ZEC Price Slides 25%: Why Are Miners and Privacy Users Doubling Down?
- Zcash (ZEC) has experienced a significant price decline of over 25% due to prevailing market weakness, yet the underlying network shows signs of resilience and growth.
- Despite a shaky start in 2026, with a 41% drop in January, on-chain data indicates increased activity, particularly in shielded pools, hinting at sustained user trust in Zcash’s privacy features.
- The difficulty level for Zcash mining hit an all-time high in February, reflecting robust network security and heightened miner competition.
- The mining of Zcash remains profitable, especially with efficient hardware like the Antminer Z15 Pro, fostering optimism for future asset value appreciation.
WEEX Crypto News, 2026-02-17 13:50:43
Zcash (ZEC), a cryptocurrency prized for its privacy features, has recently faced turbulent times with its price plummeting over 25% amid market volatility. Despite this downturn, there are nuanced signals within the network’s on-chain activity and mining dynamics that suggest enduring strength and resilience. This article explores these aspects in detail, addressing why miners and privacy advocates remain committed to Zcash even as immediate market pressures loom.
The Zcash Price Decline Amid Broader Market Weakness
Zcash has seen better days, particularly in late 2025, when it managed to defy the cryptocurrency sector’s widespread downturn by posting an impressive surge of over 440% in October. According to data from CryptoRank, ZEC maintained its momentum into November and December, closing both months with modest gains despite heightened volatility.
However, the onset of 2026 marked a turning point, with Zcash succumbing to a broader risk-off sentiment that cast a shadow over financial markets. Several factors contributed to this negative shift, including unease about the Electric Coin Company (ECC) team’s separation from Bootstrap. Consequently, ZEC dipped significantly, recording a more than 41% decline in value in January, and has continued this downward trajectory into February. As of the latest report, Zcash was trading at approximately $227.22, marking a 4.29% drop over the preceding 24-hour period.
A Deeper Look at On-Chain Data: Rising Confidence in Privacy
Despite current price challenges, Zcash’s network engagement tells a different story. On-chain data suggest positive trends, particularly in shielded pools. These pools, critical to Zcash’s privacy protocols, have seen a resurgence after a minor dip in early January. At present, shielded addresses hold over 5 million ZEC, representing around 30% of the coin’s total circulating supply. This data implies that users are actively engaging with Zcash’s privacy features, seemingly unfazed by the absence of immediate financial gain.
An increase in shielded transactions signals strong user confidence in Zcash’s privacy capabilities. Analysts have pointed out that real people are continually opting for shielded transactions, a testament to the network’s robust infrastructure designed for secure and private dealings. This ongoing activity suggests a foundational trust in the cryptocurrency’s promise of privacy, which continues to attract users despite market volatility.
The Rising Difficulty in Zcash Mining: A Testament to Network Security
Another critical element contributing to the resilience of Zcash is its mining difficulty, which has recently reached unprecedented levels in early February. This metric is a direct reflection of the collective computational power dedicated to mining Zcash and signifies an increased level of competition among miners. A rise in mining difficulty indicates enhanced network security, as more computing power is required to process transactions and secure the blockchain.
The heightened competition among miners is indicative of a strong belief in Zcash’s long-term viability. Miners have been increasing their hash power on the network, whether through new entrants, the expansion of industrial mining operations, or the utilization of more efficient mining hardware. While increased difficulty often reduces the expected block reward per unit of computing power, it is a favorable indicator of network strength and integrity.
Mining Economics: Profitability and Strategic Considerations
The economic viability of mining Zcash remains firm, buoyed by potential profitability with the right hardware. The Antminer Z15 Pro, for example, is expected to repay its cost in approximately four months, underscoring the appeal of Zcash mining investments from an economic standpoint. Of course, this calculation excludes electricity costs, which can vary significantly depending on geographical location and operational efficiencies.
Several factors contribute to this profitable outlook, including low electricity costs, strategic positioning by mining operators, and expectations of future price hikes. Such conditions foster an environment where Zcash mining remains attractive, even with the general bearish sentiment pervading broader cryptocurrency markets.
The Broader Implications and Future Prospects for Zcash
Zcash’s current situation serves as a compelling case study of a cryptocurrency that, despite facing significant price pressure, exhibits underlying strengths that might herald a brighter future. The increase in shielded transactions, alongside the growing difficulty and competitiveness of mining, points to a network robustly positioned to weather economic trends and see potential future appreciation.
Cryptocurrency markets are inherently volatile, with prices swinging significantly based on myriad factors beyond immediate control. For Zcash, maintaining a commitment to privacy-focused features and strengthening network integrity through state-of-the-art security measures paves the way for continued relevance. As users demand greater privacy in digital interactions, Zcash stands to benefit from these shifting priorities, positioning itself as a preferred choice in privacy-centric financial solutions.
Frequently Asked Questions
What factors caused the recent decline in Zcash’s price?
The recent decline in Zcash’s price can be attributed to a combination of broader market volatility and specific concerns related to the Electric Coin Company (ECC) team’s split from Bootstrap. These factors contributed to a risk-off sentiment that impacted ZEC’s market performance.
Why is there an increase in Zcash’s shielded transactions?
The increase in Zcash’s shielded transactions reflects enhanced user engagement with the cryptocurrency’s privacy features. Despite market fluctuations, users continue to favor Zcash for its commitment to privacy, as evidenced by the rise in shielded addresses holding ZEC.
How does mining difficulty affect Zcash’s network?
Mining difficulty affects Zcash’s network by indicating the level of competition among miners. A rise in difficulty suggests an influx of computational power, which strengthens the network’s security and integrity, ensuring robust processing of transactions.
Is mining Zcash currently profitable?
Yes, mining Zcash can be profitable, particularly with the right hardware, such as the Antminer Z15 Pro. However, profitability depends on factors such as electricity costs and operational efficiencies.
What future prospects does Zcash have given its current challenges?
Despite its current price challenges, Zcash’s increased shielded transactions and rising mining difficulty suggest a resilient network with long-term potential. The privacy-centric approach of Zcash positions it well for future growth as demand for secure digital interactions continues to rise.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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