Grayscale has released a research report on Zcash, highlighting how its privacy features could become essential in the AI era amidst the rise of new financial surveillance methods.
🔸 Zcash utilizes zero-knowledge proofs (ZK-proofs) to anonymize senders, recipients, and transaction amounts offering privacy characteristics akin to physical cash. Currently, shielded transactions account for ~90% of volume and 25% of the total circulating supply (4.2 million ZEC).
🔸 Grayscale categorizes Zcash within the "crypto-currency asset" sector, which has a total market capitalization of $1.4 trillion. $ZEC currently holds a 0.6% market share, equating to a valuation of ~$8 billion.
🔸 If its market share reaches 5%, Zcash's value could increase ninefold from current levels. The report suggests the market is currently pricing in the assumption that "privacy will remain marginalized" if this sentiment shifts, Zcash is currently undervalued.
👉 Grayscale's report is more than just an analysis; it is a carefully constructed investment thesis. The 9x scenario relies on the assumption that Zcash captures 5% of the crypto-currency segment an intriguing yet challenging prospect. While AI could act as a catalyst for privacy, regulatory and technological risks (such as quantum computing) remain factors to watch. Investors should read the report thoroughly and conduct their own assessments.
💬 Do you agree with Grayscale's thesis that privacy will become a "scarce commodity" in the AI era?
News is for reference, not investment advice. Please read carefully before making a decision.