ZCash is an alternative cryptocurrency that is looking to displace Bitcoin as the main medium of exchange and store of value in the cryptocurrency world. Its main selling point is its advanced privacy technology, which uses zero-knowledge proofs to verify transactions without having to reveal the parties or the amounts involved to outside parties. ZCash started out at a very high price when it was first released in the summer of 2017 and was one of the big winners in the cryptocurrency rally at the start of this year. It has stabilized back down to a suitable level, but our ZCash price predictions remain optimistic about its value in the coming months. Several reasons that have led to our conclusions are outlined in the Zcash price analysis below.
What are the ZCash Price Predictions for 2018?
Stable During Market Shifts
The cryptocurrency market has always been a fairly volatile one, and the recent market movements have made it considerably more so. Among all of the coins shooting into the stratosphere only to come crashing down, ZCash has remained surprisingly stable throughout this year. Its valuation in dollars has risen and fallen together with the Bitcoin prices, but its Bitcoin price has stayed mostly level.
This implies that the fundamentals of its value – the supply and demand for the token – are sufficiently robust to keep the coin from experiencing wild swings during periods of greater speculation or sell-offs. Longer-term investors should take a keen look at this coin, as its stability can serve as a good hedge in an otherwise volatile market.
The idea that historically, ZCash has remained relatively stable compared to the rest of the market creates some basic structure for our ZCash price prediction to work with. Assuming Bitcoin prices stay relatively level – as it is currently impossible to trade ZCash directly for fiat – it should remain somewhere within the band of $200 to $400 in value over the medium term, assuming that nothing else changes significantly for the token.
If it is performing well and Bitcoin sees another rally similar to the one in January of this year, ZCash could get a valuation as high as $1000, though going that high is unlikely and will almost certainly be followed by a quick correction.
Good Privacy Protections
ZCash takes aim at Bitcoin, seeking to supplant it as the de-facto digital currency and the chosen decentralized store of value. Bitcoin currently dominates that domain, but it does have a number of drawbacks. Bitcoin is not nearly as private as it can initially seem to the less technically savvy users, with people suspected of crimes often seeing their wallets seized by law enforcement. Moreover, even if it was possible to maintain anonymity, it is possible for governments to blacklist the coins themselves should they have passed through certain addresses that it does not like.
By using zero-knowledge proof algorithms, ZCash avoids those issues. It is possible for transactions using ZCash to be fully verifiable using the blockchain without revealing any information about the sender or the recipient, or the amount of ZCash that was sent. That allows ZCash to remain perfectly fungible, as opposed to Bitcoin, where ‘dirty’ bitcoins will be worth less than ‘clean’ ones, with the amount of the latter steadily decreasing over time.
The ZCash team has also been very active in maintaining the privacy technologies behind ZCash. They encourage researchers to try to crack their algorithms or otherwise defeat the ZCash privacy system, making changes as necessary to remain a truly private cryptocurrency.
Over the long term, this is likely to attract many Bitcoin users over to ZCash, raising the demand for the coin. This will, in turn, grow its price. Given that the private transaction market is hard to gauge, it is difficult to make a concrete ZCash price prediction on that basis, but an increase of 25-30% from base value by the end of the year is a very likely scenario given current trends.
Even the best ideas and technologies can languish if they don’t get the right people on their side, so it is a good thing that ZCash has attracted the right kind of attention with its technology. There are many investors, both in traditional finance and in the crypto world, that are bullish on ZCash’s potential. The most recent endorsers of the project are Tyler and Cameron Winklevoss, who together run the Gemini Bitcoin exchange.
At the end of May, they began listing ZCash on their exchange, significantly increasing the exposure of the token and bringing aboard many new buyers. The price spiked briefly before stabilizing at a slightly higher equilibrium, which is not major news. However, a very important factor to our ZCash price prediction did change: the trading volume increased significantly, and the current 24-hour numbers are still twice as high as those before ZCash was listed on Gemini.
That suggests that there is a significant untapped market for ZCash still available that will be tapped as ZCash expands to new exchanges and attracts more high-profile supporters. This, in turn, will considerably increase the demand for the token and push its equilibrium price up. This supports our earlier ZCash price prediction of around 25 to 30% growth over the coming year.
Active ASIC Opposition
One factor that is difficult to assess while arriving at ZCash price predictions for the coming year has been the role of ZCash in the growing anti-ASIC movement among cryptocurrency developers. ASICs are application-specific integrated circuits – basically chipsets designed specifically for cryptocurrency mining.
While they are far more efficient than normal computers at mining cryptocurrencies, they are also expensive and tend to concentrate mining power in the hands of a number of mining pools controlled by an even smaller number of companies. A large portion of the world’s crypto pools are specifically controlled by the Chinese company Bitmain, which also happens to be the leading manufacturer of ASICs.
ASICs are controversial in the crypto community, as many users have turned to cryptocurrencies precisely because they are decentralized and outside of anyone’s control. Centralized mining pools can also influence the direction of the currency, such as during the recent Bitcoin forking debate. This is especially problematic for privacy-oriented cryptocurrencies, and many privacy cryptos have worked to make mining them more difficult for ASICs, including ZCash.
This could be good news for ZCash, as users choose it over Bitcoin due to centralization concerns, but it could also backfire if not enough miners choose to mine ZCash to sustain its transaction volume. The resulting throughput issues could significantly hurt the ZCash adoption ratio. There is not enough information currently to relay this into a concrete ZCash price prediction, but investors should keep an eye on how this story develops, both with ZCash specifically and the wider crypto world in general.
ZCash is a promising new cryptocurrency with lots of room to grow. It benefits from strong points that directly target the issues that its main rival – Bitcoin – faces. It is more decentralized and offers a much greater level of privacy, which is bound to make it more attractive to users. It has also taken steps recently to increase its visibility on the market, driving demand and increasing trading volume. All of this points to significant growth in the future, though its relatively stable trajectory so far suggests it will come steadily rather than suddenly. ZCash is a solid crypto to hold with good expectations of future returns. What are your thoughts on our ZCash price prediction? Let us know!