While cryptocurrency markets are crashing of late and the markets have been on a downward trend, a number of cryptocurrency analysts are still quite confident that the future holds strong gains. One such prediction has come from Matthew Beck, an analyst at Grayscale Investments who claims that the price of ZCash is likely to cross over $60,000 over the next seven years.
This long-term prediction is charted by the analyst and predicts $62,000 by 2025. This sounds like a long shot considering the fact that the current ZCash price is $449. However, when it comes to the cryptocurrency markets, such strong gains aren’t as far-fetched. Last year, Bitcoin jumped from $970 to $19,700 in less than a year’s time. Ripple grew by 36,000% - maybe this analysis too might be proven true in the long run.
Grayscale investments is the investment firm behind the Bitcoin Investment Trust and the Ethereum Classic Trust. However, Matthew’s analysis comes with many ifs and buts. The prediction of $60,000 for ZCash comes with the condition that this is achievable if people start using ZCash cryptocurrencies in place of traditional offshore banking services. This analysis from Matthew Beck came in Grayscale investments’ investment thesis that they wrote for the ZCash Trust.
In this 20 page thesis, Matthew Beck believes that “first globally accessible ‘offshore’ investment opportunity”. It is like having a swiss bank in your pocket. The offshore banking sector has been on a decline over the years under government pressures and practices of tax evasion. However, ZCash, as per Matthew Beck is the solution. ZCash has the potential to ‘fill the void’ that has been created by this decline in the offshore banking segment.
ZCash is a privacy focused cryptocurrency which has been backed by many major names including Edward Snowden - the wikileaks whistleblower. Beck states that even if ZCash can capture a small percentage of the offshore banking wealth, it would give a huge boost to the value of the cryptocurrency.
As per his estimates, if ZCash manages to claim even 1% of thee offshore banking markets by 2025, the price of the currency can shoot to $6,289. If it manages to claim about 5% of these markets, the price can shoot up to $31,447 and if, by 2025, ZCash claims 10% of the offshore banking markets, the price of its ZEC cryptocurrency can cross $62,000!
However, this is easily said than done. ZCash faces various challenges on its way to this sort of a growth. Considering that there are already fingers being pointed at the ‘trusted setup’ of the cryptocurrency, critics continue to believe that there’s a major risk associated with it. Moreover, another problem that ZCash faces is a stiff competition that Monero is giving them. Monero, which is another major name that operates in the same segment has a market cap of about three times that of ZCash.
Moreover, with privacy focused innovations coming to Bitcoin and other cryptocurrencies such as Verge, etc - it looks like the competition is only going to increase for ZCash. While a price of $60,000+ per ZEC token appears attainable on paper, it might be quite an uphill task for it to become reality!