What's stopping the value of zcash from soaring?

I noticed that many are against the development fund, I even understand, as there must be a lot of inefficiency, but I believe that this is not what hinders the value of zcash.

Suppose the development fund is not renewed, what do you think will happen? Yes, nothing will happen, or rather what will happen is that the speed of development will be slowed down, as no programmer will want to waste time working without earning a salary for it. Zcash will be left behind, with almost no developers left, only those who take development as a hobby will be left.

In my opinion, what holds back the value of zcash is precisely the risk, as Zcash involves many risks, as governments want privacy to audit negotiations, and to be able to pressure exchanges to hand over the identity of individuals who are acting outside the law.

Bitcoin, in the beginning, when the government found it difficult to identify individuals, there was pressure to reject it from the government, putting pressure on the banks. Here in my country where I live, banks simply canceled the accounts of those who were involved with Bitcoin and cryptocurrencies, but over the last few years, the banks themselves are starting to allow the purchase of Bitcoin. Isn’t that strange? Before they were against it and canceled accounts, now Bitcoin has become a differentiator for banks.

What holds back the value of zcash is the risk of regulation, the risk of governments persecuting those who own private cryptocurrencies, the government does not want privacy, which is why they want to do away with physical money and implement CBDCs.

A good number of Zcash holders are disappointed, they don’t understand how Zcash doesn’t increase in value, they imagine that if they had invested in another cryptocurrency they would have been much more successful. One way to take out frustration is to blame someone, but they don’t blame those who are actually holding back the value of zcash, they want to blame the founding team and developers.

but explain to me why Moneró is stronger than Zcash?

Monero is completely private, while Zcash has two sides of the coin (privacy and transparency), those who really want total privacy, the most radical, will give much more value to Monero, the chance of the government identifying individuals is minimal and Monero fans know this and the community becomes stronger, but there is also the risk that at some point no government will accept Monero, there is also the risk that criminals will give preference to Monero for money laundering, as there is no way to identify the individuals, soon the government will be completely against any type of privacy coin, forgetting that Zcash serves the government’s needs. ok it can be private, but it needs a certain transparency to identify individuals, that’s why binance has not yet removed Zcash, as we have this difference of being private, but we have the transparent side to adapt to government requirements. but no one appreciates this, the wave of the moment is different.

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The only thing I’m against in the development fund is inefficiency, there had to be greater rigidity, demand for results. I believe that the development fund is necessary for the evolution of Zcash, the developers, media sponsorships and broad publicity are necessary, but there had to be greater rigidity, greater monitoring, as money is scarce, even more so now with Zcash nearing lows. the founding team and developers, the entire team that makes the Zcash system work need to be well aligned, avoiding unnecessary fights, avoiding everything that demotivates and everything that appears to Zcash holders, it needs to function like a large corporation, with a high professional level, I believe that Zcash already has this level, the only thing missing is efficiency in spending the development fund and seeking other sources of income.

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The market cap of Bitcoin is the outstanding bounty to take it down.

Zcash’s market cap should be the same, but there’s sell pressure from all angles and the dev fund mechanism, especially at current prices, has created the unfortunate downward spiral.

Why would anyone invest in an org or project that doesnt even value its own asset.

Letting Zcash stand on its own without leeching directly at the protocol level would likely allow Zcash to spread its wings as a pure privacy preserving SoV without constant dump pressure.

People point to Monero because its actually used in external markets.

Zcash cannot be used because it can’t even hold its value. Any new entrant looks at the historical chart and moves on to Monero. The downward spiral, as mentioned above, is due to the way Zcash operates and devalues its own asset.

Privacy is becoming a bigger and bigger topic and Zcash needs to be in the conversation. However, it will never be part of the conversation if you have block rewards going to hardcoded addresses at the protocol level that will dump on you.

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This is the money (no pun intended) quote.

You can have a thousand Zcash medias attempting to educate people on le epic ZK tech but charts don’t lie. It I see something that has a trajectory that edges asymptomatically towards zero, I’m going to X out of that chart faster than the Zcash media “team” can dump their generously gifted tokens.

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Block reward ZEC have been inadvertently designed to work as a USD short. The results speak for themselves. What do I mean? USD short

  1. Org denominates salaries/ grants in USD
  2. Hedges (sells) block reward ZEC at point in time X, to acquire USD to cover liability
  3. Org waits for duration of time Y, then un-hedges back to ZEC/ pays USD denominated liability in ZEC

If ZEC drops during the time duration Y, org has effectively gamed Zcash buy selling high and buying low.

If ZEC increases, org isn’t forced to buy back higher - instead their newly acquired (or excess) ZEC from duration Y can be paid to the USD liability. The higher that ZEC might have moved, the easier it is to pay the USD liability. Buying back ZEC higher is the point of last resort.

When the Org buys back/ un-hedges on marginal increases or decreases, there is little impact to Zcash markets.

This all goes without even talking about ZEC as a Bitcoin short. We can thank the ASIC PoW mega miners for that market disposition.

Short the USD has been a slowly losing battle since Zcash was launched:
image


This is possible, but the opposite could be true also. Protocol encoded development teams is part of the unspoken “I Agree” terms of service for any ZEC buyer/ holder

The assertion here is that some degree of indiscriminate project team funding is good because it assures that Zcash always has a baseline of human capital who are working to grow/ improve/ build/ plan for the future.

Without a Dev Fund, Zcash risks a more severe human capital loss than what it just experienced in the past couple years of the bear market.

As mentioned ZKP is a growing crypto sector theme, so we’ve got to acknowledge the risk that other projects wouldn’t mind (they would probably be happy) poaching Zcash protocol engineers to begin working on their competitor projects.

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It certainly was not at launch and in initial years, where devtax was claimed to being limited to 10% (20% of first 4 years of supply). Giving up on that claim meant that no limit on devtax (or antipoachingtax) would ever be taken seriously.

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