The new Cryptocurrency ZCash
Zcash is hyped as a possible Bitcoin ‘killer’!
As most newly launched cryptocurrencies, Zcash is based on the Bitcoin Block Chain. Yet it has some special functions to offer. ZCash transactions on the so-called ZEC block chain automatically hide the sender, recipient and value of the transaction.
Only the persons possessing the correct decrypt key can see the contents of the Zcash-transactions. Users have complete control over this view key and can provide others with it at their discretion. If you are
Zcash has been released on the 28th of October 2016. It was firstly spoken on the internet in the beginning of 2016 – so the development has been long enough to make sure the coin has no big security flaws.
Innovation behind ZEC
So what is the big fuzz behind ZEC? Well, it solves the fungibility problem, which is a requirement for money in the real world. Fungibility in terms of Bitcoin means, that each Bitcoin should be worth the same, no matter who was the previous owner.
ZCash – should you buy or sell ZEC?
This is probably the one million dollar – or btc – question. As writing this, the price of ZEC is 473 USD or 0.673 BTC. Here is a graphic resembling the movement of the newcomer in the cryptocurrency scene.
So should one buy or sell ZEC? I am nobody that can foresee the future or is living off his money earned over trading coins – but I will still share my opinion on this subject.
Currently, there are just a few thousand of ZEC – 8465. Soon there will be more than that created daily. This is something that might suppress the price of a single ZEC.
Like Bitcoin, Zcash is getting mined. This means, that for each block added on the ZEC Block chain, ZEC will be rewarded. To minimize the risk, ZCash announced that they will have a slow start. Meaning, that the amount of ZEC each block gives will be nearly zero and increase to 12.5 ZEC after 34 days. This means, that end of the year there will be about 350,000 ZEC end of the year. now if we consider that the market cap of leading coins is $946,270,579 for Ethereum, $186,579,814 for Litecoin and $62,264,927 for DASH, let us see some possible ZEC price scenarios:
If 1 ZEC = 0.1 BTC, then the market cap end of the year would be about 350,000*700*0.1 = $2,450,0000
This can be seen as undervalued in comparison to the other respected coins.
To assume a fair market cap is hard and even impossible, but let it be $100,000,000. Then the price should be about 0.4 BTC per ZEC….We let the predicted price of BTC Price be $700.
Right now ZEC is also dropping because miners are racing to mine and instantly sell everything for ETH or BTC. This way they are securing their earnings, though they are pushing the price of ZEC down.
Conclusion ZEC: This is why I personally expect ZEC to fall a little in the next coming weeks.
ZEC Cloud Mining Possibility
There are already some highly knows websites offering cloud mining services. If you are interested in such, we have already made a review on mining Zcash on Genesis Mining.
I hope this article helps some of you. If you have any questions please feel free to ask them in the comment section below!