Realized Capitalization: ZEC trading at a 60% discount

31 de jan. de 2019

ZCash ZEC is Bitcoin BTC 2.0 with advanced security features

Privacy coins occupy a niche within the cryptocurrency industry that many of the early adopters of cryptocurrencies consider being essential. After all, Bitcoin itself is often incorrectly referred to as an anonymous way of transferring value.

Bitcoin BTC privacy issues solved

ZCash was able to capitalize on the privacy issues of Bitcoin and forked its codebase. There are two types of transactions on its blockchain: shielded (using zk-SNARKS) and unshielded (just like on the original Bitcoin blockchain), making privacy an option for its users. Unlike Monero, ZCash supports multiple transaction types in order to allow everyone to choose between transparency and privacy depending on the use-case.

ZCash is now available on Wallstreet

There are a variety of potential market participants, among them hedge funds, venture capital firms, high-net-worth individuals, and pension funds that have access to trusted Over The Counter trading and custodial ZCash services:

-Circle Trade , Galaxy Digital, Cumberland, Genesis Trading, Greyscale Investments, Gemini

WHY ZCASH IS WORTH TWICE WHAT EXCHANGES STATE IT IS

Refer to the following graphs:

imgur.com/ScqPyJA

i.imgur.com/4Ql1DYN.png]http://i.imgur.com/4Ql1DYN.png

imgur.com/WD96mT8

Introducing Realized Capitalization (Coinmetrics)

The motivation for the creation of Realized Cap was the realization that “Market Capitalization” is often an empty metric when applied to cryptocurrencies. Market Capitalization, borrowed from the world of equities, is calculated for cryptocurrencies as
circulating supply * latest market price

However, unlike with equities, large fractions of cryptocurrencies tend to get lost, go unclaimed, or become otherwise inert through bugs.
By design, there is no Depository Trust and Clearing Corporation which keeps track of everyone’s stock certificates. So when tokens or virtual coins get lost, they stay lost. In BTC , this means that roughly 15% of supply is assumed to be permanently lost and out of circulation. Market Cap does not consider these nuances, instead aggregating the value of all coins ever mined and assessing them at the last market price.

So how is Realized Cap calculated?

The realized cap attempts to improve on the market cap by trying to discount coins that might be lost. Its crux is to value different part of the supplies at different prices, instead of using the daily close as market cap does.

For more information please refer to:

coinmetrics.io/realized-capitalization/