Even before cryptocurrencies were released, users had been looking for privacy in their financial transactions. Many thought that Bitcoin would be the solution to their woes, thanks to its pseudonymous transactions. However, Bitcoin transactions are transparent and don’t hide your details. Hackers can easily trace back your funds to your person, which can severely jeopardize your safety.
That said, some cryptocurrencies have been created to specifically address this issue. Zcash is one of these privacy-focused cryptos that attempt to hide all transaction data from the public and keep the participants in crypto transactions out of the spotlight.
In this article, we analyze the unique characteristics of Zcash (ZEC) and how this technology manages to effectively hide one’s info in crypto transactions. We will do a short technical analysis of the price and provide a price prediction for the short and long term. This should give you some information on when you might want to do a to carry out a ZEC to BTC exchange or wise versa.
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What’s Unique About Zcash
There’s one word that prevails when looking at Zcash — privacy. This proof-of-work protocol uses a similar algorithm to Bitcoin, but with an added twist. Released in 2016, the coin’s main goal was to alleviate the privacy issues of other cryptocurrencies.
To achieve this, Zcash introduced the concept of zero-knowledge proofs, or ZK-Snarks, which allow the protocol to completely hide the transaction data from the public. The Zcash network has two options: transparent transactions or private ones. Users can choose between full privacy or partial. The fact of the executed transaction is recorded, but the data of the transaction remains obfuscated.
Since it’s a fork of the Bitcoin code, Zcash has inherited a lot of its features. It has a limited supply of 21 million coins, which is considered highly scarce in the current crypto landscape. But unlike Bitcoin, it doesn’t use the SHA-256 algorithm. Instead, it runs on equihash, allowing GPU miners to participate in the validation of transactions.
Price History of ZEC
ZEC’s all-time high was recorded almost instantly after launch — $5,941.80 in October 2016. However, since the price had been mainly driven by speculators, it quickly dropped to around $35. In the 2017-2018 bullish crypto cycle, the coin benefited from the general upwards momentum of the market and reached a local ATH of $880 in January 2018.
After this considerable price hike, the market went bear, and ZEC lost a consequential amount of its value. By January 2019, it was worth $50 per ZEC coin.
After a short recovery during the summer of 2019, it reached $112, but this bullish momentum didn’t last long. In 2020, the coin’s price fluctuated between $20 and $60.
In 2021, another bullish rally pushed prices above $100 and in May 2021, ZEC reached as high as $300. However, this would be the highest point for the coin during this bull market, as the price has since retraced towards the $100 mark, where it seems to be finding long-term support.
ZEC Price Prediction 2022
Digitalcoinprice.com offers a forecast for ZEC that shows the coin reaching $140 by the end of the year. Considering the strong bearish sentiments in all markets combined, this isn’t such a bad outcome.
Priceprediction.net is even less optimistic, providing a maximum of $114 per coin.
ZEC Price Prediction 2023-2027
So what do analysts think about ZEC? Will it ever be able to reclaim its 2018 high of $880? While this might be improbable, there’s still some upside potential in the long term.
Digitalcoinprice predicts slow but steady gains for ZEC in the next five years. By 2023, they expect it to reach a maximum of $162. The website expects the price to slowly rise by 10% each year and get as high as $260 by 2027.
Priceprediction.net has a much more bullish view in the long term. Considering the high scarcity of ZEC, they predict a price of $176.35 for 2023. However, for 2027, they expect it to go as high as $770.87, slowly closing in on its ATH from 2018.
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Zcash is one of the top privacy coins on the market and remains popular with a large part of the crypto community. Its biggest advantages are its scarcity and its ability to avoid some of the high volatility of the market. Compared to the OMG price prediction, which came out at the same time, ZEC didn’t fluctuate as drastically. Because of this, investors often consider it a sound financial instrument for the long term, as it can act as a store of value to hedge against inflation.