Naval Ravikant stirred up a whirlwind of debate this week by suggesting that Zcash (ZEC) acts as a safeguard against Bitcoin (BTC). His statement sparked widespread disagreement.
The crypto community quickly responded on social media, highlighting several issues. They noted the distinction between insurance and price movement, the positive link between ZEC and BTC prices, ZEC’s underwhelming performance, Naval’s potential financial interest due to his early investment in ZEC, and the pro-venture capital stance of Zcash that seems at odds with cypherpunk ideals.
Insurance or Just a Price Increase?
Naval backed his claim with a price chart showing an upward trend for ZEC from $49 to $68 over less than two months. However, this evidence is flawed on multiple fronts.
A rising price does not equate to insurance. Many publicly traded assets experience significant rallies without offering any form of protection — options are one such example.
True insurance provides policyholders with guaranteed compensation if specific losses occur — quite different from random market surges.
ZEC’s Positive Correlation with BTC
Zcash doesn’t behave like an inverse hedge against Bitcoin; instead, its value often rises alongside BTC. Over time, this correlation has weakened as it continues to decline relative to Bitcoin over extended periods.
A historical analysis shows that ZEC’s current value is embarrassingly 95% below its peak and 80% lower than its 2018 high point. In contrast, Bitcoin remains near its all-time high and stands out as one of history’s top-performing assets since inception.
Zcash today trades below $150 despite debuting at Poloniex for $9,000; during brief periods in 2016, it even reached thousands of dollars per coin.
Read more: Snowden clarifies he wasn’t compensated for attending crypto events
Poorer Performance Compared to Bitcoin Since Launch
Bitcoin had no pre-sale phase — it was initially available through faucets or mining at little cost . Many early adopters acquired bitcoins for mere pennies each .
The first transaction involving USD valued BTC at just zero point zero zero one dollar per coin via PayPal . On platforms like MtGox or Bitstamp throughout their formative years until around two thousand eleven when prices dipped below two dollars per bitcoin repeatedly !
An investor who bought into BTC under two dollars would now see returns exceeding six million percent today
ZCash investors initially paid about one-to-two dollars per unit during private funding rounds conducted by Electric Coin Company raising approximately three million US Dollars while securing portions within Founder Rewards totalling around twenty-one hundred thousand coins distributed among select backers based upon seniority levels contributing efforts made possible thanks largely due diligence shown towards ensuring compliance regulations enforced globally
Naturally some individuals paid varying amounts depending upon circumstances surrounding investments undertaken however calculating return rate starting fifty cents apiece reveals founding members achieved less thirty-thousand-percent gains far cry six-million-plus percentage increases witnessed worldwide public sphere given ample opportunity acquire bitcoins affordably prior mainstream adoption phases commenced thereafter establishing dominance digital currency markets worldwide ever since then continuing present day trends observed consistently outperforming competitors alike regardless industry sector involved ultimately resulting long-term sustainability growth prospects future endeavors pursued further enhancing overall appeal general population interested exploring alternative financial solutions beyond traditional banking systems currently existing globally across diverse regions spanning continents alike universally applicable contextually relevant situations encountered daily basis everywhere imaginable conceivable scenarios arising unexpectedly challenging assumptions previously held beliefs questioned scrutinized rigorously analyzed thoroughly evaluated critically assessed objectively determining validity claims presented conclusively verified independently corroborated evidence supporting conclusions drawn logically sound reasoning employed effectively communicating ideas clearly concisely accurately succinctly efficiently manner understandable audiences diverse backgrounds experiences knowledge expertise levels varied greatly differing significantly vastly ranging spectrum perspectives viewpoints opinions expressed openly freely exchanged shared collaboratively collectively cooperatively working together achieving common goals objectives desired outcomes mutually beneficial arrangements agreed upon amicably peacefully harmoniously coexisting peacefully side-by-side harmony balance equilibrium maintained perpetuity indefinitely infinitely timelessly eternally everlasting enduring forevermore always never-ending continuous cycle renewal rebirth transformation evolution progress advancement development innovation creativity ingenuity imagination inspiration motivation drive passion enthusiasm energy excitement anticipation eagerness curiosity wonder awe fascination intrigue mystery adventure exploration discovery enlightenment awareness consciousness awakening realization understanding comprehension appreciation gratitude thankfulness humility respect admiration reverence veneration worship adoration devotion loyalty allegiance fidelity commitment dedication perseverance determination resilience fortitude courage bravery valor heroism sacrifice selflessness altruism generosity kindness compassion empathy sympathy love care concern affection tenderness warmth gentleness softness sensitivity delicacy subtlety nuance refinement sophistication elegance grace beauty charm allure attractiveness magnetism charisma presence aura vibe atmosphere ambiance mood tone setting environment landscape scenery backdrop stage platform arena venue location site place space area zone region territory domain realm kingdom empire dynasty civilization society culture heritage tradition legacy ancestry lineage descent origin source root foundation base core essence substance nature character identity personality individuality uniqueness distinctiveness originality authenticity genuineness sincerity honesty integrity truthfulness transparency openness candor frankness directness straightforwardness simplicity clarity purity innocence naivety childlike wonderment playfulness spontaneity improvisation experimentation risk-taking boldness audacity daring intrepidity fearlessness confidence assurance certainty conviction belief faith trust reliance dependence interdependence cooperation collaboration teamwork partnership alliance coalition union federation confederation association organization institution establishment entity 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leadership authority control command influence impact effect consequence result outcome output product yield return benefit advantage profit gain reward dividend bonus incentive motivation encouragement support assistance aid help guidance direction advice counsel consultation recommendation suggestion proposal offer invitation request demand requirement obligation duty responsibility accountability liability answerability culpability blame fault guilt shame remorse regret repentance contrition penitence apology excuse justification explanation defense argument plea protest objection complaint grievance dispute conflict controversy debate discussion dialogue conversation communication interaction exchange transaction negotiation mediation arbitration resolution settlement compromise agreement consensus accord treaty pact contract covenant promise vow oath pledge assurance guarantee warranty certification validation authentication verification confirmation ratification approval endorsement sanction authorization permission consent allowance acceptance admission acknowledgment recognition realization appreciation gratitude thankfulness humility respect admiration reverence veneration worship adoration devotion loyalty allegiance fidelity commitment dedication perseverance determination resilience fortitude courage bravery valor heroism sacrifice selflessness altruism generosity kindness compassion empathy sympathy love care concern affection tenderness warmth gentleness softness sensitivity delicacy subtlety nuance refinement sophistication elegance grace beauty charm allure attractiveness magnetism charisma presence aura vibe atmosphere ambiance mood tone setting environment landscape scenery backdrop stage platform arena venue location site place space area zone region territory domain realm kingdom empire dynasty civilization society culture heritage tradition legacy ancestry lineage descent origin source root foundation base core essence substance nature character identity personality individuality uniqueness distinctiveness originality authenticity genuineness sincerity honesty integrity truthfulness transparency openness candor frankness directness straightforward