Is Zcash a Good Investment?

Introduction

Zcash is a cryptocurrency aimed at using cryptography to provide enhanced privacy for its users compared to other cryptocurrencies such as Bitcoin. Zcash is based on Bitcoin's codebase. It shares many similarities, such as a fixed total supply of 21 million units. Unlike most cryptocurrencies, which make every transaction detail public, Zcash offers confidentiality to protect your privacy and your financial history. Transactions can be confirmed quickly with low transaction fees.

Zcash is a fair and open currency that can be spent, sent, and received via mobile phone, computer, or digital wallet. It offers everyone equal access, regardless of social status or demographic.

How does Zcash work?

Apart from its privacy features, Zcash operates similarly to other cryptocurrencies. Both shielded and unshielded Zcash transactions are verified by nodes and recorded on the blockchain. Blocks are added by an open network of computers using an algorithm called Equihash, which calculates the amount of RAM a miner is devoting to securing the blockchain.

This design was meant to mitigate the impact of specialized mining equipment, allowing smaller computers to better compete for rewards. (As of 2018, however, large-scale mining businesses had developed Zcash-specific mining machines.)

Another uncommon attribute of Zcash was how its cryptocurrency was set up to be distributed. For the first four years of the blockchain’s operation, 80% of its block reward was programmed to go to miners, with 20% allocated to the Electric Coin Company, the Zcash Foundation as well as some of their key employees and stakeholders. 

This subsidy was supposed to expire in 2020, around the time that the protocol experiences its first “halving,” in which the supply of new ZEC the protocol can produce is reduced. As of early 2020, a vote to extend the rewards allocation to these companies has yet to occur.

Financial Analysis

The price of Zcash has fallen by 12.33% in the past 7 days. The price declined by 6.30% in the last 24 hours. In just the past hour, the price shrunk by 1.10%. The current price is A$143.493169 per ZEC. Zcash is 71.67% below the all-time high of A$506.57.The current circulating supply is 12,746,256.25 ZEC.

Zcash's ROI is underperformed in the 'Privacy Coins' category which had 420% growth over the past year at the time of writing, It's also underperformed in the crypto market which had 3135% growth over the past year. You can have Free access to our report about Zcash's ROI here.

Moreover, a capable marketing team and brand awareness have a direct impact on the success of any project. Popularity is a critical factor in determining the success of a cryptocurrency project. In order to consider the popularity of the Zcash since the lunch date, Twitter with a 6% and Reddit with a 9% growth rate is provided. Based on the data, Zcash's number of Twitter account followers has increased over time, and currently, the number of users is more than 79160. On the other side, the number of Reddit subscribers has increased 9% since May 02. You can find our full popularity report here.

Talking about market capitalization ranking and price, Zcash's market cap ranking was a downtrend from May 02, 2021, until September 28, 2021. However, its liquidity score is 71% upper the market's average score, which means that it would be easier to sell Zcash if the market is falling. You can find our report about Zcash's market capitalization, price, and liquidity score here.

As of August 31, 2021, Zcash (ZEC) was priced at $143.72, with a market capitalization of $1.8 billion at the time of writing. The smallest ZEC unit is called the “Zatoichi,” which equates to 0.00000001 ZEC or one hundred millionth of a ZEC. All transactions of Zcash are recorded on the Zcash blockchain. Zcash can be purchased on cryptocurrency exchanges and stored in a Zcash wallet or any other regulated exchange crypto wallet.

The amount of Zcash coins that can be mined is limited to 21 million, the same as for Bitcoin. The price of Zcash or ZEC is purely determined by various macroeconomic factors and crypto-market dynamics. There is approximately 12.5 million Zcash in circulation as of August 2021.

Is Zcash Coin The Best Investment Option in 2021?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.