Prices for the privacy-focused virtual currency Zcash (ZEC) have risen sharply in recent days following the announcement by its creator, Electric Coins Co (ECC), of plans to launch an official wallet and transition to a less energy-intensive mining mechanism in the years 2022–2024.
Zcash’s price has risen by more than 50% since its debut on November 19th, reaching a six-month intraday peak of $303.95 on November 25th. It is as opposed to a closing price of $158.94 on the day of the release.
ECC wants to release three main products between 2022 and 2024, per its roadmap: an official ECC wallet, Proof-of-Stake consensus, and Interoperability.
Zcash 2022 Goal
ECC intends to produce a commercial wallet with features such as governance, staking and delegation, messaging, and more. The release is part of the developer’s plan to play a major role in developing Web 3.0, or fully decentralized internet. As per ECC, operations on Web 3.0 can be confidential, with collateral maintained in shielded pools sans revealing ownership and loans repaid without revealing any data.
As we know them, banks and credit card firms are becoming less and less relevant. “Even without a custodian, anybody can generate returns,” the developer stated. The adoption of a system like the Cosmos stack to facilitate proof of stake brings with it an opportunity. Main opportunity to make ZEC more transferable across chains and encourage innovation.”
ECC will switch from its present proof-of-work (PoW) protocol to proof-of-stake (PoS). As a result of the shift, ZEC holders will be able to become validators or miners on the blockchain as a result of the shift. Their processing power will be directly proportional to their stake. PoS miners are constrained to executing a proportion of transactions that matches the number of tokens they own. Rather than using energy to tackle the PoW problem (the original consensus mechanism in Blockchain technology).
This will substantially lower the amount of energy consumed in mining and the utilization of single-purpose equipment. This includes the application-specific integrated circuit (ASIC) computers, which are employed in the PoW computing process. Furthermore, it will eliminate the need for consumers to sell their tokens to cover the high energy expense associated with the computing process required in PoW. It would reduce ZEC volatility and price declines. Countless miners abandoned the slower graphic processing unit (GPU) to mine Zcash due to ASIC’s higher processing capability. This results in a two-year decline inactivity.
Shift to PoS
The shift could result in far fewer Zcash in current circulation when users stake their holdings. For the reason that they become validators and miners of operations on the ZEC network. This has resulted in higher bitcoin purchases and price increases over the past week.
The creator and CEO of venture capital firm Digital Currency Group, Barry Silbert, tweeted a day following the ECC’s statement that he would buy more Zcash coins. He highlighted the cryptocurrency’s restricted quantity of 21 million.
Zcash is Poised for Correction
It is based on the cryptocurrency’s highs and lows since its launch. According to cryptocurrency writer Ali Martinez’s technical analysis on cryptobriefing.com, “the privacy coin could be heading for a small correction prior to actually surging higher. “As prices struggled to overcome resistance, the Tom DeMark Sequential indicator gave a sell signal on ZEC’s four-hour chart. ”
“Given the mounting optimism surrounding Zcash, a conclusive four-hour candlestick close above $262 would be wise.” Breaking through such a critical barrier point might instill investor confidence and continue the upswing to new highs. “ZEC could then jump to $304 or even retest the $373 high set in mid-May,” Martinez noted.
Ananthi Reeta, a cryptocurrency trader, and writer anticipates an optimistic trend for Zcash in 2021. The trader said that ZEC appears to have a wonderful future ahead of it in 2021. It could be seen that ZEC continue to flourish as a result of continuous advancements in the ZEC community the larger crypto market.
“If investors turn against cryptocurrency, the bears could take over and force ZEC out of its upward position,” she said. In layman’s terms, the value of ZEC might drop to around $84.17 [by 2021], indicating a bearish indication. ”
While Reeta’s long-term ZEC price forecast is bullish, with a strong probability of hitting $266 in 2021. This will only occur if the cryptocurrency breaks through psychological obstacles.
Several analysts predicted a long-term uptrend for Zcash coin. This includes algorithm-based value prediction service provider Wallet Investor and Coin Price Forecast.com, predicting a bullish trend.
Therefore, the price of Zcash is not likely to plummet between 2021 and 2025, as per Wallet Investor’s projection. The cryptocurrency is likely to hit $277.92 in 2022 and climb steadily over the next five years, with an average price of $540.26 predicted for November 2026. In early November 2026, the price of Zcash might reach a high of $2,066.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”