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Zcash, once a niche privacy-coin actor, has vaulted into the spotlight. The price of Zcash increased above $700 on Sunday, which sparked disputes online between Bitcoin and Zcash fans.
Just a day before, the price of Zcash had dropped to $598, but now it has made a strong comeback, and people have started discussing privacy-oriented assets making a comeback.
Bitcoin fans are upset because the price of Zcash has gone up a lot
The Bitcoin fans who always believed BTC was the only real coin and everything else was a scam had a particularly hard time accepting the fact that Zcash rose above $700. They could not explain why the price of Zcash increased so rapidly in such a short timeframe, as they were accustomed to seeing slow, steady growth in Bitcoin.
The CEO of Bitwise, Hunter Horsley, said the critics are having a hard time discussing the Zcash gain because it goes against everything they believe makes a cryptocurrency real or important. Many Bitcoin supporters shared their surprise, anger, or concern about Zcash online, sparking a debate about what constitutes a “real” cryptocurrency in the community’s eyes.
Some Bitcoin fans, like Bit Paine, even accused the Zcash rally of being a “coordinated pump and dump.” They referred to the coin’s 1,500% increase since October and stated that it is due to the actions of big investors or companies pushing the price up for their own benefit. Additionally, they argue that small investors who buy in late will lose a significant amount of money if the price drops too quickly, making this gain risky, unfair, and contributing to the overall instability of the crypto market.
BTC fans want all other coins to work just like theirs does, with growth being safe and predictable. On the other hand, privacy coin enthusiasts are okay with the rapid fluctuations in Zcash’s price because the coin offers users more control and privacy than Bitcoin. The argument isn’t even about money, but about what makes a coin real or trustworthy.
Secret coins fans are happy because the price of Zcash has gone up a lot
Most people in the Bitcoin community criticized Zcash for its rapid rise in popularity. Still, privacy supporters argued that these criticisms lacked foresight, as they overlooked the coin’s technology, purpose, and growing popularity.
The CEO of RPC provider Helius, Mert Mumtaz, said many of the BTC fans sounded more like conspiracy theorists because their attacks lacked financial analysis. He explained that Zcash, like BTC, helps investors make money, but it goes beyond just that and offers privacy and security to its users. At a time when governments, large companies, and hackers are closely monitoring all activities related to Bitcoin, Zcash is protecting the identity of its users during transactions.
Zcash became the largest privacy-focused cryptocurrency as of October, when it passed its eight-year high and overtook Monero (XMR) in market capitalization. At the time of writing, it had achieved a market capitalization of over $11.2 billion, positioning it close to overtaking Cardano (ADA) and entering the top 10 cryptocurrencies globally.
Investors and companies have also begun to show interest in Zcash, with Arthur Hayes, founder of the BitMEX exchange, stating that his family office, Maelstrom, holds Zcash as its second-largest liquid asset, after Bitcoin.
When Zcash held its rally, Leap Therapeutics rebranded to Cypherpunk Technologies (a Zcash treasury-backed company) and got funding from Winklevoss Capital. This significant investment increased the price of its shares by over 170%, and Zcash fans say it’s proof that their coin is gaining even more popularity by the day.
The rise of Zcash also sparked discussions about incorporating privacy features into Bitcoin. People wanted to reactivate a Bitcoin opcode called OP_CAT, so the coin could support advanced privacy functions and other features that Zcash already provides.
For privacy supporters, the implementation of Zcash could serve as an example of how to utilize other cryptocurrencies, prompting a new way of thinking about privacy protection and blockchain adoption.
The Zcash rally in the cryptocurrency community has become a national symbol, and the coin’s fans are reveling in the attention it is getting. They say Zcash demonstrates that privacy coins can coexist with Bitcoin and propel the space forward.
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