Connect with us

Crypto

Is This 1 Cryptocurrency Up 1,160% a Buy? | The Motley Fool

Published

on

Is This 1 Cryptocurrency Up 1,160% a Buy? | The Motley Fool

This coin’s wild run probably has more gas in the tank.

The privacy coin Zcash (ZEC 26.18%) is currently leading the crypto market, rising while everything else is struggling. It ripped a gain of 1,250% in the last three months alone, vaulting back into the top tier of coins by market value.

Is this strength the result of durable value creation, or is it a hot stove waiting to burn those who invest?

Image source: Getty Images.

Why Zcash is valuable

Unlike many other cryptocurrencies, Zcash is obviously valuable.

Advertisement

At a high level, Zcash inherits Bitcoin‘s (BTC 0.79%) supply policies, which is a massive point in its favor. Like Bitcoin, Zcash has an unchanging hard cap of 21 million coins that can ever exist, and a mining-based issuance schedule that halves its reward about every four years, steadily reducing new supply entering the market and creating the conditions for scarcity to boost its price over the long term. Zcash’s second halving arrived in late November 2024; historically, at least in the case of Bitcoin, the 18 months following the halving tend to be very profitable times to be a holder.

It’s undeniable that Zcash’s recent surge has been visible enough to overtake the leading rival privacy coins by market cap, and it may portend a broad revival in privacy-focused assets.

Zcash Stock Quote

Today’s Change

(-26.18%) $-172.88

Current Price

$487.56

Advertisement

On that front, under the hood, the technology of this chain is a major appeal. Zash popularized the use of zk-SNARKs, a form of cryptography that lets the network validate transactions without revealing amounts or counterparties on-chain. In a nutshell, when used properly it’s possible to use Zcash in privacy such that nobody will know who you’re transacting with or for how much. That privacy utility is very different from Bitcoin’s transparency, and it is precisely what some investors are seeking as on-chain activity becomes more surveilled by numerous actors.

Advertisement

If you squint, the investment thesis for Zcash looks a lot like a privacy-tilted cousin of Bitcoin’s scarcity story, with decreasing new supply and an expanding set of holders who value the asset’s specific use case.

Bitcoin Stock Quote

Today’s Change

(-0.79%) $-834.41

Current Price

$105113.00

The policy headwind is probably a dealbreaker

Now, let’s take a look at the devil’s advocate view of this coin.

From that perspective, Zcash’s strongest differentiator, its privacy features, is also its heaviest baggage. Policymakers around the globe have repeatedly targeted privacy coins with new regulations or outright bans, which constrains crypto exchange listings, liquidity, and mainstream adoption, especially among the largest potential adopters like financial institutions.

Advertisement

These aren’t solely academic concerns. Japan effectively banned privacy coins from domestic exchanges in 2018, leading platforms to pull Zcash. South Korea required exchanges to delist privacy coins in 2021 as part of tightening anti-money-laundering rules. Europe has also dealt with intermittent delistings and shifting regulations, leading to a frustratingly unpredictable access environment. It’s probable that the E.U. will prohibit privacy coins altogether, contingent upon implementing specific regulations.

So whereas Bitcoin has a scarcity narrative that is increasingly institution-friendly, Zcash’s privacy design makes it far more likely to be left out in the cold, especially if regulators continue to aggressively disfavor or attempt to stomp out the privacy coin segment as a whole. That doesn’t negate Zcash’s utility, but it does mean the path to durable adoption depends on a shift in regulatory disposition as a whole, which does not appear to be happening, and might not ever.

Moreover, this asset’s price is obviously on a hot streak right now. Another near-term risk is that buyers today could be stuck underwater for an uncomfortably long time if sentiment suddenly cools or exchange listings tighten again.

Therefore, Zcash probably isn’t the right pick for most investors, even if it will probably continue to gain in value quite quickly for a while longer. A reasonable plan if you are still intrigued but (appropriately) cautious is to treat Zcash as a niche position, sized small, and accumulated gradually on weakness.

If regulators eventually allow access to this coin to widen, Zcash could compound in value significantly thanks to its Bitcoin-like issuance. But if compliance frictions re-intensify or remain prohibitive — as they most likely will — expect long, choppy stretches without much reward once this rally fades.

Advertisement
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Crypto

Jim Rickards Asked Robert Kiyosaki to Read One Manuscript, Then His View of Global Finance Changed

Published

on

Jim Rickards Asked Robert Kiyosaki to Read One Manuscript, Then His View of Global Finance Changed

Key Takeaways

Why Did One Manuscript Change Robert Kiyosaki’s View?

Robert Kiyosaki, the author of the best-selling personal finance book Rich Dad Poor Dad, said an advance manuscript of “The Entropy Trap” shared by Jim Rickards prompted him to rethink how he views global finance. Rickards is an economist, lawyer, and financial commentator known for writing about currencies, debt, and systemic market risk. Kiyosaki said the early reading changed his perspective on where the financial system may be headed.

The reaction was framed around a warning about financial change. The book, written by Mickey M. Maini, “blew my mind and opened my eyes to what & why global financial change is coming,” Kiyosaki described. His comments focused on what he described as a shift in the rules behind wealth, assets, and trust.

The central claim is that wealth could move away from people relying on traditional financial assumptions. Kiyosaki asserted:

“The informed will be tomorrow’s ULTRA RICH. Todays uniformed operating by the old rules of money… will become the new poor.”

The Warning Behind the Claim

The warning centers on assets that depend on trust, including U.S. bonds, exchange-traded funds (ETFs), and mutual funds. Kiyosaki framed those instruments as vulnerable under the financial shift he says is coming, placing commonly held investment products at the center of the risk.

That claim is severe, but he presented it as a warning rather than a proven outcome. He also pointed to large bondholders, including Japan, saying they have already started dumping U.S. bonds. He did not provide supporting data in the statement.

The acclaimed author shared:

Advertisement

“Message from book… ‘All assets that require trust, assets that most people have… such as U.S. bonds, ETFs, mutual funds will be flushed down toilets, all over the world.’”

The broader conflict is whether traditional financial assets remain reliable under the conditions Kiyosaki described. His framing divides investors between those preparing for a changed financial system and those still operating under assumptions he says may no longer hold.

What Still Needs to Be Proven

A planned August study session could clarify the warning Kiyosaki described. He said his study team would examine the message and that Rickards may join, though the evidence behind the claims has not yet been laid out.

For now, the warning rests on Kiyosaki’s account of a manuscript that changed his view. He urged readers to prepare, writing:

“I want you to be one of the world’s new rich.”

What remains unknown is whether market data, policy moves, or investor behavior will confirm the risk he described.

His recent commentary has focused on what he describes as fragility in the global monetary system, particularly around the U.S. dollar. He has pointed to rising debt, central bank policies, and inflation as risks that could trigger a sharp market downturn.

Advertisement

Alongside those concerns, he has repeatedly highlighted bitcoin, gold, and silver as alternative stores of value. In his view, those assets may help reduce exposure to traditional financial instruments during periods of currency weakness and market turbulence.

Continue Reading

Crypto

Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

Published

on

Strategy Is No Longer Just Going to “Inoculate the Market,” Selling Crypto May Be Much More Common. Here’s What That Could Mean for the Stock | The Motley Fool

When Strategy (MSTR 0.69%) sold a modest amount of Bitcoin earlier this year, it was a noteworthy development given that the company’s business has centered around buying up as much of the cryptocurrency as it can, and vowing to never sell. And it often boasts of being the largest corporate holder of the digital currency.

The company brushed off the sale of 32 Bitcoins, with management saying it simply wanted to “inoculate the market.” Well, now it appears that Strategy is doing much more than just that, and there could be more significant cryptocurrency sales in the future.

Image source: Getty Images.

Strategy unveils a Bitcoin monetization program

On June 29, Strategy released a framework going forward that it says will “enhance liquidity, preserve long-term Bitcoin exposure, and support long-term value creation for shareholders.” Among the notable components is its Bitcoin monetization program.

Within that program, the company says it may sell some of its cryptocurrency holdings for multiple reasons, including to fund a USD reserve, fund dividends or interest expense, or to fund repurchases of digital credit securities or common stock.

Advertisement

While the company says it remains committed to Bitcoin for the long term and it’s the company’s “primary treasury reserve asset,” it’s a significant change of course for Strategy, which was previously heavily against ever selling the digital asset.

Strategy Stock Quote

Today’s Change

(-0.69%) $-0.69

Current Price

$100.08

The stock is as risky and volatile as ever

Whether or not Strategy buys or sells Bitcoin doesn’t change the fact that this is a highly risky and speculative stock to own. While crypto fans may be disappointed in the company’s change in strategy, selling Bitcoin will likely not be enough to make the business any better or worse as an investment.

In just the past 12 months, the stock has plummeted a whopping 75% as volatility in digital assets has drastically weighed on its earnings, with the company incurring $12.8 billion in losses over the trailing 12 months, on revenue of $490 million.

That’s not likely to change significantly, even if Strategy offloads some of its crypto holdings, because with such a large exposure to Bitcoin, how the cryptocurrency performs will inevitably impact the company’s bottom line in a big way. This year, the leading cryptocurrency is down 28% as investor excitement around it has largely cooled off, which has proven disastrous for Strategy’s stock as well. And at this stage, there’s little reason to anticipate a recovery anytime soon.

Continue Reading

Crypto

An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

Published

on

An Easy-to-Miss Radio Traffic Jam Is Behind Many Home WiFi Slowdowns

Key Takeaways

Your WiFi can feel rock-solid at midnight and oddly sluggish by breakfast, even when you have not touched a single setting. The culprit is often outside your walls: a crowded slice of public radio spectrum where your router has to negotiate space with every nearby network, plus a grab bag of household gadgets that leak interference. Add peak-hours demand and the signal-blocking quirks of building materials and weather, and “slow internet” starts to look less like a billing issue and more like an invisible traffic problem you are forced to share.

When WiFi slows down without warning

One day your home WiFi feels snappy, the next it drags, even though your router hasn’t moved and your internet plan hasn’t changed. That swing is real, and it’s usually not your imagination or a “bad day” from your ISP. WiFi lives on shared airwaves, and those airwaves get crowded, noisy, and sometimes just plain finicky.

Think of your connection as a conversation in a busy room. Your laptop and router may be talking just fine, but the room itself can fill up fast with other chatter. What looks like a mystery slowdown is often the result of invisible competition and interference that changes hour by hour.

The battle of competing networks

Most homes still rely heavily on the 2.4 GHz and 5 GHz WiFi bands, which are unlicensed spectrum in the US. That “free for everyone” reality is convenient, but it also means your network shares space with your neighbors, their smart TVs, their work laptops, and every nearby router doing the same thing.

Congestion has a rhythm. During common work-from-home and school-from-home windows, especially 8-10 AM, and again in the evening 6-10 PM, more devices are streaming, video calling, syncing, and downloading updates. Even if you pay for fast broadband, your WiFi link can become the bottleneck when the local radio environment gets packed.

Interference inside your home

Your own house can sabotage you. A microwave is the classic culprit because it can leak noise near 2.4 GHz, exactly where many WiFi networks still operate. Older cordless phones, some baby monitors, and even dense clusters of Bluetooth gadgets can add more clutter, especially in smaller apartments where everything sits close together.

Advertisement

Then there’s physics. Concrete, metal, and even water (think aquariums or thick pipes in walls) absorb and scatter radio signals. A router shoved behind a TV, tucked into a cabinet, or stuck in a far corner forces your devices to “hear” through more obstacles, lowering speeds and making dropouts more likely.

Weather, channels, and what you can do tonight

Environmental changes can matter too. Higher humidity and rain can slightly increase signal loss, and shifting temperatures can change how radio waves propagate around a neighborhood. You might never notice on its own, but paired with congestion it can tip a marginal connection into a frustrating one.

The 2.4 GHz band is also channel-limited. In the US there are 11 channels, but only 1, 6, and 11 don’t overlap. Many routers default to “auto channel,” so nearby networks can hop around trying to escape interference, sometimes creating instability. Practical fixes: prefer 5 GHz (or 6 GHz if you have WiFi 6E/7 gear), place the router centrally and higher up, and use a WiFi analyzer app to pick a less crowded channel instead of leaving it on auto.

Continue Reading
Advertisement

Trending