Despite regulation restrictions, the popularity of cryptocurrencies has been growing over the years. We all have heard about Bitcoin, Ethereum, and Litecoin. Still, there are other digital assets that can provide investors with exciting opportunities. ZEC is one of them.
Zcash is one of the most promising tokens with a high level of anonymity. It’s the first open-source digital asset based on a blockchain. The coin appeared on October 28, 2016. Bitcoin’s framework became a foundation for Zcash, which is why both coins have many things in common. Still, their value differs significantly – BTC is near $20,000, while ZEC is still below $100. What determines the price of Zcash? How much will Zcash be worth?
Zcash price prediction is not an easy thing. In this guide, we will consider not only historical price movements but predictions of ZEC analysts. To make your future investing more successful, we will highlight factors that affect the coin’s market price, so you will be able to make your own Zcash price forecasts. Will the price of Zcash go up? Let’s find out!
The article covers the following subjects:
Zcash: What Is Inside?
Before we consider price movements, let’s answer one simple question – what is Zcash? Zcash or ZEC is a cryptocurrency built on a decentralized blockchain that includes open-source code. That is its main similarity with Bitcoin. Another thing Zcash shares with BTC is the cap. Both cryptocurrencies have a limited offer of 21 million units.
However, ZEC, as a privacy coin, takes further steps to protect its users. The system was developed to provide users and their transactions with anonymity. ZEC increases privacy by applying zero-knowledge proofs (zk-SNARKs). It allows users to validate transactions without disclosure of information that could affect the user’s privacy. At the same time, the ZEC coin has an exciting feature. It allows users to share address and transaction information they can select to comply with audits and regulations.
According to its developers, ZEC is built on strong science. Let’s talk more about ZEC addresses. They are divided into two types:
Z-addresses are private, while t-addresses are considered transparent. There are four transaction types between these kinds of addresses Two address types are interconnected. You can transfer funds between both address types. The only requirement is to be aware of the privacy implications.
The key advantages of Zcash are low-rate transactions, the anonymity of users and transactions, disclosure of payment data to a third party, transaction expiration, and multiple signatures for transactions.
The main factor that contributed to the development of cryptocurrency is privacy. ZEC submits a high degree of it and can be called a “leading privacy” coin. Yet, this cryptocurrency hasn’t reached the highs of BTC. What is Zcash’s future? We’ll address that next.
The Price History of ZEC: Focus on 2020
The development of Zcash dates back to the creation of ZeroCash cryptographic protocol, which was supposed to become a supplement of well-known Bitcoin. As the developers of Zerocash couldn’t agree with Bitcoin founders, a new cryptocurrency, Zcash, was formed.
This digital currency was supposed to keep the ideology of ZeroCash but use a protocol separated from Bitcoin. On October 28, 2016, the new Zcash cryptocurrency was officially released. The launch of the private ZEC coin attracted a lot of attention. As a result, its price skyrocketed to around $6,000. However, later it balanced in the area of $40-70.
According to Coinmarketcap, ZEC is the 35th…