is how some analysts in the blockchain community have described bitcoin private. The token came into circulation on Mar. 6 as a fork from ZClassic, which is itself a fork from the original bitcoin. Analysts describe BTCP as a “fork-merge” since it involves both bitcoin and ZClassic. (As a refresher, ZClassic is a hard fork of privacy coin ZCash that removed the 20% reward allocated to the founders. And finally, ZCash is essentially a fork of bitcoin.)
As an open-source, peer-to-peer coin, BTCP gives users the ability to send payments securely while obscuring either the sender, receiver or amount (or all three). Private addresses are supported by a protocol called Zero-Knowledge Succinct Non-Interactive Arguments of Knowledge, or zk-SNARKs for short.
In addition to zk-SNARKs technology, the developers behind BTCP retained Zclassic’s ASIC-resistant Equihask protocol, which essentially promotes a decentralized network.
In their whitepaper, the developers behind bitcoin private provided a side-by-side comparison of the new coin relative to bitcoin cash, bitcoin gold and the original BTC blockchain:
BTCP certainly won’t be the last fork of the bitcoin blockchain. Analysts are projecting some 50 splits this year after 19 spinoffs in 2017.
BTCP Price Levels
Bitcoin private rose by as much as 24% on Sunday to a new high of $27.96. Prices later consolidated at $26.61, having gained 17.8% over the past day. BTCP has gained nearly 50% over the past seven days. At this time last week, the coin was valued at around $14.
Over the course of the week, bitcoin private’s market cap has swelled to $561 million, putting it in 35th place by market capitalization.
Trading volumes amounted to $638,000 on Sunday, according to CoinMarketCap. Trading was limited to just a few platforms, including Trade Satoshi, Nanex, Octaex, Exrates and TradeOgre. Trade Satoshi accounted for nearly two-thirds of the daily turnover in BTCP, while Nanex represented nearly one-quarter.
There was no immediate catalyst for the coin’s dramatic surge in value, which suggests that it received a hefty pump on one or all of the aforementioned exchanges. It may have also benefited from the broad uptrend in the cryptocurrency market since last Wednesday. Over that period, coins have added roughly $85 billion in value, according to latest available data. The total market cap rose to $336 billion on Sunday, with bitcoin representing approximately 42% of the whole.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.