Bitcoin Private (BTCP) price suddenly registered a spike of about 34 percent as it awaits the coinburn on February 16 at block height 480,000.
BTCP Up over 34%
At the time of writing, Bitcoin Private (BTCP) has been trading at $1.55. In the past 24-hours, while major cryptocurrencies are divided between red and greens, Bitcoin Private has shoot up by a whopping 34.22 percent and is today’s bigger gainer. In the BTC market as well, it is up by 34.44 percent.
BTCP 1-day price chart, Source: Coinmarketcap
As for the reason behind this price surge is its upcoming coinburn on February 16 that will lower the existing supply of Bitcoin Private coins in the market.
On February 28, 2018, there was a 1:1 snapshot at block height 272,991 for Zclassic (ZCL) and block height 511,346 for Bitcoin (BTC), where people who owned Bitcoin and ZClassic were given Bitcoin Private (BTCP).
According to the official announcement,
“Coinburn was suggested in the whitepaper as a possible solution in the event BTCP suffers from an extremely low network hash rate due to the low amount of mineable coins remaining after the fork. As originally conceived, approximately 0.14% of all unmoved coins from the fork would be removed daily over the course of two years, thereby decreasing the circulating supply and freeing up a significant portion of the coins for miners.”
It further talks about the illegitimate coins, CoinMetrics discovered in December last year amounting about 1.7 million that were stored in a shielded pool with only 20,000 being legitimate which the active contributors of BTCP found to be true.
In order to remove these coins, a hard fork at block height 455,500 was done on January 5. Now, on January 16th, a coinburn involving all unmoved coins will be performed at block height 480,000.
The blog cautions, “if you haven’t made a transaction since gaining your BTCP from the 1:1 snapshot that occurred on Feb. 28, 2018, please do it ASAP and certainly before block 480,000.” If you don’t do it by then, your BTCP will become unspendable as they will be burned away.
Meanwhile, the dev team is currently working at rebasing, according to the Medium blog, changing to Equihash 192,7 that will allow the network to be more ASIC-Resistant, and a GPU-friendly ecosystem is currently in the works as well along with adjusting the block reward values.