Although Zcash was under development as early as 2013, it did not hit the market until 2016. When it did, it made a huge splash, making huge early profits. Zcash immediately caught investors attention when it reached a coin price of $3,000 after only one full week on the market.
This made Zcash big news in the crypto scene very early on and this gave the cryptocurrency great momentum going forward. Zcash prides itself on being the secure cryptocurrency, one that aims to be more private than any other altcoin. Because of its impressive reputation, Zcash received $3M in funds from tech investors in its development stage.
Zcash is a decentralized blockchain cryptocurrency that uses the technological framework of Bitcoin. This particular crypto coin has been built with privacy in mind. It aims to be traceable enough for users to be able to comply with tax and trading rules. But on their own terms because the privacy level is up to the individual user.
This meant that Zcash was making a distinctive name for itself even in its days as a brand new cryptocurrency. The Zcash, security focused system offers two versions of functionality. Users can opt for a t-addr system where their transactions are transparent. Or they can choose a covert shielded z-addr system where transactions are approved anonymously.
This new angle to cryptocurrency has gained a lot of attention for Zcash throughout the decentralized finance (Defi) sector. The open and transparent version of Zcash is most widely used, but many have appreciated the availability of the added security option of selective disclosure. This gives more power to the cryptocurrency users themselves.
These are some of the main features of Zcash, but there are a few areas to consider further before investing in this impressive cryptocurrency in 2022.
Zcash and Bitcoin
Zcash benefits from its relatability to Bitcoin. The Zcash system has been built with the Bitcoin model in mind to utilise this trusted method of generating cryptocurrency. Both have a fixed supply and Zcash’s supply is capped at 21 million coins, which creates increased demand.
Both systems can be mined to receive crypto coins, however, Zcash has a fixed way of distributing their profits. Zcash gives the miners that facilitate the release of the coins 80% of the reward for mining each blockchain section. However, Zcash uses the other 20% to invest in the longevity of its cryptocurrency.
This money is managed by the Zcash development fund which makes sure that 7% goes to the Electric Coin Company, which is the for-profit side of running Zcash. Another 5 % goes to the non-profit Zcash Foundation. These two offshoots are essential to keeping the Zcash system running effectively for its users.
There is also a further 8% which goes to funding development grants to ensure that Zcash’s system remains as secure, scalable and efficient as possible going forward.
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Zcash Secret Setup
One of the main ways that Zcash is different from Bitcoin is the different style of setup. Although the system was designed to be similar to Bitcoin’s profitable model, there are a couple of key differences.
Bitcoin was set up by one person, known as Satoshi. However, Zcash developed a strategy, referred to as a Ceremony, which was designed to create the ultimate model for security and privacy. This involved the creation of a number key, which would act as a core password to the system.
To make sure that this was created securely and without one person having too much power the Ceremony evolved. Over two days six global locations had to synchronise to create this number. The locations and people involved were not revealed before the start of the Ceremony for security reasons.
These people then created the random number that would be the key to the Zcash system and set the live protocol in motion, fully launching Zcash. The computers used for this were destroyed to prevent any of the information from leaking, which would have posed a security risk to the whole Zcash system.
The extreme lengths that the Zcash creators went to, to put the security of the system at the forefront of their operations, has impressed investors and boosted interest in the cryptocurrency. This is one of the reasons for their high profits early on and the substantial coin value at that time.
New investors are interested in buying Zcash now while its coin price is low, but still competitive when compared to the wider crypto market. This would give incredibly high percentage returns should Zcash return to match its 2016 peak.
Read Also: Pros and Cons of Investing in ZCash
Trading ZEC to USD
The Zcash cryptocurrency has followed an unusual set of trading patterns so far. After one of the best initial performances, reaching highs of over $3000 per ZEC coin, Zcash has changed trajectory several times. After a dramatic drop from this early high, Zcash saw a bullish trading period in mid-2017 which led to a series of peaks through into 2018 with highs of $880.
However, Zcash then suffered a long sideways trading period throughout 2019 and 2020 trading at a much lower rate of around $50 which shocked investors. Investors are now looking to return to ZEC in 2022 in anticipation of the cryptocurrency’s return to its early success now that the sideways trading pattern has ended.
Even before the market-wide bull run at the beginning of 2021, ZEC was gaining much needed momentum. Those investing in ZEC in early 2021 then saw excellent returns when the coin peaked at $370 that May. However, the bearish trading cycles which spread across the cryptocurrency market in the second half of 2021 then cut the bull run short for ZEC, bringing it back below the $200 mark.
However, the dip was not as drastic for Zcash as it was for most cryptocurrencies suffering the difficult trading conditions of the third quarter of 2021. This has given more hope that the ZEC coin will get back on track as the market improves towards 2022.
Improvement is definitely underway. ZEC began its upward climb in the final quarter of 2021 which is very positive for those hoping to see positive returns in 2022. The ZEC trading pattern is characteristically volatile. However, the upward trajectory has begun to establish itself and the Zcash coin is performing well against difficult market conditions. From the current price of $189 at the time of writing, the upward trend is thought to be set to continue to cycle slowly upwards throughout 2022.
Check Out: Should You Buy ZCash?
Will ZEC Rebound from the Last Correction?
Zcash has suffered a correction after its last major peak in May 2021 and the crypto coin dropped from $370 down to $115 in one week. However, as the bearish market dip continued into June and July 2021 the ZEC price only dipped to a low of $83.42. This was a much smaller percentage dip than expected given the downward market-wide trends.
The low-level impact of the bearish trading period is a positive sign for the ZEC recovery rate. It is also highly likely that ZEC will recover the $370 price seen before the last correction as this is still a long way off of the coin’s potential given the previous high of over $3,000.
This makes recovery very likely in 2022, however it is still relatively unclear at what rate the coin will recover and whether a new run of peaks will take ZEC back past the $1,000 mark.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Predictions for Zcash in 2022 and the Future
The long term predictions are favourable. Market experts have separately predicted that over the next five years Zcash is very likely to rise to around $500. There is going to be a characteristically volatile trading pattern that will take the price down as well as up during this time. However, there are significant indicators to suggest that ZEC will have surpassed the $500 mark by 2026.
This is less than some analysts had expected, as there has been a general hope that Zcash would regather the momentum of its initial bull run and return to $3,000 or higher. However, although there may be surges that take ZEC to these heights in 2022 or the next few years, most market analysts are not confident that this will happen at this time.
The slower growth predicted should still yield positive returns for new investors as it suggests a steady increase in price going forward. There has also been a recent increased adoption of the Zcash higher security shielded pools, rather than the previously popular transparent pools:
‘At the end of August, the total value of the shielded Sapling pool reached an all-time high of 743k $ZEC. The #Zcash privacy set was at 400k transactions, more than double what it was a year ago.’
@ElectricCoinCo, Twitter account of Zcash
This higher interest in the security features of Zcash signals more market adoption going forward which would then boost the ZEC coin price.
There have been some negative predictions that have stated that Zcash will rise during 2022 and 2023 to around $250. But this will then lead to a decline in 2024 and 2025 bringing the ZEC coin price to as low as $45 by the end of 2025.
However, there are more analysts suggesting that the slow growth model is the likely course for ZEC. These predictions place ZEC at around $580 by mid-2026. Which is a moderate rate of profit over time.
Zcash Trading Forecast for 2022
The current forecast for 2022 is very positive as it is set to be a good growth year for ZEC, with sideways trading more likely later on in 2023 and 2024. If this is the case then any major surges that Zcash ZEC is likely to have should occur during the later stages of 2022.
This would give the opportunity for large short term profits, particularly if the surges reach beyond the $1,000. If these major surges occur they are likely to be followed by harsh corrections. However, there would be profitable trading opportunities before the correction occurs.
The volatile trading cycles also provide profitable swing trading options for new investors, as well as the general trend towards buying the dip following the market downturn.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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FAQs
Who is behind Zcash?
Matthew Green, a professor at Johns Hopkins University in Baltimore, USA, lead a team of graduate students in the development of an early version of the Zcash system. The project was later passed to the Zcash group which gave the cryptocurrency its name and finished the development process.
The Zcash organization was headed by cyber security expert Zooko Wilcox who was working in Colorado and was a self-proclaimed cypherpunk. Due to his speciality being in cyber security and encryption, Wilcox led Zcash down its path to being a security-focused cryptocurrency.
What is Zcash?
Zcash is a cryptocurrency built using the same basic technology as Bitcoin and which can be used to pay for compatible goods and services, be exchanged for other cryptocurrencies or fiat currencies and can be bought and sold as an investment option.
It is a decentralized cryptocurrency and is, therefore, part of the growing global Defi industry and it centres on privacy and anonymity for its transactions. Privacy levels can be set by the user of the cryptocurrency who is completing transactions using Zcash. Zcash is currently transitioning to be known as the Electric Coin Company going forward.
How does ZEC compare to the market?
Zcash has dropped in the market and is currently ranked 66th in terms of market capitalization, with a market cap of $1.7B. This is expected to improve as the market stabilises and Zcash can adopt a steady growth pattern. Zcash has performed well during the market dip with low levels of decline during the difficult trading period.
Should I invest in ZEC in 2022?
This is a good time for new investment in Zcash as buying the dip is still taking place while the coin is at a low price point. There is also a lot of projected growth for the later stages of 2022 so those purchasing in the first quarter should see profits later in the same year.
Is ZEC still going to go up?
ZEC is predicted to go up substantially from its current price of $135 at the time of writing. The ZEC coin price may double over the course of 2022 and is expected to hit at least $280 by the fourth quarter.
The growth is then expected to slow but an upward trajectory is expected during 2023 and 2024.
What will ZEC prices rise to in 2022?
ZEC is expected to rise to between $200 and $280 by the end of 2022. However, this does not account for surges during bullish trading cycles which may take ZEC significantly higher. These surges prices are unlikely to be maintained at their peak value, but they will give opportunity for very large short term profits for those actively trading ZEC.