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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

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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