Cryptocurrency Zcash has grown sharply by a third in the last month alone against the backdrop of positive announcements from the creators. We understand what it is and what exactly influenced the ZEC rate. We are also studying the prospects for Zcash: can the coin continue to grow in 2022.
What is Zcash
Zcash (ZEC) is an actively traded cryptocurrency that is among the top 50 assets on the Coin Market Cap by total capitalization. It ranks 49th in the ranking, and the figure is almost $2 billion.
The first developments that eventually led to the creation of cryptocurrency began in 2014. Then a group of researchers from several universities started developing the Zerocash protocol. The main idea was to increase the level of anonymity in the blockchain.
October 28, 2016 is considered to be the date of appearance of Zcash. It was then that the creators held a “cryptographic ceremony” for the launch of the cryptocurrency.
Cryptocurrency Zec: technical data
Zcash is based on Bitcoin protocols, but is not a fork of the latter. The two cryptocurrencies have a lot in common. For example, they both use the Proof-of-Work algorithm to add new transactions to the blockchain. In other words, both BTC and ZEC use mining.
Now the project can definitely be called completely independent, despite the fact that Zcash is based on bitcoin. Shortly after the appearance of a new cryptocurrency under the ticker ZEC, the leading crypto exchanges added to themselves.
The main difference between Zcash is that this cryptocurrency provides much more confidentiality of transactions. In addition, blocks on the ZEC blockchain are generated eight times faster than those of BTC, and transaction fees are lower. After the network upgrade in 2018-2019, when blocks in the Zcash network began to be created faster, the creators announced a future transition to the Proof-of-Stake (PoS) algorithm. This means that the developers intend to exclude mining as a means of recording transactions.
As mentioned above, BTC and ZEC have a lot in common. Among the similarities of cryptocurrencies is limited emission. As with BTC, the maximum number of ZEC coins is limited to 21 million. Of this number, 13.9 million ZEC coins were mined, which is approximately 66% of the total.
The first Zcash coins did not enter circulation through an initial offering (ICO), since the cryptocurrency appeared before the boom of such events. Every four years, the network holds a halving – when the reward for mining is halved. This is necessary to control inflation.
If we talk about the ZEC forecast, then analysts and sites that predict the movement of coin rates see the prospect of cryptocurrency growth. For example, the author of Crypto News Z is quite optimistic and believes that Zcash will trade at a price of $300 to $360 this year. And by the end of 2026, the analyst believes, the cost will be about $520.
Analytical website Wallet Investor offers a more restrained forecast for Zcash. According to him, in a year the value of the coin will reach $211. If we talk about a longer period, then in five years, according to Wallet Investor’s calculations, the price of ZEC will exceed $451.
The Coin Price Forecast website offers the following Zcash forecast: according to its calculations, by the end of 2022, the value of the coin will be $228. By the end of 2027, the cost could be $503. Finally, Digital Coin Price believes that the $300 Zcash milestone will only be passed in 2027. The portal set the maximum price for 2022 at $201.78.
Forecasts are based on the calculations of algorithms that use historical data to predict the course movement. Keep in mind that past success does not guarantee future growth. Always do your own research before investing. And don’t invest the money you need to live.
Is it worth investing in Zcash?
Zcash has potential in the long run. The history of the course movement gives analysts the opportunity to predict the growth of cryptocurrency in the future. At the same time, do not forget that any forecast is based on past success, which is not a guarantee of future growth.
Will Zcash rise?
Analysts are positive about the prospects for Zcash. Some of them believe that Zcash will trade between $300 and $360 in 2022. And by the end of 2026, its cost may be about $520.