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

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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 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

SEC Postpones Bitcoin ETF Decision Once Again

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The new announcement by the US SEC (Securities and Exchange Commission) states that the decision regarding the potential approval of several applications for a Bitcoin ETF (exchange-traded funds) is once again postponed. This time, the SEC declared that the decision will be made by February 27th, 2019.

The application requesting that VanExk SolidX BTC fund get s listed on Cboe BZx Exchange that was published on July 2nd needs to be given order by the commission within 180 days. Originally, the deadline for doing so was December 29th. However, the SEC decided to extend the period for another 60 days, effectively moving it to February 27th.

The SEC stated that designating a longer period for making a decision was found appropriate, as more time is needed in order to properly consider the rule change.

Cryptocurrencies need a sufficient monitoring mechanism, claims SEC chairman

Recent reports claim that the SEC received over 1,600 comments after requesting the public opinion regarding the ETF applications issue. In the past, the SEC rejected many such applications, some of which were even submitted by SolidX itself. In addition, they also rejected the applications submitted by Gemini, the exchange owned by Winklevoss twins. Brothers were attempting to gain ETF approval ever since 2013, although to no avail.

Other applications were also submitted by Direxion, ProShares, as well as GraniteShares. The SEC rejected them…

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What to Expect in 2019: BTC, BAT, and Steem

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There are only a few weeks of 2018 left, and considering how bearish and crypto-unfriendly this year was, a lot of investors will likely be pleased to see it gone. Many believe that 2019 will be the year that will correct BTC prices and bring forth the period of great recovery.

But what does that mean for digital currencies? Which ones are a good investment right now? This is something that we will, hopefully, be able to answer right now. Here are the top 3 coins that everyone should keep an eye on in 2019.

1. Bitcoin (BTC)

Of course, we have to start with Bitcoin, the first and largest cryptocurrency. Bitcoin has lost a lot in 2018, and its losses are unparalleled by any other coin. In fact, in terms of market cap, Bitcoin has lost as much as the rest of the crypto market put together.

Many believe that its rapid growth, which started in late 2017 and has brought it to its all-time high, is responsible. That the bearish 2018 was only a one large price correction of the last year’s price surge. Even if this is true, price corrections, luckily, all end sooner or later, and when this one comes to a close, Bitcoin will likely be ready for a big comeback.

2019 is expected to bring a lot that will serve BTC’s…

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Altcoins

The Three Biggest Problems with Crypto

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In this bear market, everybody’s asking the same questions. Why is Bitcoin falling? When will the market turn around? Is this the end of the crypto boom?

However, before we can answer questions like these, we need to step back and do an honest appraisal of where our industry stands and what is really holding it back. Despite its growing popularity, cryptocurrency still struggles to gain mainstream appeal. While crypto has managed to distance itself from the early days, when it was used to buy illegal goods online, the currency still conjures up negative feelings for a lot of people unfamiliar with the technology — and all too often, for good reasons.

Cryptocurrency is still relatively new, which means that many casual users are still exploring different ways to use crypto in their day-to-day lives. Unfortunately, this lack of knowledge leaves a lot of users vulnerable to scammers seeking to take advantage of their ignorance and inexperience.

We’ve contacted various types of people within the crypto community, surveying newbies, traders, investors, and professionals, asking what the biggest problems in crypto are. We found there to be three major problems holding the industry back:

Scammers

Failed projects

Immature technology

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