Grayscale Research published that Zcash (ZEC), as a decentralized digital currency with privacy features similar to Bitcoin, is expected to pose a real challenge to Bitcoin’s network effects. Grayscale believes that Zcash possesses advantages such as financial privacy that Bitcoin lacks, ongoing development to address network security risks like quantum computing, and cross-chain connectivity through “intention” technology. These characteristics may become increasingly important in the AI-driven surveillance era.

Grayscale pointed out that ZEC has risen about 19 times in the past year, but its current market capitalization is still less than 1% of Bitcoin’s. The institution believes this indicates that there is still competitive space in the field of currency-like crypto assets, and Zcash may continue to expand its market share. However, Grayscale also emphasizes that investing in Zcash is high-risk, and even if it successfully challenges Bitcoin, it is unlikely to rise in a straight line.