ZCash halving is one of the most discussed crypto topics: though we already know the ropes of how it happens with Bitcoin, this event is still intriguing. So, let’s point out how it works and what to expect.
Halving is a process repeated every few years. Its objective is to complicate the extraction of coins, to reduce the reward for miners and prevent the inflation in crypto sphere. This means of regulation helps to avoid the “death” of the cryptocurrency Even though some alternative cryptocurrencies use emission restrictions for this goal, Bitcoin halving is not the only one in the industry.
Last June, Electric Coin Company, which released a resonant and popular payment method, presented a plan for the development of Zcash cryptocurrency.
The plan turned out to be revolutionary: the developers set out to completely rewrite the protocol of the coin blockchain and update the network of anonymous cryptocurrency. In many ways, this may be due to criticism of the coin: after all, some critics even speak out that technical problems lie at its core. Nevertheless, Zcash remains a convenient and anonymous crypto, breaking the theses of these opponents.
We all are under strange coronavirus circumstances that leave us in the depth of uncertainty. Though we can’t name the exact date of the next ZCash halving, it is supposed to happen this autumn.
Zcash Halving Outcomes
Now 20% of the commissions of miners goes to the development of the project, but in a year the developers will stop receiving their share from the extraction of digital coins.
Zcash creator Zuko Wilcox invited the community to find a new way to finance the development of the project. Despite the fact that halving can positively affect the rate and capitalization of cryptocurrencies, not all members of the Zcash community were delighted with the innovations.
After voting among the community members in December 2019, it was decided to reduce the block reward to 6.25 ZEC. But when one door closes, another opens. ZCash halving will have its benefits for the newcomers! In principle, halving is destined to increase the cost of a ZCash mining. As the complexity of the network grows, and the reward decreases, the actual cost of mining also increases. This leads to an increase in the market price of each coin, be it ZCash or, for example,BTC.
Bitcoin and Zcash Halving: the Advantage of the Latter
The entire cryptocurrency community is looking forward to the Zcash halving which will be held this year at block 1,046,400.
Unlike bitcoin, Zcash currently has a very interesting position. So, despite the current fall, he has a chance to repeat the explosive growth of Bitcoin of past years. And this is the main difference from the Bitcoin halving 2020.
Why do experts and strategists consider this option?
It’s all about cryptocurrency shortages; scarcity creates value. At the moment, the cost of Zcash is falling below $ 50 for 1 ZEC coin. At the same time, by the end of the halving process, growth and renewal of historical highs will have become very likely.
As users already know, both ZEC and BTC are mined. That is why after halving there will be a lack of coins. However, many ZEC owners do not sell them and invest with a planning horizon of 5-10 or more years. In such situation, the price of the ZEC token can go up.
Zcash Halving 2020: Make a Step or Lose the Chance
Halving is a natural process for any cryptocurrency’s development. Expertly managed, it results in unbelievable benefits. Halving of ZCash, one of the best anonymous crypto tokens, will result in a raise in income. NOWPayments, the easiest and the most secure platform to accept your payments in ZEC. With the help of our service all the tools could be easily and wisely used. Besides, don’t miss the opportunities of the ZCash and enjoy our giveaway on Twitter.
Disclaimer: This article reflects its author’s opinion only and is not financial advice. We take no responsibility for the results of any trader’s decision or action.