ZCash (ZEC) rose strongly earlier today and posted a 20% price increase before receding some of that progress around press time. The cryptocurrency is currently at #67 in the coin market cap but got to as high as #65 at one point during the earlier price appreciation.
ZEC rose strongly earlier today, recording a 5-day high of $188.7 in the process. With this rise, the digital currency recovered somewhat from its big losses in the recent days that affected it alongside the rest of the coin market. It dropped from a multi-month high of around $212 to get to as low as $144 earlier in this week. However, today’s rise was a little motivating for the ZEC holder but most of the rise was later wiped out near the end of the last 24 hours.
The earlier price increase was initiated because of a new development in the ZCash ecosystem. The blockchain network is looking to move to a Proof of Stake (PoS) mining system from the more conventional Proof of Work (PoW). As a result of this, more and more investors are investing in the coin and they are looking to lock it in place for staking rewards. Miners currently dedicate expensive mining resources to mine the crypto in an energy intensive manner.
According to Electronic Coin Company, the main organization behind the development of ZEC:
“This shift will also increase the utility for ZEC through capabilities that include yield generation through staking and a possible path to on-chain governance mechanisms for ZEC hodlers,”
ZCash was launched back in late 2016 and since then its price index has fluctuated a lot, mostly towards the lower side. The cryptocurrency was started a privacy-focused coin inspired by the likes of Monero (XMR), Dash (DASH) and other such tokens that became earlier successes. While the project itself is fine and hasn’t had too much of big issues over the years, the cryptocurrency was and is still targeted heavily by regulators around the world. So much so that its exchange is banned and agencies like FBI of USA and FCA of America red flag people engage in trading with it.
So, the regulatory backlash has prevented the digital currency from taking a stronger foothold. So, while the regular crypto sector faces enough harrassment from the regulators itself, cryptos like ZCash, Monero and Dash face further problems because of their privacy features that make things more and more difficult for regulators.
But, the future holds great possibilities for the privacy-focused cryptocurrencies including ZEC itself. This is because most of the other crypto sectors are moving away from the roots of privacy and focusing instead on just supply constricting mechanisms. But, privacy was and always has been a core ingredient of the crypto sector, case in point the latest Taproot upgrade of Bitcoin that improved a few privacy features on the network and was agreed in consensus.
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