There's often something special about an asset that's able to sprint while others in its class are struggling. In the crypto market of late 2025, that sprinter is Zcash (ZEC 3.87%), and it's leaving pretty much everything else in crypto in the dust, with its price climbing by 845% this year alone (as of Nov. 10).
This formerly niche privacy coin is now angling for something closer to an encrypted money narrative, as it directly copies Bitcoin's (BTC +0.65%) scarcity, but with optional privacy features layered on top. Is it worth a timely investment of $1,500, or is its blistering run approaching an end?
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The bull case is simple to understand, but not simple to underwrite
Zcash's tokenomics are essentially the same as Bitcoin's because it's originally a fork of Bitcoin.
It uses proof of work (PoW), which is to say it requires mining to produce, it features a fixed supply of 21 million coins, and it follows a halving schedule that reduces its issuance by 50%, roughly every four years. In other words, its scarcity relative to past periods is programmatically guaranteed over time, just like it is with Bitcoin. So just to hammer this point home, when you're thinking about Zcash and its fundamental properties, your starting point really should be Bitcoin, because the overlap between the two is very significant.
CRYPTO: ZEC
Key Data Points
Where Zcash differs is privacy by design. Its cryptography uses a type of proof called zk-SNARKs, which allow for shielded (private) transactions while still permitting selective disclosure of information via viewing keys for audits or tax compliance. For a subset of investors, that's appealing because it means getting Bitcoin's store-of-value properties with an additional feature that may be worth a premium in certain use cases.
Nonetheless, this year's price action might be outpacing the coin's investment thesis. Just a few days ago, the coin changed hands for about $650, up dramatically since the start of the year, when it was just $58. In practice, that kind of absurd move might compress years of potential upside into months. The asset's long-term investment case might be intact, but the margin for error for those entering a position after a parabolic run is very thin.
Therefore, if you buy today, you are implicitly saying two things. First, that the coin's scarcity math continues to matter -- and it probably does. Second, that optional privacy does not meaningfully impair the asset's distribution or policy acceptance. That second assumption is, unfortunately, a bit problematic.
The bear case could be extremely bearish
Privacy coins like Zcash are not popular with regulators. In fact, they're extremely unpopular, in large part because their privacy features can and often are used to obscure illegal activity. So Zcash's future prospects are highly dependent on crypto exchanges being willing to list it, knowing that regulators might bring down the hammer on them if they do.
Another concern is that the European Union is moving toward banning privacy coins and anonymous crypto accounts under its new anti-money laundering (AML) regime by 2027. That would directly challenge centralized distribution and liquidity for privacy tech across the sector, and it will make it very hard for Zcash to gain traction in Europe. Even before the ban date, exchanges have repeatedly delisted or limited privacy assets in the E.U. to stay ahead of compliance risks, thereby constraining access and damping Zcash's nascent but increasing network effects.
CRYPTO: BTC
Key Data Points
Thus, whereas Bitcoin's appeal compounds as a neutral base asset for financial institutions and sovereigns, Zcash's appeal collides with substantial regulatory and legal issues. Optional privacy is helpful, and there are functions in Zcash that permit audits, but they do not eliminate the political incentive to signal toughness on anonymous finance.
This asset's regulatory headwind is not likely to fade, and it might intensify.
So is it a buy?
If your risk tolerance is high, Zcash can potentially work as a bet on the persistence of the privacy narrative and on its scarcity mechanics remaining salient while policy risk stays over the horizon.
Assuming that near-term enthusiasm about the coin stays intact, buying it now with $1,500 could mean participating in further upside, if it's there to gain. But with Zcash's recent run-up being as steep as it is, it's probably too overheated at its current price to be worth touching, so it's hard to recommend buying it right now even though its fundamentals are sound.
For most investors, concentrating on Bitcoin will likely produce better risk-adjusted outcomes during the next decade than leaning into a privacy coin facing intensifying regulatory scrutiny.
Still, watch for policy inflection points as they arrive. A credible, durable increase in regulatory compliant access in the E.U. and U.S., or sustained evidence that optional privacy is routinely used by regulated financial institutions, would strengthen the long-term thesis considerably.
