In the rapidly growing cryptocurrency market are things like at the races: everyone wants to know which horse is better to put.
Last fall, Grayscale Investments, an asset management subsidiary of Digital Currency Group and one of the largest venture firms in the field of cryptocurrencies added to its portfolio a third Fund, the virtual coins – anonymous digital currency zcash for. At the beginning of this year, the company posted an investment return, in which he justified the decision.
Matthew Beck, the author of the document and the employee Grayscale, using the financial modelling showed that by 2025 the price of zcash for tokens can exceed $ 60,000, which means an increase of about 150 times the current rate (about $ 300 at the time of writing article).
However, this conjecture has a rather serious caveat: Matthew Beck suggests that by the year 2025 will be stored zcash for 10% of all offshore funds in the world.
If by 2025 zcash for will account for only 1% of all offshore funds, the price of the currency can reach $ 6,000.
Wanting to insure against possible misunderstanding, the author in capital letters emphasizes: “ASSUMPTIONS about FUTURE GROWTH in PRICES ZEC ARE PURELY HYPOTHETICAL AND ARE NOT a GUARANTEE THAT the PRICES REACH SUCH values”.
Grayscale is sponsoring several investment trusts specializing in crypto-currencies, or funds whose shareholders receive a share in the pool of digital assets. In addition to the zcash for, Grayscale controls funds of Bitcoin (the first cryptocurrency) and Ethereum Classic, breakaway Ethereum (the second market capitalization of the platform based on the blockchain). The company earns on investors engaged cryptocurrency mania.
The need to understand the issues of security, management and completion of the audit may look intimidating for investors who are eager to learn, investing in any cryptocurrency could be most beneficial (or Vice versa). Through its funds, Grayscale strives to provide wealthy individuals (accredited investors or to persons with an annual income of more than $ 200,000 for the past two years or a net income of more than $ 1 million) access to certain cryptogram, the price of many of which in recent months has soared to impressive heights.
Below are three arguments that Grayscale results in his new article to substantiate his breathtaking insights.
1. Zcash for similar to Bitcoin
First, the developers zcash for were not re-invent the wheel, but simply adopted the properties of Bitcoin, which well proved in work. It concerns the economic model (limited offer, deflationary model), which can potentially make zcash for a means of saving capital, like gold, as well as the technology itself (decentralization, the inability to change entries in the block chain), Bitcoin has ensured his place on top of cryptomeria with the greatest of all cryptocurrency market capitalization.
Allegedly Grayscale, zcash for has the same characteristics as precious metals, BTC [Bitcoin] and ETC [Ethereum Classic], so as a long term investment it can protect you from inflation.
However, Bitcoin can clone anyone. To copy the database code and place the ICO (initial coin offer) is quite simple. What distinguishes zcash for from Bitcoin and other cryptocurrencies?
The developers offered the world zcash for advanced technology in the field of privacy protection: zk-SNARK. It allows any user on the network zcash for checking the legitimacy of financial transactions even though part of the blockchain or the General register of payments zcash for remain encrypted, hiding the information about the sender, recipient, and amount of transfer. According to greyscale, this is a significant advantage over bloccano Bitcoin in which this information is stored in the public domain. “We believe that ZEC will be the first public opportunity to invest in “offshore” or a Swiss Bank account right in your pocket, so to speak,” – according to Grayscale.
In other words, the cryptocurrency is now able to provide the same level of privacy, which traditionally provided by opening Bank accounts in foreign jurisdictions – for example, in Switzerland. In fact, Grayscale declares that zcash for can be considered as an improved system compared to the Swiss banks, because the network is decentralized and accessible to less wealthy people. In the system of zcash for no single point of failure. As in Switzerland, here the success of the investor depends on the success or failure of individual organizations, Economics or the political regime, and this is the main argument in support of sensational Grayscale hypotheses on the likely price increase to $ 60,000.
An additional advantage of the privacy provided by zcash for, is that zcash for any token can be traded just as any other token zcash for. Anonymous (private) transactions allow users to hide information about payments and therefore do not allow anyone to distinguish the coin based on the history of their use. This property, known as interchangeability, “we need to [currency] has become a liquid means of exchange,” says Matthew Beck.
So traditionally work cash: you don’t know who paid these bills before they hit you. “As the network zcash for not disclosing information about the source or previous use of ZEC, the cost and risks of adoption of any token of the same ZEC,” writes Beck. In network with Bitcoin, in turn, the origin of the coins are always transparent, which opens opportunities for discrimination against them.
Grayscale results and other reasons to bet on the success of the zcash for: experienced team working on the project, and partnership with J. P. Morgan Chase, as well as the potential of using zcash for international trade.
Of course, there are reasons to stay away from cryptocurrencies. And it’s not only price fluctuations but also the risks in the area of security, the inability to say exactly whether the currency accepted by the market and the lack of established regulations. Nevertheless, they may be of interest to investors not afraid of risk.
One of such investors is Linda Xie (Xie, Linda), founder of the cryptocurrency hedge Fund Scalar Capital and a former employee of a Bitcoin exchange, Coinbase, and in her own words, she is absolutely optimistic about the future of the zcash for.
“Anonymity is one of the most underestimated and poorly perceived by the majority of people the benefits of cryptocurrencies,” she says.
And in the company of Grayscale seems to agree with this statement. “ZEC can become the dominant digital currency for private storage of funds and transactions, writes Matthew Beck in his article. On the other hand, BTC could still be the dominant digital currency, but in this case, users will likely have to sacrifice your privacy to the extent that, as she will get more and more recognition from users and regulators around the world.”
Grayscale said that they plan to provide public quotation of stock prices for their investment trust zcash for by the end of 2018. In addition, by the end of the first quarter of this year, the company plans to create five new cryptocurrency funds (four on the basis of certain assets and one mixed).