Analysis of Zcash (ZEC) includes technical and fundamental aspects and risks, here is an in-depth look:
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1. Fundamental Analysis
1. Privacy
• Zcash focuses heavily on privacy: it supports “shielded” transactions using the zk-SNARKs protocol, which means that the sender, receiver, and amount can remain hidden.
• This gives it a strong advantage among users wanting privacy, but at the same time raises regulatory risks.
2. Token Supply (Tokenomics)
• The maximum supply of ZEC is 21 million coins, similar to Bitcoin.
• It uses proof of work (PoW) with the Equihash algorithm for mining.
• Mining rewards have been halved (“reward reduction”) which may decrease the new supply over time.
3. Support from Investors and Ideological Narrative
• Some investors see ZEC as “insurance against censorship” or as an asset for privacy protection, especially amid increasing discussions of digital surveillance.
• It has been noted that some whales have accumulated ZEC, which gives a significant boost to trading volume.
4. Regulatory Risks
• As privacy coins, ZEC may face regulatory pressure in some areas. Its privacy may raise concerns for regulatory authorities$ZEC
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