Bitcoin Private cryptocurrency guide advises where to buy and how to buy Bitcoin Private. This guide also contains the markets, value, trading, investing, buying, selling, transactions, blockchain, mining, technology, advantages, risks, history, legislation, regulation, security, payment, networks and many other interesting facts about Bitcoin Private as well its status in the world of cryptocurrencies.
Bitcoin Private, Monday, 2018-05-14
- 1 What Is Bitcoin Private?
- 2 Beginner's Guide to Bitcoin Private
- 3 Where and How to Buy Bitcoin Private?
- 4 Bitcoin Private Markets
- 5 Where to Spend or Use Bitcoin Private?
- 6 How Does Bitcoin Private Work?
- 7 Bitcoin Private Regulation
- 8 Is Bitcoin Private Secure?
- 9 History of Bitcoin Private
- 10 Bitcoin Private Videos and Tutorials
- 11 See Also
What Is Bitcoin Private?
Bitcoin Private is a low-fee, fast, and anonymous crypto network architectured with the primary goal of fulfilling the original aim of Satoshi Nakamoto. It is a fork-merge of Bitcoin and Zclassic. The resultant Bitcoin Private chain has lower transaction charges compared to Bitcoin, transaction speed approximately six times to those reported in Bitcoin, and higher scalability.
Many people have been fast to ask why Bitcoin Private especially now that forks appears to be the order of the day. When original Bitcoin was launched in 2009, the aim was to craft a digital transaction model that could completely eliminate all third parties and guarantee monetary freedom via anonymity. However, developments in Bitcoin brought about serious issues including small block size that brought about higher costs of transactions, long time adjusted difficulties and centralization of mining through ASIC mining devices. These are some of the things that Bitcoin Private seeks to address.
Will Bitcoin Private not be another fork like people have experienced? Forks are in many ways considered easy routes for new cryptocurrency developers who want to take advantage of the already existing cryptocurrencies communities. But the Bitcoin Private network insists that it is coming to address what other forks did not address or did not capture well.
- Bitcoin Cash fork helped to improve scalability by increasing the block size from 1mb to 8mb.
- Bitcoin Gold switched to Equihash from PoW that helped to reduce block time to only 2.5 minutes.
While these forks no doubt brought significant improvements, they still remain well behind Bitcoin. Notably, while Right to Privacy is considered the apex of the free world and a core component in Satoshi’s vision, many are those who are still stuck with using pseudonyms. Besides, huge investments especially through machine learning are being targeted at helping to unmask users associated with crypto transactions. For example, BitFury is capable of de-anonymizing about 15% of Bitcoin transactions. To address the huge outcry from the cryptocurrency community, a few MIT researchers launched the zero-knowledge non-interactive arguments of knowledge (zk-SNARKS) that has been taken by some cryptocurrencies.
In 2016, the founders of zk-SNARKS developed Zcash, the first cryptocurrency using the technology. Only eight days after the launch, Rhett Creighton forked Zcash to form Zclassic. However, Zclassic suffered hugely from the same ideas that that drew it to greatness; absence of founders that resulted in lack of active development. Rhett Creighton merged Zclassic with Bitcoin to craft what has been cited to have huge potential to take cryptocurrency to where Satoshi espoused it to be. Note that this objective will be carried forward by the development team after Rhett was ousted from the development team for suggesting another fork. Here are some of the core components of Bitcoin Private and a comparison with other forks of Bitcoin.
If you had Bitcoin or Zclassic at the point of the fork, you are entitled to one BTCP. This means 1BTC + 1ZCL = 2BTCP. Will Bitcoin Private weather the market as a fork at a time when people are developing cold feet about forks? Only time will tell.
Beginner's Guide to Bitcoin Private
When the reports of Bitcoin Private went around, a lot of people were wondering whether this was simply another fork. Forking Bitcoin appears to be the latest trend in the industry for developers who target to gain fast popularity. Well, it was a unique fork; a fork-merge of Bitcoin and Zclassic.
The new cryptocurrency was founded by Rhett Creighton, the same person who founded Zclassic (a fork of Zcash). The new Bitcoin Private was created on 28th February of 2018 and it is aimed at addressing issues such as high cost of transactions, low speed, scalability, and decentralized mining that had emerged as serious issues at Bitcoin.
While all indicators point to the great potential that Bitcoin Private brings, you need to appreciate the risks that come with most cryptocurrencies. Therefore, take a deeper look to have all the doubts and questions about BTCP cleared before investing, joining or even starting to mine it. This is why this guide was created.
The guide is a comprehensive review of the Bitcoin Private to establish its architecture, design, security, and how it works among other things. Welcome to the guide to discover more about Bitcoin Private and make your decision on whether it is the cryptocurrency you have been waiting for.
Where and How to Buy Bitcoin Private?
When people take a closer look at the Bitcoin Private, what comes out is a cryptocurrency that is better than Bitcoin in all aspects. From block size to mining difficulty adjustment and privacy, there is no doubt that Bitcoin Private has the potential to skyrocket in the coming months. Therefore, how can you buy Bitcoin Private? Here are the main places where you can buy Bitcoin Private.
- Cryptocurrency exchanges: Exchanges are the platforms that trade in cryptocurrencies. Some of the exchanges that trade BTCP include TradeOgre, HitBTC and Trade Satoshi. Note that buying from these exchanges requires users to open trading accounts and confirming them.
- Purchase from those who have them: If you can get people who already have Bitcoin Private, it is possible to make a direct purchase. The best places to get those with the crypto assets and intending to sell are cryptocurrency clubs. These are special groups that bring together cryptocurrency communities to facilitate the exchange of information and even sales. Some great clubs to consider include Bitcoin Subverse and CryptoCurrency Traders Club.
- Buy alternative cryptocurrencies and exchange them for BTCP: Note that most of the exchanges such as HitBtc and TradeOgre only allow cryptocurrency-to-cryptocurrency trading. Therefore, if you have cash or funds in a credit card, the purchase process has to start from another exchange to buy a different cryptocurrency such as Bitcoin or Bitcoin Cash. Then, exchange the coins for BTCP at the exchanges that list them. Some great examples of exchanges to commence at include CEX.io and Changelly.
Bitcoin Private Wallet
When you decide to buy, trade, hold, or get involved with Bitcoin Private in any way, one must have thing is a cryptocurrency wallet. This is a digital location used for storing your BTCP after successful mining or buyout. Note that though the definition indicates that this is a storage location, BTCP do not leave the native networks.
What the wallet stores are special codes that help identify your cryptocurrency coins in the network. These codes include the private keys and public keys. The wallet also stores the private seed that should be used to regenerate the private keys in case of a loss. Note that the private keys should never be shared, but the public keys can be given to those who intend to pay you in BTCP. By mid-April of 2018, there were two main wallets that supported Bitcoin Private.
- Bitcoin Private Electrum wallet (desktop walet)
- The Electrum wallet is one of the top options for cryptocurrency enthusiasts available for Windows, Mac, and Linux. To use the wallet, you need to start by downloading Electrum and installing on your computer. You also have to give the wallet a name and select the type of wallet to create. You can go for the Electrum Standard Wallet or the Electrum Multi-signature wallet (desktop wallet).
- Note that the wallet allows you to either generate new private keys or import the keys from the network if you are already a node in the Bitcoin Private network. Once you generate the private keys, public keys, and the seed, go ahead and direct all your coins there.
- Bitcoin Private GUI wallet
- Bitcoin Private GUI wallet is a great option that helps users to become part of the crypto network’s node. This means that you are part of the network and will be involved in consensus building. To use the wallet, you are required to download and install on your computer. You will also need to operate on the latest version to easily claim your BTCP and avoid attacks.
- Note that though the wallet allows users to import own addresses, it is important to avoid getting a watch-only address. This problem has been common with versions below Bitcoin Private GUI wallet 0.76. Besides, you should avoid using Bitcoin Private GUI wallet with applications that can modify ZEN wallet.dat file. Indeed, the wallet should not be used with PC having such applications.
- Coinomi (mobile wallet)
- Coinomi is one of the mobile cryptocurrencies wallets that are strongly focused on privacy. It is designed for Android platform though the developers have indicated that the version for the iOS will be released in the coming months. The good thing about Coinomi is that it allows users to store multiple cryptocurrencies. You can hold cryptocurrencies such as Bitcoins, Bitcoin Private, and others without needing to go through KYC (Know Your Customer procedures that are considered cumbersome).
- Initially, Coinomi used to operate as an open source software where anyone could review the codes. This meant that hidden codes and even malicious modules would easily be found. However, Coinomi development team shifted the project from open source to closed source.
- The primary reason for the fast growth of Coinomi is its focus on privacy. Once a Bitcoin Private holder decides to join Coinomi, the wallet does not collect personal information. Besides, it does not share any information about users or associated transactions with third parties such as government agencies. This makes it a perfect option for people who are looking to enjoy another layer of protection when using BTCP.
- To make it easier for BTCP traders, Coinomi partnered with the ShapeShipt, one of the fastest upcoming cryptocurrency exchanges. This makes changing different cryptocurrencies and trading them easy and prompt. However, BTCP will have to wait for longer to use this feature because it is not traded at ShapeShift.
Where to Buy Bitcoin Private with Credit Card?
Today, almost everybody has and uses credit cards. They are easy and direct to use because of acceptability in both conventional and online marketplaces. Now, it is also possible to buy some cryptocurrencies such as Bitcoin Private using credit cards. Note that most exchanges that are selling BTCP do not accept credit cards. Therefore, you might need to start at the platforms such as CEX.io and LocalBitcoins.com where credit cards are accepted to buy alternative coins such as Bitcoins. Then exchange the alternative coins for BTCP.
Where to Buy Bitcoin Private with PayPal?
Like credit cards, PayPal has gained a lot of acceptance, especially in online payments. However, it is yet to make inroads with cryptocurrency networks. Indeed, people who tried to make payment to cryptocurrency networks were penalized because PayPal saw these networks as direct competitors. However, PayPal administration has indicated it is in the process of facilitating direct payments so that those who want to buy cryptos such as Bitcoin Private can do it directly. Until such a time, buying Bitcoin Private from PayPal can only be possible by following the longer road of offloading to a bank account or credit cards.
How to Buy Bitcoin Private with Wire Transfer?
One of the most trusted things in the globe are banks. Their scrutiny and focus on clarifying every detail during transactions have made people come to trust them so much. Now, even though cryptocurrency networks are created to help bypass centralized institutions such as banks, they still allow for direct payments. Here is the process of buying Bitcoin Private with a wire transfer.
- Start by acquiring an appropriate cryptocurrency wallet.
- Choose a trading exchange that allows traders to make payment with a wire transfer. As a new cryptocurrency in the market, it is yet to find its way into almost exchanges that accept direct payments. This means that you will need to start at the exchanges that allow traders to use wire transfers. Great examples include CEX.io and Coinbase.
- In the selected exchange dashboard, navigate to the section for buying digital assets and select the alternative cryptocurrency. It is advisable to pick a top crypto such as Bitcoin, Bitcoin Cash, or Ethereum. When the transaction is finally over, you will need to exchange the alternative crypto in another exchange that lists Bitcoin Private such as Trade Satoshi.
- After selecting the cryptocurrency of choice, select pay with a wire transfer, add bank details and complete the transaction. The purchase process will enter into the pending model until the cash hits the exchange accounts. Note that the cryptocurrency coins you have selected will go to the trading account. This means that you will need to move them to your wallet.
Where to Sell and Trade Bitcoin Private?
What is the best way to optimize profitability when working with cryptocurrencies such as Bitcoin Private? While you can buy and hold the coins waiting for the value to grow, many are those who prefer trading them regularly in the markets. If you want to trade and sell Bitcoin Private, you can only do it in the exchanges that list the coins. Some of these exchanges include Nanex and Octaex.
When selecting the exchanges, it is important to appreciate that they are an easy target for hackers. The bulk of the hackings reported in the cryptocurrency industry happened in the exchanges. Therefore, how do you identify a great cryptocurrency exchange?
- Look for the exchanges that have a comprehensive focus on user's security. Some features to look for include two-factor authentication, and moving the assets to cold storage.
- Select the exchanges that allow users to move their Bitcoin Private to individual wallets after a successful purchase.
- The ideal exchange should have a good reputation in the cryptocurrency community. If others have a good feedback about the cryptocurrency, you can also expect to enjoy similar great experience.
- The trading platform should have low transaction fee to help you retain the bulk of the profits from trading BTCP.
How Much Are the Transaction Fees of Bitcoin Private?
When cryptocurrencies are created, one of the main aims is to help lower the cost of transactions. This is achieved through bypassing centralized and profit-seeking organizations such as banks. Though Bitcoin Private does not openly indicate the cost of sending transactions, the fee is expected to be lower than what Bitcoin charges because of bigger block size.
Bitcoin Private Markets
1) Trade Satoshi
This is a cryptocurrency exchange that was started in 2015. It lists more than 100 cryptocurrencies that can be traded against top cryptocurrencies such as Bitcoins, Dogecoin, Dash, Zcash, Litecoin, and Bitcoin Cash. This implies that BTCP traders will never miss a profitable option to jump to when working on the platform.
The cryptocurrency exchange provides BTCP with some level of anonymity by allowing users to register with pseudonyms. However, you need to provide the right email for verification. Besides, the exchange has a very simple user interface that allows users to operate like pros only a short moment after joining the platform.
Though Trade Satoshi claims to charge its users 0.3% of the traded volume, many traders on it have been indicating that they are getting charged more. Besides, its support has been very poor with many users complaining that their inquiries took very long before getting replied.
This is a crypto-to-crypto trading platform. The main selling point of the exchange is its low transaction fee. To trade in the platform, 0.2% fee is charged for both markers and takers. This is considered to be on the higher end when compared to other exchanges such as Binance that are pulling their fees to as low as 0.05%.
TradeOgre does not shy from being the first to list new cryptocurrencies and other assets. This means that traders in the platform are sure of being the first to pick new opportunities especially those that arise from new forks and tokens. However, this can also be very risky because many new assets especially those formed through forks can easily turn out to be Ponzi schemes.
The main issues to expect when trading Bitcoin Private at TradeOgre include the charges levied for withdrawing from funds from the platform. Many are the exchanges that only charge transaction fees and allow users to move their coins at no extra charges. The interface is also not intuitive, does not talk about its commitment to security, and it only allows trading using cryptocurrencies.
Octaex, also referred as Octa Bit Exchange, is among the relatively new cryptocurrency exchanges that are fast gaining a lot of popularity. It was started in January of 2018 in China and targets to draw more traders with its low transaction fees. Both takers and makers are charged a transaction fee of 0.15% which is considered relatively low compared to others such as TradeOgre that charges 0.2%.
The exchange is preferred by new traders because it lists Bitcoin and a lot of altcoins including Bitcoin Private. If you are new to cryptocurrencies or have cash that you want to purchase Bitcoin Private, Octaex is the place to go because it supports fiat currency.
To keep traders assets safe, the exchange moves them to cold storage and employs two-factor authentication. These efforts have helped to lower the risk of successful attacks and giving users assurance that their Bitcoin Private and other assets cannot easily be drained away by hackers.
Though the exchange appears a great option for traders, it is not without some demerits. There is limited information about the trading company. Though this method could have been taken to cover the company from Chinese authorities, many people feel uneasy about joining an exchange platform they cannot fully know about. Besides, the platform has very high fees on withdrawals and does not feature leverage trading.
HitBTC was designed to enhance the efficiency and reliability of users in the crypto markets. The exchange is preferred because it lists a lot of cryptocurrencies for traders. This implies that you will always have an option to pair with BTCP if the current trading pair is less desirable. Besides, the exchange has a very low transaction fee of only 0.1%. This implies that traders can keep the bulk of the profits they make on the platform.
The biggest challenge of using HitBTC is its hacking history. In 2015, the cryptocurrency exchange was hacked and a lot of cryptocurrencies lost. Even though the management of the exchange has worked very hard to address the issue, it is a major repelling factor as many traders opt for platforms with no hacking history.
Value of Bitcoin Private
Though Bitcoin Private is the latest cryptocurrency to enter the market, its performance has been remarkable. By the close of April, BTCP was only about 2 months old but it has shot to position 34 on the Coinmarket list of all cryptocurrencies. In end of April 2018, the market cap of Bitcoin Private had grown to more than $1 billion at a price above $50. This placed it well ahead of other older altcoins including DigixDAO, Dogecoin, and Golem. In next few weeks till mid-May, the market cap and value of BTCP were decreased to half what they used to be in April.
Is It Profitable to Invest in Bitcoin Private?
When Bitcoin Private is marketed as a better option compared to Bitcoin, the expectation is that even the value will continue growing in the market. Despite the high expectations, the price of the cryptocurrency has not been performing very well. Early in March, BTCP price was about $65 before taking a downward trend that saw it drop to only $12 early in April. However, the price started growing again with the price taking an upward shift to reach $50 by April 22nd. Here are more indicators that are making the cryptocurrency community believe that the BTCP will continue being a profitable venture.
- The community around BTCP has been growing rapidly.
- Experts are in agreement that BTCP has a very strong architecture.
- The anonymity features of the cryptocurrency place it well ahead of very many cryptos.
- The cryptocurrency is riding on the trails of Bitcoin.
Where to Spend or Use Bitcoin Private?
One way of establishing the acceptability of cryptocurrencies is checking the number of stores that accept them. To date, no store has come out to indicate it accepts direct payment in BTCP. If BTCP expects to continue growing at the same rate exhibited by Bitcoin, it must work extra hard to make both conventional and online marketplaces accept it for direct payments. Note that saying BTCP is not directly accepted for payment does not mean that you cannot buy from a shop with a Bitcoin or Ethereum label. Simply convert BTCP to the accepted cryptocurrencies.
Can Bitcoin Private Grow to Become a Major Payment Network?
Yes, Bitcoin Private can become a major payment network. The target of every cryptocurrency out there is to become a leading payment network. However, this is not a simple task for new networks because of the already established networks. Here are some indicators that Bitcoin Private can grow into a major payment network.
- Sending transactions on the Bitcoin Private network is cheaper than other top cryptocurrency options including Bitcoin Cash, Bitcoin, and Ethereum among others.
- The transactions are completed very fast compared to those in the Bitcoin network. This is made possible by a bigger block size of 2mb compared to 1mb of Bitcoin.
- Users and traders are able to complete their transactions anonymously. This will make more people opt for Bitcoin Private especially when they want to make transactions that are fully private.
While the indicators point to the huge potential that Bitcoin Private has in becoming a major payment network, it is important to appreciate the issues that lay on the way. For example, the looming regulations, threats of attacks, and newer cryptocurrencies can easily work against BTCP becoming a major payment network.
How Does Bitcoin Private Work?
The primary design of Bitcoin Private is aimed at helping users send value on a peer-2-peer basis. This means that people in the network can send value in form of BTCP directly without involving third parties such as banks. This process can be broken into three to demonstrate how Bitcoin Private works;
- Users who initiate the transactions: To use the Bitcoin Private network, you are required to join it and own some BTCP. You can acquire the native coins through mining or buying from the exchanges. Then, you must also have a supported wallet. When you initiate a transaction, the details are encrypted to keep personal info and details of the transaction as private as possible.
- The miners who confirm the transactions: Nodes spread in the Bitcoin Private network take up transactions from users sending value to confirm whether there are ample BTCP in the senders’ account. The nodes that help to confirm transactions have to solve complex puzzles generated by the Bitcoin Private system.
- The public ledger: Once the transactions are confirmed, they are added to the Bitcoin Private public ledger. At this point, the transactions become permanent and cannot be reversed. This means that if you sent the funds to the wrong address, they cannot be reversed.
Does Bitcoin Private Use Blockchain Technology?
Yes, Bitcoin private uses blockchain technology. It operates as a new blockchain forking from block 511,346 for the Bitcoin and 272,991 for the Zclassic. It is as a public ledger with all transactions that have been confirmed by miners. The Bitcoin Private blockchain is used to help manage the native asset in a decentralized manner. Using Proof-of-Work algorithm, the Bitcoin Private network has a lot of nodes spread across the globe. The nodes and users form the community that owns the Bitcoin Private system.
Transactions in the network are combined together in block sizes of 2mb and added to the Bitcoin Private public ledger in a chronological order every 2.5 minutes. These, coupled with a relatively bigger block size have helped to raise the speed of transactions and address scalability issues.
As a fully community-driven blockchain network, Bitcoin Private relies on consensus to address issues that arise in the system. This implies that all the nodes in the system are called to vote on contentious issues. With the primary focus of Bitcoin Private being to improve the Bitcoin blockchain, there is no doubt that this objective has been met. Now, users can only wait to see whether BTCP will grow to outdo BTC.
Mining Bitcoin Private
Mining is the process of confirming transactions in cryptocurrency networks for a reward. Bitcoin Private uses Equihash PoW algorithm that adjusts mining difficulty with every block. Unlike the SHA256 PoW algorithm used at Bitcoin, Bitcoin Private’s Equihash algorithm is ASIC resistant. This was aimed at helping to decentralize mining and reduce 51% attack. The mining algorithm has also helped to take the cryptocurrency to more people including those who cannot afford the expensive ASIC equipment needed to mine Bitcoin.
- Mine Bitcoin Private using GPU (Graphics Processing Unit)
- To mine Bitcoin Private network, you can opt to use the standard CPU (Central Processing Unit). However, the hashing power generated by CPUs is very small and it is not profitable. The better option is going for GPU mining. Consider using some great GPUs such as NVIDIA or AMD. Note that GPU mining will also require you to have the latest GPU drivers. Besides, you need to have appropriate mining software such as EWBF’s CUDA Miner or Claymore’s ZCash miner. Note that a developer fee might be charged when you use the mining software.
- Join BTCP mining pool
- To increase the chances of confirming even more transactions, it is advisable to join a mining pool. These are special groups that help to pool the hashing power of members to raise the chances of confirming transactions. Note that the mined BTCPs are divided among the members of the pools. Some of the pools you should consider joining include BTCPrivate.pro, Son of a Tech, and WFMPools.
What Are the Advantages of Bitcoin Private?
When cryptocurrencies were founded in 2009, the primary goal was to help users operate in total anonymity. While Bitcoin did enough to help users operate in a completely decentralized manner, it is the new cryptocurrencies such as Bitcoin Private that are helping to take the focus to the next level. Here are some of the main advantages to anticipate when you join Bitcoin Private.
- The cryptocurrency allows users to make their transactions in total privacy.
- Bitcoin Private allows users to complete transactions faster compared to Bitcoin.
- It is a great way to trade and operate without worrying about third-party seizures.
- Bitcoin Private, like other cryptocurrencies, allows people to use and own the network.
- The Bitcoin Private is a cheap way to send value across the globe fast.
- Bitcoin Private is seen as a better option compared to Bitcoin. This has made its price to continue growing and raise the chances of generating high ROI.
- Because Bitcoin Private employs Equihash PoW algorithm, it is ASIC resistant. This makes it easy for more people to get involved with mining and consensus building.
What Are the Risks of Bitcoin Private?
Just like the Bitcoin Private comes with a lot of advantages, it also has a number of risks that you need to know. Here are some of them.
- The danger of more advanced cryptocurrencies entering the market.
- The threat from the looming regulations.
- The risk of getting attacked at the network, wallet, or even exchange levels.
- The Bitcoin Private is relatively new. This means that most of its features will need some time for their stability to get ascertained.
- Though some people have hailed the merger between Bitcoin and Zclassic forks as a great thing, there are others who feel that the problem that plagued Zclassic might come to haunt the new crypto.
What Happens if Bitcoin Private Gets Lost?
Reports of people losing their cryptocurrencies have become way too common. In most of the cases, these losses take place at the exchanges. Early in the year 2018, a cryptocurrency called Coincheck was attacked and about $ 530 worth of crypto assets lost. In December of 2017, another cryptocurrency exchange in South Korea was hacked and millions worth of crypto assets lost. The exchange was forced to file for bankruptcy.
While the risk of losing crypto assets looms, it is important to appreciate what exactly happens when such losses occur. To understand the losses, here is a closer look at different scenarios.
- Loss through hacking or sending to wrong address: In such a situation, the BTCP will still be in the network, but under a different name. Such shifts are considered as confirmed transactions and, therefore, cannot be reversed.
- Loss through damage to the cryptocurrency wallets: If your Bitcoin Private wallet gets lost or damaged, the BTCP will also be lost. However, this loss is different from that that happens through hacking. A damage to the wallet means that the coins are still under your address in the network but in a dormant state.
- Forgetting the private keys: If you forget the private keys, it means that your coins cannot be called to live. They are in a dormant state until the right public keys are generated.
Bitcoin Private Regulation
The subject of regulating cryptocurrencies such as Bitcoin Private and Ethereum among others has become a top agenda for most administrations. Most governments feel threatened by the fast rise of cryptocurrencies in the market today. The administrations indicate that the cryptocurrencies rise is compromising the ability to collect taxes and control inflation. Some countries such as China point that cryptocurrencies are going against the commitment to stem capital outflows.
While some nations did not take note when Bitcoin was created in 2009, the United States was first to point that the new types of currencies could easily be used as platforms for raising funds by criminals. About ten years down the line, in 2018, the federal administration had not passed a legal framework to guide cryptocurrencies. But the United States is not alone. Other nations such as China, the EU, and Canada had also not passed legal frameworks. Even those that have some sort of legal arrangements such as Venezuela only use executive orders to ban cryptocurrencies or part of their applications. Here are some of the major challenges that most administrations face when trying to craft legal frameworks.
- Cryptocurrencies are global networks owned by users spread in the system across the globe and not a single party/ person.
- Most cryptocurrencies such as Bitcoin Private use blockchain technologies that are helping to solve a lot of problems that institutions have faced over the years.
- The topic of cryptocurrency regulation is slowly molting into a political discussion. Governments that are focused on crafting harsh regulations are considered to go against the people because the blockchain technologies have helped to pull down especially cost associated with sending value.
- Cryptocurrencies regulation cannot have a lot of impacts when only implemented at the local level. Now, taking a global approach like the one the United States and the EU are pushing is never easy.
If you are looking forward to investing in Bitcoin Private or had already joined the network, it is important to appreciate the governments' resolve to pass related regulations. This implies that sooner or later, these regulations will start dawning. For example, Russia has already crafted a draft bill to regulate cryptocurrency operations. Therefore, be ready for the aftershocks that could arise from using, mining, trading, and holding Bitcoin Private. To know the legal status of Bitcoin Private in individual jurisdictions, the next section is a closer look at each of them.
Is Bitcoin Private Legal?
To understand the state of cryptocurrency regulations, here is a closer look at the legal status of Bitcoin Private in different countries. At this point, it is important to appreciate that most jurisdictions are at the early stages of coming up with draft laws or setting teams to look at the laws.
- Russia is one jurisdiction that put a brave face in crafting legal frameworks to guide Bitcoin Private and other cryptocurrencies. Before 2018, Russia had only indicated that cryptocurrencies were not legal tenders and any associated trading would attract tax like other ventures. However, the stance shifted early in 2018 when the Finance Ministry indicated that it was impossible to tell whether traders who accept payment in cryptocurrencies were committing offenses.
- To address the legal loophole, the Finance Ministry and the central bank came up with the Digital Financial Assets Bill that takes a closer look at every aspect of cryptocurrencies. Under the Digital Financial Assets bill, digital assets include tokens and cryptocurrencies. However, it goes ahead to differentiate the two by indicating that cryptocurrencies are generated through mining while tokens are mainly issued by legal entities or individual investors to raise funds. The bill also indicates that both tokens and cryptocurrencies such as BTCP are properties. This means that cryptocurrencies are not trivial-solutions, like the way they have been referred in other countries.
- Mining is considered as a means of producing goods; in this case, it involves cryptocurrencies. With this consideration, the bill proposes to require all miners to create private companies or register as entrepreneurs in Russia. If the bill becomes law, it means that mining will become very risky undertaking if you are not authorized.
- The bill further defines cryptocurrency trading by setting out more stringent measures for exchanges involved in the business. Here, the target is protecting the traders to ensure their investments are not at risk of getting lost. By focusing on getting more information at the exchange level, it means that the Russian administration will be able to easily narrow down to traders who avoid paying taxes.
- The United States
- Unlike Russia that has taken a localized approach to crafting cryptocurrency related laws, the United States has opted for a global approach. The US administration targets working with countries that have a lot of influence in the cryptocurrency niche especially Japan, South Korea, China, Singapore, and the EU. This method is aimed at helping to attack the problem from a global perspective.
- Crypto experts indicate that the United States has a lot to benefit from the fast growth of cryptocurrencies. This is part of the reason why it has been lax to come-up with a cryptocurrency regulation. The only clarification given by the US government on cryptocurrencies such as Bitcoin Private is that they are properties. This implies that if you make any gains for trading or holding them, you are required to pay taxes.
- Because there is no law to guide use and application of cryptocurrencies, each state is left to treat cryptocurrencies the way it targets. One state that has went head and come-up with a crypto arrangement is Arizona. On April 23rd of 2018, Arizona House of Representatives passed bill SB 1091 that allows Arizona residents to pay their taxes in cryptocurrencies such as Bitcoins and Bitcoin Private. Once a person pays taxes in cryptocurrencies, they are converted to USD immediately and credited in his tax account. This first move is being seen by experts as a bold move that will help governments assess how they can use blockchain technologies to their advantage.
- China is one country that has had no kind words to cryptocurrencies. The Chinese administration has been extra critical to cryptocurrencies because they go against its focus on stemming cash outflow and compromising its ability to collect taxes. It has been hitting hard on everything crypto trying to tame their fast growth. The country started with banning ICOs, restricting the operations of crypto exchanges, and freezing trading platforms bank accounts.
- Initially, the country was mainly interested in preventing local cryptocurrency trading. Now, it is targeting to block even other trading platforms locating outside the country from accessing the markets. Though Bitcoin Private is still legal in China, the administration is reported to be working on banning anonymous cryptocurrencies. If such a policy is passed, it would be a big blow to cryptocurrencies such as Bitcoin Private that are mainly hinged on enhancing privacy.
- As more countries come out to indicate the threat they are facing from the fast proliferation of cryptocurrencies, Switzerland administration sees it differently. The country's administration believes that blockchain technologies present the solutions that both businesses and governments have been waiting for.
- The Switzerland economics ministry set up a working group to help to craft regulations to assist start-up companies to run ICOs successfully. The administration is positioning itself to become a crypto nation. By supporting the local ICO market and supporting cryptographic solutions, the country's administration believes it has a better opportunity to raise funds for projects, solve problems, and achieve faster growth.
Other countries that have made some remarkable efforts in crafting legal frameworks include Austria, Canada, and Australia. Note that most jurisdictions such as the EU, South Korea, and Japan have taken a precautionary approach to avoid suppressing the fast-growing fintech niche.
Bitcoin Private and Taxes
When the OECD members passed the Common Reporting Standards (CRS) in 2014, it became apparent that people who preferred to stash funds in tax havens had nowhere to hide. The CRS framework provided for Automatic Exchange of Financial Information (AEOI) that required countries to exchange financial information of foreign accounts. However, people who want to live without paying taxes have now turned to private cryptocurrencies such as Bitcoin Private.
Because of the high level of anonymity, there is a unique sense of cover that makes people feel they cannot be reached by authorities. However, it is this consideration of hiding from paying taxes that is driving governments to focus on passing very harsh regulations. In the United States, only a handful of the hundreds of thousands of people in cryptocurrencies niche capture the details when filing their annual returns.
Every country appears focused on going to any length to ensure that everyone pays taxes. From the EU to the US, the resolve is to use every possible effort to make everyone pay taxes in line with the law.
Notably, tax experts have a different view compared to those who believe they can live tax-free when using BTCP. They argue that though Bitcoin Private and other cryptocurrencies are anonymous, the status could change in the coming months or years when new technologies are discovered. When such a moment finally comes, the chances are that a lot of lawsuits could be instituted against you. This leaves one primary question; can one enjoy all the benefits of being in Bitcoin Private without breaking tax related laws.
- Make sure that income generated through BTCP trading is considered taxable revenue.
- Ensure to capture the transactions’ details when filing the annual returns.
- Make sure to note the value of BTCP and corresponding fiat when the transaction takes place.
- If your store accepts payment in BTCP, make sure to engage a tax expert to get the books of accounts right.
Does Bitcoin Private Have a Consumer Protection?
Bitcoin Private does not have consumer protection. Bitcoin Private, like Bitcoin or Bitcoin Cash among other cryptocurrencies, are owned by users spread in the network. This implies that when you join the network, you are on your own. When something such as loss of tokens happens, there is nowhere to go and complain. Note that you cannot even go to a court of law because cryptocurrencies are not regulated. To increase your level of protection when working on the Bitcoin Private network, here is what you need to do.
- Make sure you are always running on the latest version of the Bitcoin Private client and wallet.
- Make sure that the computer used for Bitcoin Private transactions is properly protected with the right antivirus and firewalls.
- Never share the private keys with anyone.
- Always triple check the public address when sending value.
- Select the cryptocurrency exchanges with great care.
- Move the BTCP to your wallet immediately after completing trading at the exchanges.
- If possible, try to always store your BTCP in cold storage.
Illegal Activities with Bitcoin Private
Anonymous cryptocurrencies such as Bitcoin Private and Zcash are considered special attraction to criminals because of the cover. Criminals prefer them because they help to shadow them from third parties such as government agencies. Despite this attractiveness, no illegal activity had been reported with Bitcoin Private by close of April 2018.
Is Bitcoin Private Secure?
Bitcoin Private is a secure cryptocurrency. For most people getting into cryptocurrencies, the security of their information and assets is of great concerns. As the Bitcoin Private development team worked on enhancing privacy, they also worked on taking security to the next level. Here are some of the methods used to keep the network secure.
- By employing the equihash PoW algorithm, the enhanced democratization of the blockchain helps to reduce the risk of 51% attack.
- Protection from replay attacks. This is a type of attack evident in most forks where original blockchain gets valid on the new blockchain. To protect Bitcoin Private from replay attacks, Bitcoin Protection employs 2-way replay protection.
Is Bitcoin Private Anonymous?
Yes, Bitcoin Private is an anonymous cryptocurrency. Enhancing privacy was the primary goal of merging Bitcoin and Zclassic fork to form Bitcoin Private. Bitcoin Private employs the ground breaking technology known as Zero-knowledge non-interactive arguments knowledge (zk-SNARKs) that has demonstrated the capacity to make all transactions completely anonymous. This technology has seen Bitcoin Private get categorized with other top anonymous cryptocurrencies such as Monero and Zcash.
Has Bitcoin Private Ever Been Hacked?
Bitcoin Private does not have a hacking history since its launching at the close of February of 2018. This is used as an indication that the cryptocurrency code is very strong and the development team committed to keeping it as secure as possible. Note that this does not imply that the cryptocurrency is not targeted by hackers. Like other cryptocurrencies, there are very many hacking attempts but none of them has been successful.
How Can I Restore Bitcoin Private?
After working so hard to mine Bitcoin Private or buying from the exchanges, it can be devastating to wake up one morning and find that they have all been siphoned. Note that in most of the cases, the loss is permanent and cannot be undone. However, there are some situations when Bitcoin Private can be restored.
- Loss through forgetting the private keys: If you forget the private keys, it means that the BTCP coins are lost. To restore the coins, you need to regenerate the private keys. This can be done using the private seed phrase that was generated by the preferred wallet you first used it.
- Loss through damage to the Bitcoin Private wallet: The Bitcoin Private wallets can be damaged through damage to the computer, loss of the computer, malicious attack, or even formatting the main drive. To restore the wallet in such a case, you need to use the backup wallet. You can also install a new wallet and import the private keys used in the previous wallet.
NOTE: If you lost BTCP through hacking or sending to the wrong address, there is no method that can be used to restore them. They are lost forever.
Why Do People Trust Bitcoin Private?
When cryptocurrencies debuted in 2009, the main focus was to create reliable, cheaper, and anonymous systems of sending value. About 10 years down the line, in 2018, the focus still remains but with a lot of emphasis on winning trust. Bitcoin Private has won a lot of trust from the community though it was launched in 2018. This is very different when compared to other highly criticized cryptocurrencies such as Bitcoin Diamond. Here are some of the top reasons why people are having a lot of trust in Bitcoin Private.
- The cryptocurrency is truly community driven.
- Bitcoin Private is, in reality, better than Bitcoin in so many aspects including anonymity and block size.
- The reception of BTCP has been very positive in the market. This is being considered an indicator of bigger things to come.
- The lead team has been in the cryptocurrency market for a long time and is helping to inspire confidence.
- The cryptocurrency, like Bitcoin, focuses on a small area of operation; sending value. This means that it is relatively easy to implement and improve compared to others that have very complex architecture. For example, Qtum and VeChain operate as complete ecosystems that target bringing together multiple blockchain networks or facilitating cohesion.
History of Bitcoin Private
Though the history of Bitcoin Private is short because the cryptocurrency started at the height of block 511,346 on Bitcoin and 272,991 on Zclassic, the three networks’ past is intertwined. Here are some important marks in history that need to be captured when flashing back about Bitcoin Private.
- In 2008, Bitcoin.org was registered and the white paper released. The open source code was released later 2009.
- Between 2011 and 2013, major scandals and hackings related to Bitcoin were reported especially in exchanges. These included the hacking of MT. Gox, the Silk Road Scandal and acceptance by some organizations such as Wikileaks.
- In 2016, Zclassic was founded through forking Zcash a few days after launching.
- On 28th February of 2018, the Bitcoin fork from block 511,346 and Zclassic from block 272,991 were merged to form Bitcoin Private. The price of BTCP shot to the highest point of $85 before taking a downward in the subsequent days.
Who Created Bitcoin Private?
Bitcoin Private was proposed and founded by Zclassic founder, Rhett Creighton. However, other important personalities also joined to help craft the cryptocurrency and author the white paper. These personalities include Rhett Creighton (lead developer), Jacob Brutman (operations lead), Giuseppe Stuto (marketing and strategy), Dan Farina (full stake developer), Jon Layton (lead wallet developer) and Chris Sulmore (Senior wallet developer).
On 29th April 2018, Rhett Creighton was removed from the development team of Bitcoin Private for suggesting that another fork, Bitcoin Prime based on Primecoin technology was possible. The single tweet sent the price of Zclassic through the roof (150%). The uproar that caught the attention of the development team after the community immediately attacked Rhett Creighton accusing him of being a scammer, and irresponsible.
As a community-driven project, the Bitcoin Private development is open to new contributors. By mid-April of 2018, only one and half months after launch, there were more than 70 contributors and engineers who had joined the initiative.
Bitcoin Private Videos and Tutorials
Bitcoin Private - Community and ZK-snarks Combine
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