Like the Bitcoin halving, the Zcash halving is an important crypto event that affects the supply and potential value of the crypto asset. Zcash halving is an event when the block reward for Zcash miners is reduced to half of the previous value.

 

Zcash is a crypto asset that utilizes blockchain technology and has high privacy security features. In the crypto world, the Zcash halving has several important impacts, including the effect on supply and demand.

 

Now, to understand more about what Zcash is, from the difference between Bitcoin halving to the effect of Zcash halving on the market and ZEC price, see the full review below.

 

What is Zcash Halving and its History

 

Quoting id.bitdegree.org, Zcash halving is a phase where the rewards for ZEC (Zcash crypto) miners are cut in half which happens once every 4 years.

 

While the concept is similar to Bitcoin halving, Zcash has unique features that make it different and interesting to understand in more depth.

 

To date, Zcash has only experienced one halving event on November 18, 2020. On that day, the reward for ZEC miners was reduced to 3,125 ZEC per successfully mined block.

 

Difference between Zcash and Bitcoin Halving

Quoting gate.io, Zcash, and Bitcoin have much in common as they initially share the same code and have the same limited supply of tokens. However, Bitcoin has been around much longer than Zcash, and in terms of market capitalization and dominance.

 

Nonetheless, Zcash’s block time of about 75 seconds surpasses Bitcoin’s block time of about 10 minutes per block, making it more scalable and faster at executing transactions.

 

All of this makes their halving events differently impact the market. Here are some differences between Zcash and Bitcoin halving that are important to know, among others:

Impact on Crypto Market

 

Halving is a carefully studied and anticipated event in the industry as it has the potential not only to increase token prices, but can also have a significant effect on the entire crypto market depending on its level of dominance.

 

Bitcoin dominates the crypto market by about 50%. Meanwhile, Zcash dominates by about 0.04%. Therefore, if the price of ZEC experiences a dramatic increase, then it will not have as big of an impact as Bitcoin on the crypto industry due to its lower dominance.

 

Growth Potential

 

Although both tokens experienced large bullish cycles during, before, or after the halving, there is still plenty of room for growth and development in their price movements.

 

However, Zcash has only experienced one halving event, while Bitcoin has already experienced three halving events, with another scheduled for 2024.

 

Zcash has more room for exponential growth than Bitcoin because it has more halving events than Bitcoin.

 

Forecasts and Predictions for the Next Zcash Halving

 

You should know that the next Zcash Halving is expected to occur in 2024.

 

The previous Zcash halving will occur just before the total Zcash supply reaches 21,000,000 units, which is the maximum amount that will be printed and available in the market.

 

Although the exact date is not yet known, it is expected that the Zcash halving will occur shortly.

 

Effect of Zcash Halving on ZEC Market and Price

 

Quoting the id.bitdegree.org page, when discussing Zcash halvings and Zcash halving dates, one of the things that cannot be ignored is the price of ZEC, or more precisely, how ZEC behaves and changes when a halving event occurs.

 

To date, only one ZEC halving has occurred, which was on November 18, 2020. This is when the first Zcash halving occurred.

 

Interestingly, there was no significant change in the asset price, and there were no sudden spikes or drops in price.

 

Typically, only cryptocurrencies like Bitcoin show a direct impact of halving their price fluctuations. Smaller projects tend not to “make much of a splash” in the market based on halvings.

 

This is the first official halving for ZEC. It is difficult to predict how future ZEC halvings will affect price changes.

 

Significance of Zcash Halving for the Crypto Community

 

Quoting the id.bitdegree.org page, the last aspect to consider about the ZEC halving is its impact on the crypto community, especially for miners and investors. When the first ZEC halving occurred, the annual inflation rate of the ZEC coin dropped to 12.5%.

 

As time passes and more halvings occur, this inflation rate will continue to decrease, according to the network’s specially programmed structure. This is good news for investors in the project.

 

Those who hold ZEC and have faith in the project may assume that the price of the original token will also increase. Halving aims to enhance this concept of scarcity; with a decrease in new supply, if demand remains or increases, the price will likely follow suit.

 

However, for miners, the Zcash halving could be less encouraging news as an increase in the asset’s price will result in a halving of mining rewards. However, in the case of Zcash, it appears that this has not happened, at least not immediately after the halving.

 

For those looking to buy some ZEC coins or start their crypto mining activities, understanding the Zcash halving is an important part of the process.

 

While this has yet to impact the asset’s price, it is only the first of several halvings.

 

Considerations for Investors and Miners

 

For investors, several considerations are important to know about how to utilize the Zcash halving in their investment strategy, including:

 

• Understanding the Potential Increase in Value: Zcash halving could boost ZEC prices due to a decrease in new supply. Investors must understand that this could be an opportunity to profit from holding ZEC over the long term.
• Measuring Risk and Reward: Investors need to do a careful risk-reward evaluation. While halvings can trigger price increases, crypto markets can be highly volatile. Having a clear exit strategy and considering portfolio diversification can help manage risk better.
• Conduct Fundamental Research: Investors should conduct fundamental research on Zcash before making an investment decision and understand the project well. This includes understanding the technology behind it, market needs, and future development plans.

 

Meanwhile, for miners, there are several things to consider regarding the Zcash halving, including the following:

 

• Prepare for a Drop in Rewards: Miners must realize that halving Zcash will halt mining rewards. That means that their income from ZEC mining will also decrease. Developing a financial plan that considers the potential drop in revenue can help deal with this period.
• Optimize Mining Efficiency: Optimizing hardware efficiency and operational costs becomes more important after the halving. Choosing more efficient hardware and minimizing electricity costs can help maintain mining profitability.
• Consider Diversification: In addition to mining Zcash, miners can also consider diversifying into other crypto mining or leasing their mining power to cloud mining services to mitigate the risks associated with declining Zcash rewards.

 

Conclusion

 

In conclusion, understanding and preparing for the Zcash halving is important for investors and miners in the crypto ecosystem. Halving significantly changes ZEC supply and demand, affecting prices and mining profitability.

 

Therefore, it is important for all parties involved to understand the potential impact of this event and strategize accordingly. Furthermore, it is also important to constantly monitor developments and changes in the crypto ecosystem.

 

That’s because the crypto industry is constantly evolving and changing, with the Zcash halving being just one example of the various events that could affect the market. Investors and miners can make better decisions by staying up-to-date on the latest news and trends.

 

Buy Zcash on INDODAX!

 

Well, now you understand what Zcash is, starting from the difference between Bitcoin halving and the effect of Zcash halving on the market and ZEC price.

 

Furthermore, if you want to buy Zcash bitcoin (Zec to IDR), you can buy it on INDODAX.

 

For information, INDODAX is a platform for buying and selling bitcoin and other crypto assets which is also a pioneer in crypto asset trading in the country.

 

In addition, INDODAX continues to be committed to providing investors with easy access to the crypto asset market.

 

Furthermore, as a disclaimer, it is important to remember that, like any other investment, investing in crypto assets also has its risks, including fluctuations in asset value and high levels of volatility.

 

Therefore, it is important to research and understand the crypto assets you want to buy well.

 

So, let’s start investing in crypto assets now only on INDODAX!