(ZEC) Zcash Price Prediction & Forecast
[Updated 06 December 2018]
Thinking of investing in Zcash in December 2018? Here is our honest price prediction and forecast.
- Fundamental Analysis
- Technical Analysis
- Specialists’ Perspective
- Zcash Price Prediction 2018
- Zcash Price Prediction 2019
- Zcash Price Prediction 2020
- Zcash Price Prediction 5 years
- Our Prediction
Zcash is a privacy-focused cryptocurrency created by the Zcash Company — a team of top cryptographers, scientists, and blockchain developers including famed computer security expert Zooko Wilcox. The basic unit of the Zcash blockchain is the ZEC, a cryptocurrency that can be anonymously transferred near instantly to anywhere in the world for just pennies.
Like the rest of the cryptocurrency industry, Zcash (ZEC) has had a tough time throughout the 2018 bear market, losing more than 88 percent of its value between its all-time high and its 2018 low on Nov 25.
Beginning the year as the 26th largest cryptocurrency by market capitalization, Zcash has gradually managed to climb the ranks despite its market cap falling considerably.
Compared to its major competitor, Monero, Zcash has climbed seven places to now occupy the 19th position, whereas Monero improved from 13th to 12th place in the same time period. Despite seeing $2.3 billion deleted from its market cap, Zcash continues to remain relevant, demonstrating the coin’s staying power even in a harsh climate.
In 2018, Zcash remains a great choice for privacy-conscious crypto enthusiasts or those looking to hedge their risk in a falling market. Although massive gains are not expected as 2018 draws to an end, Zcash may be due for a considerable spike if the market recovers.In 2018, Zcash remains a great choice for privacy-conscious crypto enthusiasts or those looking to hedge their risk in a falling market. Click To Tweet
When it comes to the fundamentals, Zcash stands apart from most cryptocurrencies by offering a genuinely innovative solution to what was fast becoming an issue in the cryptosphere — privacy.
By allowing users to select between both shielded (private) and transparent (public) transactions, the coin is catered to a variety of users and use-cases.
Zcash (ZEC) was the first cryptocurrency to implement a new variant of zero-knowledge proofs known as zk-Snarks, allowing transactions to be verified without revealing the sender, recipient or amount on the public blockchain.
Throughout its brief three year existence, Zcash has managed to garner an impressive community of users, on average generating more transactions per day than its nearest competitor, Monero, based on the data from Bitinfocharts.
Although the Zcash (ZEC) price has witnessed an extreme crash since its January 2018 ATH, Zcash has continued to fortify itself over the fast several months, and recently activated its long-anticipated Sapling upgrade, drastically improving the efficiency of shielded transactions, paving the way for further expansion.
The privacy coin was also listed on two significant cryptocurrency exchanges recently, launching on Coinbase Pro on Nov 29, and was only the third virtual commodity added to the Gemini Trading Platform — a testament to its advantages over similar currencies according to Tyler Winklevoss, CEO of Gemini.
However, Zcash has also found itself the subject of controversy in recent times as it was discovered exactly how much the Zcash founding team earn as part of the founder’s reward, with CEO Zooko Wilcox thought to earn $3.65M annually.
Launching in Oct 2016, Zcash (ZEC) set off with an impressive start, initially entering the markets at over $5,000 before gradually falling to a more realistic $48 by December of that year.
Throughout the 2017 bull period, Zcash saw impressive gains, seeing its market capitalization exceed $2.6 billion for a brief period while the Zcash coin spiked to almost $1,000.
Following its Jan 2018 peak, Zcash, like the rest of the cryptocurrency market, began to experience a somewhat extreme crash, with the privacy-coin quickly losing 60 percent of its value in just a month, and failing to recover several times throughout 2018.
Today, the price of Zcash (ZEC) has fallen to under $70 as of writing, after losing almost half of its value in less than a month. The current trend for Zcash appears to be bearish, with the ZEC forecast looking unfavorable in the short term.
As Zcash (ZEC) is a privacy-coin, there has been a lot of speculation as to exactly how anonymous it is, particularly in comparison to fully fungible alternatives such as Monero.
The coin has also attracted attention from the United States Department of Homeland Security, which recently announced its intentions to develop a framework for monitoring the transactions of privacy coins.
LongForecast, a website specializing in making accurate forecasts over a variety of timescales, is extremely bearish on the future price of ZEC, expecting to it to continue its downward trajectory to close 2018 at just $55. In the long-term, LongForecast doesn’t expect Zcash to begin its recovery until 2022.
WalletInvestor is also bearish on Zcash, arguing that the coin has been stuck in a bearish cycle for the past 12 months, having a negative outlook for both its short and long-term prospects, expecting it to lose a further 90 percent of its value by mid-2019.
Dean Pappas, an advisor at networking startup Marlin Protocol, tells us that “Zcash has too many headwinds to face. You can see from the number of commits on GitHub that the project has hit a standstill and Zcoin is quickly outpacing them in innovation, it will continue to drop under $60 in the near future.”
TradingBeasts, on the other hand, appears to be one of the only voices still bullish on Zcash, predicting it will climb to reach at least $207 by January 2019, and gradually climbing over the coming years to reach as high as $388 by December 2021.
Zcash Price Prediction 2018
Having suffered heavy losses and due to the generally sour market sentiment surrounding most cryptocurrencies in 2018, it appears extremely unlikely that Zcash (ZEC) will make much of a recovery by year-end, instead likely to see its price fall to under $70 as the year closes.
However, despite Zcash witnessing absolute losses over the past year in what has been an unprecedented bear period, the privacy-coin is gaining relative strength, climbing the global market cap rankings as other coins are hit worse.
As Zcash (ZEC) moves into the final month of 2018, it appears to be trading in a downward channel, failing to retake previous peaks and consistently hitting lower lows. Until the global market sentiment improves, ZEC will likely continue to trade within this down channel and bounce from lower lows in the near-term.
Since all major supports have been broken, and sell orders massively outweigh buy orders as it stands, there is no telling how low the bottom of the downward channel is, but for now, it appears that seeing $50 by the end of 2018 is a realistic prospect.
Zcash Price Prediction 2019
With the Zcash (ZEC) price likely to enter 2019 well under $100, there is a small but non-zero chance that Zcash will continue to collapse over the next year, potentially falling under $22 by Q4 2019.
Whether Zcash (ZEC) manages to recover in the next year likely depends on several factors, the most prominent of which is entirely out of the control of the development team — market sentiment. If the global market sentiment does not improve, then the near-future looks bleak for practically the entire crypto market.
However, with its Sep 2018 Sapling update, Zcash (ZEC) has paved the way for compatibility with a much larger range of devices.
Prior to the advent of Sapling, shielded transactions required at least 4GB of memory to execute, a number Sapling reduced by 98 percent, making the task now feasible on mobile and other low power devices.
The potential to see Zcash used for mobile payments may become a big driver of its growth in 2019 once more developers have had the opportunity to design mobile wallets for the blockchain. As with many industries, targeting a more diverse audience is typically an excellent driver of growth.
We at BeInCrypto expect that Zcash is likely to experience a bearish first half of 2019 before experiencing potentially considerable gains as the Zcash ecosystem grows. We forecast a bullish maximum of $380 by Q4 2018, or as low as $22 in the same period if the bear period continues.
Zcash Price Prediction 2020
We expect cryptocurrency prices, on the whole, will be up significantly in 2020, with Zcash potentially entering the year at almost $400.
By 2020, the Zcash (ZEC) Sapling upgrade is expected to be in its near-final implementation and massively improved adoption is a realistic possibility if either the Zcash company or third party developers can release a successful mobile wallet.
Although vague, the recently published roadmap proposal from the Zcash company sheds some light on what we can expect from the project in the medium to long-term.
As of yet, the Zcash company or foundation have not published any firm details, but are said to be researching a variety of potential solutions to improve the scalability and programmability of the privacy coin, looking to boost its throughput and usability without compromising decentralization.
Of particular note, the Zcash company will stop receiving founder’s rewards in 2020, improving the mining rewards by 25 percent as the 20 percent founder’s reward is phased out. During this time, a renewed interest in Zcash mining is expected, potentially seeing the ZEC/USD exchange rate skyrocket back over $760.
Zcash Price Prediction 5 years
Coming off 2020 on a high, we expect that Zcash (ZEC) will begin to slow down in following years as the project stagnates, potentially seeing ZEC dip back below $760 as other more active projects pick up the pace.
The Zcash foundation has recently been carrying out investigations into proof-of-stake, indicating a switch from its current proof-of-work consensus mechanism may be on the cards. However, with several other major cryptocurrencies considering the same, we do not expect this change will influence the ZEC price significantly.
While we can be certain that competition among privacy-coins will only intensify over the next several years, which coin ultimately becomes the people’s choice remains uncertain. Numerous privacy coins have risen and fallen since Zcash was launched, but few have gone as far Zcash.
Here at BeInCrypto, however, we can’t help but think that Zcash will begin to stagnate after 2020 as the core team loses its primary source of funding — the founder’s reward. With the core team out of the picture, Zcash will have needed to achieve self-sufficiency to survive with only community assisted development.
For our overall Zcash (ZEC) price prediction, we at BeInCrypto strongly expect that ZEC will close 2018 on a value upwards of $50, a maximum of 40 percent lower than its current price.
Between 2019-2020, we forecast a significant recovery for the general crypto market, during which time Zcash will reach as high as $760 providing its expansion into the mobile space is well received.
As 2020 draws to a close, we expect Zcash will begin to lose momentum after losing the support of the Zcash company and foundation, an opportunity other privacy-coins will seize as they make moves to attract a larger share of the market.
In any case, the ability to mold and adapt to an ever-changing market environment will ultimately decide which cryptocurrencies are able to survive and which will be forgotten.
As is becoming clear in 2018, the future will likely be dominated by the coin with most appealing use-case, scalability and usability. While we think that Zcash certainly has the potential to stick around for the long term, we expect that 2021 and beyond will be a tough period for Wilcox’s creation.
|Period||Zcash Price Forecast|
|Best Case Scenario||Worst Case Scenario|
Nevertheless, investors should always do their own research and tread lightly before investing in cryptocurrency. The market is notoriously volatile, and anyone investing in Zcash should be prepared to lose their entire investment.
What do you think of our price prediction for Zcash (ZEC) in 2019? Do you think axing the founder’s reward will jack up the value of ZEC? Let us know your thoughts in the comments below!
Images courtesy of Bitinfocharts, Shutterstock, TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile.