Bitcoin Private Fork Strategies

mjo(46)

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Bitcoin Private fork - February 28th

Hey all! The Bitcoin Private fork is scheduled for February 28th. Check out the project whitepaper here. The way the fork will work is Bitcoin and ZClassic holders will get a 1:1 payout in Bitcoin Private if their BTC/ZCL are held in a wallet or a supported exchange. I've been reviewing what strategies people are using to try and best position for this fork. Here are a couple schools of thought.

Option 1: Stock up on ZCL and hold until fork

An interesting dynamic of this fork is the fact that 2 very differently priced cryptos both fork at a rate of 1:1. This means with the current BTC price of $11,858 and the current ZCL price of $176, it's advantageous to stock up on ZCL if you want to receive the maximum amount of Bitcoin Private. For reference, you could buy 1 BTC and get 1 Bitcoin Private... or you could spend the same amount of fiat for approximately 67 ZCL and get 67 Bitcoin Private.
If you take this path, you'll want to try to sell your ZCL as soon as you can confirm that the fork took place and you will have your Bitcoin Private. The reason being that ZCL as a standalone coin might drop significantly (possibly even die) once Bitcoin Private is out.

Option 2: Grab ZCL and sell before the fork

For those who don't have any interest in acquiring Bitcoin Private, there seems to be an opportunity to try and get a decent gain simply by purchasing the ZCL now and selling close to the February 28th fork when the price is likely to max out. The assumption is as more people learn about Bitcoin Private, they'll purchase ZCL for the cheapest route into forked Bitcoin Private. This will drive up the price of ZCL further and you can simply sell your ZCL for a profit (not a financial adviser).
If you happen to have some interest in Bitcoin Private, but you're skeptical of the valuation after the fork holding, you may also want to take this route and then create a buy order for Bitcoin Private after the dust has settled and it has become stable (at least as stable as crypto gets).

My Strategy

Here's what I'm planning on doing. I love privacy coins, so I'm skeptically interested in Bitcoin Private. That being said, if I can take guaranteed profits that's hard to pass up. With that in mind, I bought a very conservative amount of ZCL tokens and am keeping them in my Cryptopia account as we approach the fork. If by the 27th I feel the value of those ZCL tokens has gone up significantly enough I'm going to take the gains and simply keep an eye on Bitcoin private. I may then purchase into Bitcoin Private later.

However, if the valuation of ZCL is close to the same or even lower than what I bought in at, I'm going to transfer my ZCL to a supported wallet and participate on the fork and collect my Bitcoin Private. I think there is viability in both of the above approaches and I think it's safest to choose dynamically between the 2 near the fork date. There are 8 days left until the fork so I'm fashionably late to this party, but we all know cryptos can make huge moves in that time. I'd love to hear what others are doing about this fork. Is anybody else buying ZCL? If so, do you think you're more likely to sell off the ZCL or hold for the fork? What thoughts do you have on Bitcoin Private in general?

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