Bitcoin

Is The Zcash (ZEC) Run Sustainable? We Think So.

Published

6 years ago

December 18, 2017

This time last week, Zcash (ZEC) was trading for around $295 a piece and a market capitalization of $830 million. Right now (early morning ET), the same coins go for $542 and the market capitalization sits at more than $1.5 billion. That’s an 83% run in a matter of days. Sure, in the crypto space we’re getting used to seeing these runs but, at some point, things are going to settle down and only those coins (and companies) that can fundamentally support the change in value they have respectively enjoyed are going to be able to maintain their increased valuation.

So, the obvious question is, then, is is Zcash in this latter category?

Let’s take a look.

This one has been about for a while now so there’s a good chance that readers will have at least heard of Zcash or its predecessor Zerocoin. For those that haven’t, however, it’s essentially bitcoin with a privacy layer added on top.

Back in the early days of bitcoin, a few things were proclaimed about the cryptocurrency that have since proven inaccurate. That transactions would be quick and free is an example. That they would be anonymous is another. It’s this latter point that the team at Zcash set about trying to solve. Sure, a bitcoin transaction is only traceable in terms of what wallet sent how much to which other wallet but the identity of wallet holders, in many cases, is available for anyone that is willing to do a bit of digging and, as bitcoin becomes more and more mainstream, this identity issue is only going to expand.

ZCash Daily Chart

Zcash is a cryptocurrency that’s set up to combat this issue. It’s got a built in shielding function that adds a layer of anonymity (true anonymity) to any transactions. You can take a look at the Zcash blockchain and see that a transaction has taken place but you can’t see which wallets were on either side of the transaction, nor is it possible to see how much Zcash was sent from one wallet to another.

This seems a bit shady, right off the bat, but it’s not. If big business is ever going to be conducted in cryptocurrency, anonymity (and especially as relates to transaction sizing) is going to be crucial.

With bitcoin, this isn’t possible. With Zcash, it is.

So why is the coin running right now?

This is one of the most open projects (from a development perspective) in the space and this openness has led to the coin and the company attracting a faithful and sizeable following. In turn, this sizeable following has led to some outside interest.

And it’s exactly that that’s driving the recent run. At the end of last week, Zcash (and, specifically, its founder) was profiled in the print version of Fortune Magazine. The profile got a front cover billing and had a dedicated eight-page spread, across which Zcash was billed as the cryptocurrency that’s being adopted by big-name banks (JP Morgan, for example) and that’s potentially going to give bitcoin a run for its money.

When a coin like Zcash starts being billed as a “better bitcoin” it’s going to attract a huge amount of speculative volume. When speculative volume flows towards a coin in this space right now, we almost always see an upside revaluation and this example is no different.

So is it sustainable?

In a word, yes.

Zcash truly does solve a number of the major existing issues associated with bitcoin right now and – as its popularity grows, and its price rises – it’s only going to attract more speculative interest from the outside markets.

We will be updating our subscribers as soon as we know more. For the latest on ZEC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Zcash.

Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

Published

4 months ago

December 18, 2023

Crispus

Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

Published

4 months ago

December 14, 2023

Crispus

Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

Bitcoin

Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

Published

4 months ago

December 6, 2023

Crispus

Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…