The extraordinary digital currency market has proven to be very volatile in this last period, showing large gains and losses in a few hours. Zcash (ZEC) the privacy-centered cryptocurrency is no exception and I will therefore analyze this cryptocurrency, trying to understand what it offers and if investing in it could be a good idea.
What is it and how does it work?
Zcash was created as an alternative to Bitcoin, did not have a starting ICO and was obtained through mining. However unlike the digital reference currency that only uses blockchain transaction technology, Zcash uses zk-snarks, an encrypted system to ensure that all information regarding the user’s transactions is securely encrypted. The only information available during a transaction made using the system of this digital currency is only the duration of the transaction, in fact users can also decide to use the t-addr that controls “transparent” transactions similar to those of Bitcoin.
Price History and performances
This coin is currently trading at about $ 420 for an estimated market capitalization of $ 1.3 billion (source: coinmarketcap) which gives it the twenty-third position in the cryptocurrency ranking.
Pro
It offers selective transparency.
It is extracted from the GPU to prevent centralization.
Governance potentially more effective.
It offers exclusive privacy features.
It has an impressive 2.5-minute blocking time.
Cons
20% tax on all coins drawn to pay developers and provide returns to investors.
The anonymity of transactions encourages its illicit use
The future
Zcash has a solid technology and strong privacy features that distinguish it from other cryptocurrencies. ZEC also has some interesting partnerships among which JPMorgan stands out. Some investors have stated that the value of Zcash (ZEC) could reach $ 62,000. This prediction is completely hypothetical and seems very much and I repeat very unlikely considering that the cryptocurrency has never reached 40% of its initial price.
