Grayscale Zcash Research: Private currency ZEC has the potential to challenge bitcoin network effects

On 26 August, according to the latest greyscale study, Bitcoin, with its strong network effect, currently occupies 93 per cent of the market value of the encrypted market, squeezing other competing public chains for a long time. However, Zcash has differential features that are not available in bitcoin, which include trade privacy protection, future enhanced quantum resistance security, and the ability to cross-chain interactions based on intent technology. The value of privacy attributes is further highlighted in the larger context of AI ' s large-scale monitoring data. Bitcoin depends on a strong network effect, so any digital currency that competes with it must have the “essential” core function of the user. Zcash provides financial privacy and other characteristics that may be needed by users in the AI era. We believe that the currency is still undervalued and is expected to continue to take market shares. Data show that ZEC prices have increased 19-fold over the past year, but the overall market value is less than 1 per cent of bitcoin, and the market has not yet fully priced its private narrative value. At the same time, Zcash would not simply reset the path of Bitcoin, but would be the main private track out of the independent street, offering another asset option for the encrypted market, which is also expected to reach one tenth of the BTC market value over the long term (i.e. $8,000)。