Payments

Blockchain October Hype Meter: Zcash for all!

  • It was a much more stable month for blockchain after the insanity that went down in September.
  • An anonymus cyrptocurrency was launched, plus the start of (gasp!) an actual incumbent blockchain transaction.
close

Email a Friend

Blockchain October Hype Meter: Zcash for all!

Every month we publish our Blockchain Hype Meter, a curation of blockchain and cryptocurrency articles in mainstream media. An event that caught our eye was the debut of a new cryptocurrency called Zcash at the end of October.

Typically, this isn’t noteworthy — cryptocurrencies launch all the time. But Zcash had an exciting first day of trading. Zerocoins, the coin Zcash released, had a day low of $32,000 and a high of over $2 million a coin. That’s right, there was a $1.9 million spread between the day’s high and low.

Here’s the chart showing the movement since launch day.

1_50200027_zec_btc_market_-_poloniex_bitcoin_cryptocurrency_exchange

The highs and lows of Zcash can be attributed to two factors: supply and demand. A little over 100 zerocoins were available on day one. 300 more were added on day two, and 80,000 will be available by the end of November. I didn’t pay much attention in my ECON 101 class, but I remember something like more supply leads to lower prices or something like that.

But price stability may not be the biggest issue facing Zcash and users.

Here’s the difference between the Zcash and other cryptocurrencies in the company’s own words:

“Unlike Bitcoin, Zcash transactions can be shielded to hide the sender, recipient, and value of all transactions on the blockchain. Only those with the correct view key can see the contents. Users have complete control and can opt-in to provide others with their view key at their discretion. Zcash transactions do not depend on the cooperation of other parties.”

Zcash uses encryption to hide transfer information, creating untraceable global instant payments. I’m sure people will use this level privacy to make anonymous donations to their local animal shelter instead of laundering money, buying illegal products and services, and funding terrorism.

Government officials were already calling to ban the anonymous cryptocurrency before it was even launched. Stefano Quintarelli, Italian IT expert and member of Parliament, expressed his view in a recent blog-post.

Here’s the translation:

“An anonymous currency exists and is cash. But that ‘does not allow, unlike cryptocurrencies, to be exchanged from one side of the planet in zero time, and in unlimited quantities. For all these features a completely anonymous cryptocurrency has all the credentials to become the tool of choice of crime payments of money laundering and financing terrorism.”

Quintarelli is calling for a ban on Zcash, taking to Twitter the day before the launch:

stefano_quintarelli___quinta____twitter

So why so much talk about Zcash? Well, it just happened, plus it embodies  blockchain hype. People are clamoring to purchase the new currency, while others are trying to outlaw it. It’s unclear where the price will settle or if it’s even possible to ban a cryptocurrency that itself is encrypted. Sounds like lots of hype with little understanding of the future of the currency.

Without further ado, here’s the October Blockchain Hype Meter

It was a much more stable month for blockchain after the myriad of September announcements. Stable doesn’t mean less coverage, though. There were articles and small happenings, but no crazy events like digital wallets on satellites.

Along with the Zcash debut, Wells Fargo and ANZ tested distributed ledger technology. Visa and MasterCard announced blockchain initiatives for b2b transactions. R3 teamed up with blockchain provider Ripple and 12 global banks for blockchain enabled cross border payments. Walmart will be using blockchain to track pork in China ,as well.

And there was the start of (gasp!) an actual incumbent blockchain transaction. Commonwealth Bank of Australia, Wells Fargo, and Brighann Cotton have arranged a shipment of cotton from Houston to the Chinese port Qingdao to be delivered in November. When the 88 bales of cotton valued at $35,000 are scanned at the arrival port, smart contracts will trigger a blockchain-enabled fund transfer.

The Fed also got involved, finally taking a stand on blockchain by announcing an announcement to be released in December. Wait, what?

Notable Hype Articles (Total HYPE: 79)

Notable Not Hype Articles (Total not HYPE: 6)

October HYPE meter score

73 (d3fc0n2: Is there a DAO I can invest in?)

  • Change from September: -54

0 comments on “Blockchain October Hype Meter: Zcash for all!”

Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
Member Exclusive, Payments

How the global microchip shortage is affecting the payments industry

  • While chip-based payment cards face the biggest threat, experts say the only aspect of payments immune to the shortage is physical currency.
  • As banks look to address the problem, one of the solutions being discussed is extending payment cards' expiration dates.
Subboh Jaffery | June 20, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 8: Klarna and the future of BNPL, PayZen’s ‘Care Now, Pay Later’, and Mastercard’s ‘Smile to Pay’ system

  • This week, we discuss whether BNPL offers a sustainable business model for providers, and whether it’s even viable as a standalone business.
  • We also talk about PayZen’s ‘Care Now, Pay Later’ offering, as well as Mastercard’s ‘Smile to Pay’ system, and what it tells us about the future of privacy and security in payments.
Ismail Umar | June 17, 2022
Payments, Sponsored

International remittances: A money movement lifeline ripe for digitization

  • Digital transformation is simplifying how people move money around the world, yet barriers to international P2P transfers remain.
  • In honor of International Day of Family Remittances, Visa shares four tips for how policymakers can better streamline digital remittances.
Visa | June 16, 2022
Member Exclusive, Payments

Payments Briefing: PayZen wants to combat rising medical debt with ‘Care Now, Pay Later’ solution

  • This week, we explore how PayZen uses a variant of BNPL to tackle healthcare affordability in the US.
  • We also hear from Stax CEO Suneera Madhani on the gender gap in fintech.
Ismail Umar | May 26, 2022
More Articles