This $ 700 million cryptocurrency is about to see its first halving six months after Bitcoin

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In May, Bitcoin underwent its long-awaited block reward halving. The number of coins mined per block has been halved, leading many to expect a massive increase as BTC’s market supply would technically have to decrease relative to demand.

And it did … a little bit. Since the halving, Bitcoin has gained 70 to 80% against the US dollar, with growing demand for the cryptocurrency increasing its value.

For this reason, analysts are keeping an eye on the first halving for Zcash, the Bitcoin fork launched by Zooko Wilcox that focuses on user privacy. Any halving or reduction of the block reward has a diminishing effect on the market for a cryptocurrency, so the first halving of Zcash should be important.

Like Qiao Wang, a prominent cryptocurrency analyst and DeFi investor recently declared:

“Also a friendly reminder of the ZEC halving in one month. Unlike the third BTC halving, which was completely overestimated, the first ZEC halving is probably important. “

There are a few days left until the halving of ZCash

Less than four days to go until the ZCash halving. Once halving is activated, miners of the $ 700 million cryptocurrency will see their bulk rewards halved, then “halved.”

In theory, this should result in higher prices – a 50% decrease in block rewards will mean miners will have 50% less cryptocurrency to sell on a daily basis. Assuming ZEC demand holds, the coin should increase in price over time, barring any supply shocks.

According to Ryan Watkins, a Messari analyst, however, may not be so.

He recently stated that the chain data suggests there is a reason to believe that miners understand only a small amount of the sales pressure that has dramatically crashed ZEC over the past few years:

Assuming miners sell all of their ZEC as they mine it, they have historically only accounted for less than 5% of ZEC’s daily trading volumes over the past year. The measure isn’t perfect, but it’s a good enough proxy to show that miners may not be what’s holding ZEC back. “

For context, the altcoin is known to drop without taking any offers after trading higher than Bitcoin when it launched four years ago.

Even still, many are convinced that ZEC has a valid long-term value proposition. The pseudonym DeFi and crypto investor “DgnTec” recently stated:

“I’m changing my mind about ZEC. The need for a private SOV is even more evident in DeFi, where whales trade outdoors, susceptible to trailblazers and virtue-signal observers. “

Ryan Selkis, CEO of Messari, he echoed this comment in October. He said he thinks ZEC has the potential to be a “trojan horse” winner in this bull cycle due to a clean “opt-in / opt-out privacy pool that builds momentum with regulators while addressing fungibility. in the long term (unlikely to be resolved in BTC) “

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