Swimming pool image via Shutterstock
While promising, it may be difficult to determine whether ZEC's settling price signals an opportunity for investors, as experts appear split on the matter.
Since the start of trading on 7th January, the value of the tokens that power the zcash blockchain have mostly fluctuated between $44 and $48 on CoinMarketCap, a range that tightened further today when ZEC moved between $45 and $46.50.
At least in the short-term, ZEC prices have neared their true value, according to Tim Enneking, chairman of cryptocurrency hedge fund EAM. However, he said he would prefer to wait and see before backing the digital currency with investment directly.
"There's still time to decide whether ZEC is a good long term bet."
Excitement about the innovation fueled fervent speculation (ZEC reached roughly 3,300 BTC, more than $2m in October), before falling to $500 by the end of the month. By mid-November, 1 ZEC was trading for less than $100.
At the time of report, 1 ZEC was trading at $45.43.
This relative calm offers a sharp contrast to the wild volatility that ZEC experienced in the months since the cryptocurrency went live. (As previously reported, Zcash has managed to generate significant visibility through its use of zero-knowledge proofs called zk-SNARKs, a technology that lets users conceal the amount of transactions).
The price of the blockchain-backed asset zcash (ZEC) has shown signs of settling down over the last several trading sessions, experiencing only modest changes in its long volatile value.
Whaleclub COO Petar Zivkovski also struck a hesitant tone, arguing that he believes a nascent market and the strong chance of competition means there are too many unknowns at present.
"There's also still so little supply on the market that I don't think price discovery is really happening yet," he continued.
Over the last 30 days, the price of zcash has declined just 8%, hitting a high of $56 and a low of $34, according to data from CoinGecko – modest peaks and troughs by cryptocurrency standards.
Disclaimer: This piece is not intended to provide, and should not be interpreted as investment advice.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in the Zcash development team.
Overall, it seems the jury’s out on how much adoption the digital currency will enjoy and how well its price will perform going forward.
Yet that instability appears to be fading.
Japanese Billionaire: ICOs 'Democratize Venture Financing'
A Japanese billionaire and venture capitalist said this week that he believes initial coin offerings (ICOs) will become a significant source of funding for startups in the future.
Speaking with CNB
China Should Issue State-Backed Digital Currency ‘As Soon as Possible’: PBoC Researcher
A prominent Chinese researcher has urged the People’s Bank of China (PBoC)–the country’s central bank–to adopt a state-backed digital currency “as soon as possible.”
Huang Zhen, a researcher at Cen
Why China’s Crackdown on Bitcoin is Good for the Industry
Over the past week, many traders, analysts, and investors in the finance and cryptocurrency sectors have reacted to the crackdown on bitcoin by the Chinese government positively.
Investors such as
Ray Dalio Confirms Bitcoin is in a Bubble yet it may Become a Currency
A lot of self-professed financial experts do not like Bitcoin. That is not surprising, as promoting cryptocurrency would go against their own interests. Ray Dalio is the latest person to call
Ethereum, Bitcoin Prices Dip in Minor Market Pullback
The crypto market recovery stalled on Wednesday with the vast majority of coins posting minor pullbacks. The ethereum and bitcoin prices were at the head of the retreat, leaving neither able to hold a
Wall Street Journal Argues Bitcoin Is “Probably worth Zero”, Joins Obituary List
One of the Wall Street Journal’s most read articles of the day implies that bitcoin’s volatility reveals that the cryptocurrency is “probably worth zero.” The author of the piece starts by stating tha
Bitcoin Price Watch; Here’s What We’re Looking At Tonight
Wednesday has been a bit of a strange day in the bitcoin space so far. We are about to call time on the European session and the bitcoin price has spent the last hour or so in a phase of what looks
China's IT Ministry Backs New Blockchain Research Lab
Regardless of its recent crackdown on bitcoin exchanges and initial coin offerings (ICOs), China's government still appears committed to the potential of blockchain in other areas.
According to a r