An analyst at the investment firm behind the Bitcoin Investment Trust (OTC: GBTC) predicted that the Zcash price could reach $60,000 by 2025 if investors begin to use it in place of traditional offshore banking services.
Last week, Grayscale Investments published the investment thesis for the Zcash Trust, the latest fund in its lineup of cryptocurrency-based investment products that includes the wildly-popular Bitcoin Investment Trust and the Ethereum Classic Trust.
In the 20-page thesis, Grayscale analyst Matthew Beck writes that that Grayscale believes Zcash could prove to be the “first globally accessible ‘offshore’ investment opportunity” — the proverbial Swiss bank account in one’s pocket.
Beck notes that the offshore banking sector has declined in recent years due, in part, to “added pressure on tax evasion and increased competition.”
He writes that it is conceivable that Zcash, a privacy-centric cryptocurrency that has been lauded by NSA whistleblower Edward Snowden, has the potential to not only fill the void left by the declining offshore banking sector but also expand this opportunity to everyone — not just wealthy elites.
According to his calculations, the Zcash price could rise significantly if the asset can capture even a small percentage of the wealth that is currently stored in offshore accounts.
At one percent of the global offshore wealth, the Zcash price should reach $6,289, a more than 1,500 percent increase from its present level. If Zcash can manage to capture 10 percent of offshore wealth, it could surge as high as $62,893.
This, of course, would be no small feat, particularly given the reservations that many people have about Zcash’s “trusted setup.” Developers have sought to mitigate this risk by holding increasingly-larges “ceremonies,” but critics say allege that the risks associated with a trusted setup are untenable, no matter how small.
Moreover, Zcash faces stiff competition from Monero, whose market cap is currently three times the size of Zcash’s and is already experiencing increasing adoption in darknet markets.
Finally, innovations such as Bulletproofs and the Lightning Network could enhance the privacy of Bitcoin transactions and ultimately reduce demand for privacy-centric altcoins.
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