Grayscale: Zcash's privacy features may be just what is needed in the AI era, if the market share rises to 5% of value or a 9x increase

Comparing news, Grayscale released a Zcash research report stating that as the development of AI brings new methods of financial monitoring, the privacy characteristics of Zcash may become a necessary function in the AI era. Zcash blocks transactions through zero-knowledge proofs, hides the sender, receiver, and amount, and has cash-like privacy properties. Currently, Zcash blocks about 90% of the transaction volume, and the blocked supply is about 4.2 million ZEC (25% of the circulating supply).

According to Grayscale, Zcash's market capitalization is around $8 billion, accounting for only 0.6% of its classified “monetary cryptoassets” sector (with a total market capitalization of $1.4 trillion). If this sector accounts for 5%, the value of ZEC will be 9 times what it is today. The report argues that the market's current valuation of Zcash reflects the assumption that “privacy will remain marginalized,” and that if investors ultimately believe privacy should receive a modest premium, the current valuation may be undervalued. In terms of risk, the report mentions long-term risks such as regulation and quantum computing, but believes that Zcash's shielding technology and selective disclosure tools provide a path for compliance.