What is ZEC coin? Is it worth holding long term?

ZEC coin, developed by the Zcash team, is a cryptocurrency. ZEC is a secure fork of Bitcoin and Monero using zero-knowledge proof technology. It improves and adds anonymity to the Zcash protocol. Through transactions, it enables complete decentralization of Bitcoin, Ethereum, and other public chains.

Additionally, ZEC allows anyone to issue their own tokens, including users using it to make money on the platform. It can also be used to pay for electricity bills or other fees without worrying about key leakage. (BlockBeats)

Is it worth holding ZEC coin long term?

Editor’s note: This article is authorized to be reprinted from BlockBeats (ID: blockbeats) and Odaily Planet Daily.

After experiencing a year of market decline and the rise of Bitcoin prices, people have “expectations” for the cryptocurrency ZEC coin, but it is not as good as it seems. Although the circulating supply of Zcash in the market has reached around 1 billion coins, its market value is far more significant, and it is less than twice the total value of the US stock market.

Therefore, we need to consider whether there is a correlation between the value of ZEC tokens and the short-term price. Why do we say this? First, let’s see how the project does it: “When I started researching this issue, I found a fantastic idea online- something completely decentralized, trustworthy, and easy to verify.” It would be meaningless without enough data to prove this, “I believe you will never understand what real money is.” (This is my personal opinion) Secondly, from a long-term perspective, holding any asset from the Zeppelin codebase is not an essential part of the investment portfolio. Also, these funds are not suitable for long-term holding. In addition, according to CoinMarketCap data, ZeckShield recently announced that nearly $400 million has flowed into the platform as of midnight on September 30, accounting for about 1% of the total amount.

Let’s look at another indicator-the exchange’s position (shown in the table graph); since traders tend to buy more ZEC, they may prefer relatively newer cryptocurrencies like ETH/USD.

In addition, there are two other factors worth considering:

1. User demand. Since 2017, Zcoin has been in a growth state and reached its peak in mid-November 2018 when its supply was 50,000. Over time, the network generates approximately 100 transaction fee income per month, half of which is used to reward community members and incentivize ecosystem developers, and the other half is used for repurchasing and destruction. While some investors believe that this situation is unlikely to change and many are concerned about its impact on ZEC Staking contract usage. However, even shortly after the issuance of ZEC, similar situations occurred, indicating that most people still choose to hold for the long term to avoid losses. For the majority of investors, it is necessary to buy at least 50% of ZECX by the end of 2020; however, given the recent market conditions, more and more users will hope to acquire more ZECO in the future.