Early Bitcoin (BTC-USD) fans are turning to a secret token called Zcash (ZEC-USD) as the original cryptocurrency becomes too mainstream. According to The Wall Street Journal, famous investors are pouring millions into this privacy-focused asset. While Bitcoin has struggled with a price drop over the last year, Zcash has seen a massive jump of 1,140% during the same time. Many experts believe this shift is happening because the public nature of the original Bitcoin market has made it too easy for others to track your money.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Winklevoss Twins Buy Huge Zcash Piles
High-profile investors like Tyler and Cameron Winklevoss are leading the move into this private market. They recently put $50 million into a company that stores Zcash. Other big names like Barry Silbert think the current excitement feels like the early days of Bitcoin back in 2013. His firm, Digital Currency Group, has made the token one of its biggest holdings. These experts believe that since the government and big banks now track every Bitcoin move, true fans are looking for a way to stay hidden.
Zcash Hides Sensitive Money Moves
The technology behind this token allows people to send funds without anyone seeing who is involved. While Bitcoin records every transaction on a public list, Zcash uses a special type of encryption to shield the sender, the receiver, and the total amount. This feature is very attractive to businesses that want to keep their payroll and supplier costs a secret.
Tushar Jain, a co-founder of Multicoin Capital, stated that “Zcash is what bitcoin should be. It’s what bitcoin was originally meant to be,” because it provides the freedom that the original creators wanted.
Regulators Monitor the Anonymity Risk of Zcash
Even though the Zcash ZEC token price is rising fast, some people are worried that the secret nature of the token is a red flag. Governments worry that criminals could use the shielded transactions to hide illegal activity. However, the price of the token took off recently after the Securities and Exchange Commission closed a probe into the coin without taking action.
This decision has made investors feel more confident that the technology will be allowed to grow. Cameron Winklevoss mentioned that “This is not some newfangled project that showed up on the scene with a lot of buzzwords and marketing push,” highlighting that the coin has a decade of history.
At the time of writing, Zcash’s ZEC token is sitting at $519.71.
