It's been 13 years since the first cryptocurrency was founded. Bitcoin has remained the most popular and most valuable cryptocurrency since its inception. It has made several people rich. Those who invested early and allowed their investment to grow all made a lot of money.
Though Bitcoin remains the most popular cryptocurrency, there are several other ones that are doing pretty well. ZCash is one of the altcoins that are also making waves in the market, and many people see it as a good investment option.
Since you are here, we will assume that you are considering ZCash for long-term investment and want the most reliable information you can get about the coin. That is a smart thing to do, and we will help to make sure you know the cryptocurrency better and make the right decision for your investment portfolio.
To provide an unbiased answer to the primary question here, we have so many things to consider. When also believe that it is best for traders and investors, regardless of their experience level, to make investment decisions on their own. Because of that, we will provide you with everything you need to understand whether ZCash is a good investment option and whether it is the right asset for you.
It is important that you read every aspect of this post carefully, as every sentence can help shape your decision in the end.
- What Is ZCash?
- A Brief History of ZCash and How It is Different
- Is ZCash A Good Investment?
- ZCash Price History
- Recent Performance and Current Position of ZCash
- ZCash Price Predictions
- Where Will ZCash Be In the Next Ten Years?
- Top Reasons to Invest In ZCash
- Why You Should Think Twice Before Investing In ZCash
- Should You Play The Long-Term Game With ZCash?
- Investing In ZCash? Do It the Smart Way
What Is ZCash?
ZCash is a cryptocurrency that has enhanced privacy as its most important policy. It was created as a payment service based on a decentralized public blockchain that can complete transactions without revealing such important details of the transaction as the sender, recipient, and the value of the transaction.
ZCash is similar to Bitcoin in many ways – the most important difference between the two is the fact that ZCash is focused on anonymity and privacy. Again, it is not as popular or as valuable as Bitcoin, but it has earned respect in the cryptocurrency universe and has several fans.
To understand ZCash properly, you need to appreciate it as four separate things that are interconnected to function as an anonymity-based payment solution. The separate but dependent entities include:
Electric Coin Company
Electric Coin Company is the company that invested ZCash. Simply called ECC, the company is involved in creating and supporting technology that provides easy access to a fair and open currency for everyone, regardless of their demographics or locations.
ECC was formed in 2015 and had other projects besides ZCash. It has earned a reputation for professionalism, top-notch engineering, and world-class cryptography. It is also known for adhering to set standards in the creation and launching of products.
The ZCash foundation is the entity that is directly behind ZCash. It is a non-profit organization that focuses on the funding of the ZCash project. The foundation is funded by stakeholders whose primary focus is sponsoring privacy infrastructure for the good of the network and the entire public.
The ZCash Network
The ZCash network is the digital payment network that facilitates anonymity and privacy-focused transactions involving the ZCash coins. It is a decentralized network that runs on blockchain technology. This implies that it works without the interference of intermediaries like banks and other financial institutions.
ZEC is the native currency of the ZCash network. It is the digital currency that works on the ZCash network. Like other cryptocurrencies, it is treated as a digital asset. If you are investing in ZCash as a trader or a regular investor, then ZEC is what you want to be concerned about. While the activities of the other three entities affect ZEC, the price of the coin is the major thing investors have to be concerned about.
A Brief History of ZCash And How It Is Different
To truly appreciate ZCash and what it brings to the cryptocurrency market, we need to go back a little to discuss its history briefly.
The ZCash project actually started in 2013 when Bitcoin was already a household name, and a few other cryptocurrencies were making waves too. The founder, Zooko Wilcox-O’Hearn, wanted to create an open, decentralized payment system that will provide improved security and privacy than existing platforms.
The founders of ZCash wanted it to be as similar as possible to Bitcoin. They succeeded in making a digital coin that is structurally similar to Bitcoin but better in terms of privacy. While Bitcoin has always been anonymous, users need to provide public addresses that can be traced in the long run. ZCash sought to eliminate this.
To bring in long-term anonymity to their network and its native coin, ZCash introduced what is known as zk-SNARKs or Zero-Knowledge Proofs. Basically, this is a cryptographic protocol that eliminates the need for users to provide public addresses while transacting on the platform. The protocol supposedly makes every transaction on the blockchain are not traceable by any means.
The untraceable nature of ZCash has been called to question by many critics. While we can't confidently assert that transactions on the ZCash network are untraceable in the long run, we can confirm that it provides better privacy than Bitcoin and most other cryptocurrencies.
Is ZCash A Good Investment?
ZCash is an incredible platform if privacy is your primary concern. But does that mean investing in ZEC is advisable?
To know whether a long-term investment in ZCash is a good decision, we need to consider the price history of the token, its current performance, as well as predictions from experts and authority websites. We will do that right away.
Read Also: 15 Reasons Why You Should Buy Zcash Today
ZCash Price History
ZCash was launched in 2016, about three years after work was started on the project. The publicists for the network did their job well, so there was already plenty of hype when it was launched. The hype was so much that within 40 minutes of trading on Poloniex, it became the most valuable cryptocurrency in the world, selling at $2.3 million per ZEC token and 3,299.99 Bitcoin per token.
Of course, the unprecedented value was never going to last. As the hysteria diminished, the coin price crashed considerably. It is also important to state that the historic "high" of the coin was just for a five-minute window and the trading volume was just 0.117 ZEC. The phenomenon was partly caused by the "slow start" released schedule employed by the creators.
The price of ZCash crashed considerably throughout 2016, and the coin closed the year at a little less than $50 per token. 2017 didn’t start too well for ZCash. By February, the coin was selling for $30 per token, but a bullish market was right around the corner.
ZCash improved dramatically between March and May 2017. By early June, the coin was selling for $393.97. It slowed down for a while, but then the crypto bubble came and took the coin to new heights. The coin reached $762.45 before the end of 2017.
Like other cryptocurrencies, ZCash crashed considerably in 2018. For most parts of the year, it traded for less than $100 per token with no major upswings or downswings. The trend continued through 2019 and 2020. It actually closed 2020 at $59.22.
Recent Performance And Current Position Of ZCash
In 2021, ZCash performed a lot better than it did in the last couple of years. The coin started 2021 on a bright note, reaching $97.13 on January 4th. By 11TH January, it has crossed the $100 mark, attaining a high of $119.43 before closing the day at $101.52.
ZCash experienced some upswings and downswings, and by February 8th, it reached $188.61. It dropped to about $109.74 on March 1st but started rising again. By March 15th, it has reached $160.41. May was the most spectacular month for the coin as it reached $342.54 and $370.14 on May 3rd and May 10th, respectively. It has dropped considerably over the following weeks. ZCash ended 2021 with a price of $146.56.
At the time of writing this piece, ZEC was trading for around $139.33 per token, a market capitalization of $1.8 billion, and the fully diluted market cap was $2.9 billion. It is ranked as the 66th biggest cryptocurrency in terms of market capitalization. The circulating supply of the coin is 13 million ZEC. The coin is expected to have a maximum supply of 21,000,000 ZEC.
ZCash Price Predictions
Looking at the predictions of experts and authority websites is one of the easiest ways to have an idea of how a digital asset can perform in the future. However, you should know that predictions can fail. That being said, let's look at reputable predictions about ZCash.
According to Wallet Investor, ZCash can be worth around $422.86 in one year. They also predict that the coin can reach $1,719.95 in five years (2027).
Digital Coin Prediction is also positive about ZCash’s future. Their recent prediction shows that the coin can finish 2022 at $194.27. They also believe that the coin can be worth $456.58 in the next five years (2027). By 2029, they expect ZCash to climb to $612.81.
Cryptoground is one of the most positive sites when it comes to current ZCash predictions. They expect the coin to grow steadily in the future. In the next one year, they believe that the coin can increase to $174. They also expect the coin to reach $1,222 in the next five years.
Trading Beast believes that ZCash will also go up in the coming months. They believe the coin will end 2022 at $165.75 as the maximum price. They also predict that it will be worth around $130.06 by the end of 2023. They believe that the coin will be worth up to $271.59 by December 2025.
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Where Will ZCash Be In the Next Ten Years?
We understand that long-term investors will be eager to know where ZCash can be in the next ten years. Though long-term predictions can be roughly accurate, you need to remember that the cryptocurrency universe is still at an infant stage and a rapidly evolving phase. Again, since the sector is hardly regulated and can come under the hammer of most economic powers, a lot can happen in ten years.
Having stressed the volatile nature of the cryptocurrency universe, we need to add that the sector is expected to grow with time. In the same vein, ZCash is expected to grow with the sector. In about five years of existence, the coin has been really volatile, but the network remains a solid platform with lots of potentials.
In the next ten years, ZCash can be worth so much. Many experts have predicted that the coin will be able to reach the $1000 mark again, and we are positive about that too. If the industry grows as expected, ZCash can become very valuable. It is already a highly attractive digital coin due to its privacy nature of its network, and we expect more people to become confident in the price and invest more.
Read More: Should You Buy ZCash?
Top Reasons To Invest In ZCash
ZCash is a valuable cryptocurrency that has earned several people reasonable profits in the past. There are several other reasons you may want to invest in the coin, including:
ZCash Is Still Considered Undervalued
ZCash is currently selling for more than $100, but it is still considered to be undervalued. This should give you a clue about the potentials of the coin. It has reached far greater heights in the future, and there are many reasons to believe that the price will climb further. Buying now gives you an advantage over those who will come in when the value goes up higher.
ZCash Is Backed By a Top Digital Asset Management Firm
Earlier, we briefly discussed the four interconnected entities that makeup ZCash. It is worthy of note that the platform and native currency are also backed by Grayscale, which is recognized as the largest digital asset management firm in the world. It launched ZCash Investment Trust as its third crypto investment vehicle after Bitcoin Investment Trust and Ethereum Investment Trust. This should give you an idea of the confidence investors have in ZCash.
The Coin Has a Finite Supply Set for Scarcity Soon
ZCash has a scarce mineable token supply, which makes it to be regarded as a store of value (just like Bitcoin). The block subsidy is halved at regular intervals, and this helps to keep inflation at bay. Once the 21 million total supply is mined, ZEC will achieve its full valuation. Price will continue to rise and fall before and after this, but it puts the asset in a position to command more value with time.
It Has Been Drifting Towards DeFi
Decentralized Finance has become a fast-growing sector on its own with lots of benefits. There have been calls from well-meaning users for ZCash to upgrade the protocol to bring more DeFi users. The platform has already done something in that line through the Wrapped ZCash (WZEC) made available on Ethereum since October 2020. This has and will continue to increase the daily use of ZCash, improving its value.
The Network Is Highly Secured
Traders and investors cherish secured platforms, and that is one of the things ZCash offers. The zk-SNARK zero-knowledge proof technology does not only boosts privacy but improves the security of the platform. Coupled with the fast transaction time, the security of the network will continue to make it attractive to traders and investors.
Why You Should Think Twice Before Investing In ZCash
You are probably thinking of ZCash as one of the best investment options in the cryptocurrency space. Actually, you are not far from the truth. However, there are a few drawbacks about the asset that you need to know about, including:
Suspicion on Its Use as a Privacy Coin
Many people, including crypto experts, have cast doubt on the privacy use of ZCash. Remember that many users of the platform are attracted to the privacy features. Suspicion on the level of privacy it offers, and any potential privacy issue can ruin its reputation.
Rivalry from High Transaction Count Coins
ZCash faces stiff competition from many other digital coins with similar features. As more cryptocurrencies hit the market, the competition will continue to get tougher. Dash and Monero are similar coins that are used to facilitate more transactions than ZEC.
Truth be told, ZCash is one of the most volatile coins in the cryptocurrency space. While volatility is a common issue in the crypto universe, it seems to be more pronounced in ZCash, and this can affect its reputation in the long run.
Check Out: Pros and Cons of Investing in ZCash
Should You Play The Long-Term Game With ZCash?
ZCash is undoubtedly a wonderful cryptocurrency when it comes to profit potentials. From all indications, the coin should be worth a lot more than its current value in years to come. However, there is no certainty about how it will perform in the next ten years.
If you are an ardent investor looking for a privacy coin to invest in, ZCash is a decent option. Remember, though, that you need to be smart with your investment. Again, you don’t necessarily have to wait for ten years before cashing in. You can find that your investment will bring huge returns in the next seven years. You need to monitor the market closely and choose the right time to sell.