The Long-Term Bullish Case for Zcash (ZEC)
On June 26, 2019, tech tycoon and fervent cryptocurrency supporter John McAfee took to Twitter to express his views on which coins will be the top gainers in the next bull run. According to the tweet, privacy coins “will be the big winners.” He also added that “Privacy coins are the future.”
The prices of many solid alt coins were hit ten times as bad as Bitcoin during the Bear market, yet many are based on sound economics, especially in the Medical field and in the Privacy coins which we all know will be the big winners. Privacy coins are the future.
— John McAfee (@officialmcafee) June 26, 2019
The tech magnate’s claims can sometimes border outrageous, including one where he bet that Bitcoin will hit $1 million in 2020. Nevertheless, we looked deeper into his claims and we’re surprised to discover that there’s a growing trend in developed countries around the world that supports McAfee’s position on privacy coins. In this article, we explore that trend and build our long-term bullish case for Zcash (ZEC).
Governments of Developed Countries Implementing Strict Regulations to Control Cash Payments
Many people prefer to transact using cash for several reasons. Aside from ease of use, another big reason is because cash transactions are private. A cash payment made by Alice to Bob cannot be surveilled by any third party such as corporations or governments. This prevents big companies from collecting private data about the transaction. In addition, since the government cannot trace the deal, they cannot tax the financial activity.
This is one of the biggest reasons why governments of developed countries around the world have stepped up their efforts to limit cash transactions.
For instance, people residing in France are no longer allowed to make payments of over 1,000 euros in cash. On top of that, cash deposits or withdrawals of over $10,000 euros in a single month will automatically alert certain anti-money laundering agencies.
Spain also has banned cash payments that exceed 2,500 euros. Neighboring country Italy has a lower limit at $1,000 euros.
Australia is following the footsteps of France, Spain, and Italy. The country’s Liberal Party government made the announcement that starting July 1st, it will be illegal to purchase anything above $10,000 AU using cash. That number is roughly equivalent to $7,000 USD.
Sweden has taken cashless transactions to a whole new level. Its citizens have taken it upon themselves to slowly eliminate cash payments to become the first-ever cashless society. According to a Riksbank report, only 15% of payments involve cash in the retail sector. In addition, by 2023, businesses in the country will stop accepting cash payments.
In the U.S., there are no restrictions on cash purchases. However, deposits or withdrawals above $10,000 must be accompanied by a currency transaction report from the bank.
McAfee Might be Onto Something
It appears that John McAfee was right to bet on privacy coins. Developed countries across the globe are beginning to eliminate cash by greatly reducing the amount that its citizens can spend.
Currently, it seems that governments are using terrorism and crime as the primary motivators to limit cash transactions. So far, the people have yet to question these motives. That’s because they have not yet fully realized the implications of a cashless society.
Once cash is eliminated, the government as well as corporations will be able to trace all of your activities. Companies might use the data to sell to advertisers, whereas politicians could use the data just like how an analytic firm used Facebook data to influence the 2016 U.S. elections.
That’s just the tip of the iceberg.
When cash is out of the equation, governments can tax all of your transactions since they are traceable. What’s even worse is that governments will have the power to freeze your account and leave you penniless for violating a particular law. While this sounds far fetched to residents of Western countries, this can be a reality in authoritarian countries like China or India for instance.
Privacy Coins Like Zcash Negates Total Government Control
McAfee may have seen the same writings on the wall when he claimed that privacy crypto tokens like Zcash will be the future. He understood that governments will try to control money and once they do, the people will have no other recourse than privacy coins. Zcash is one of the top dogs in space.
Zcash uses a technology known as zero-knowledge proofs. Apparently, the math behind the technology is so advanced that only a few people in the world have an understanding of what goes behind the curtains.
With zero-knowledge proofs, transactions are completely private. No third party entities like governments or corporations can peek into the transaction and trace the sender and the receiver. The technology behind Zcash can prove that the transaction occurred without divulging any other information.
Thus, using Zcash enables you to skirt around existing and possible future laws on cash limitations. You can send $10,000 or any amount to someone without anyone knowing about it. Corporations cannot steal the data and governments cannot tax the transaction. More importantly, privacy coins are your way out in case governments begin to freeze the accounts of its citizens.
McAfee was onto something when he said that “privacy coins are the future.” As governments continue to implement stricter laws on cash payments, many people will eventually be forced to accumulate privacy coins like Zcash to keep their activities hidden from the eyes of third party entities. This is our long-term bullish cash for Zcash.