Tushar Jain, co-founder and managing partner of the investment firm Multicoin Capital, believes that the next wave of $ZEC buyers will consist of the same people who actively invested in the first cryptocurrency from 2015 to 2020.
In the mid-2010s, many wealthy Chinese internet entrepreneurs were the first to realize the potential of digital currencies for circumventing strict domestic restrictions. They transferred huge amounts of capital into crypto assets. According to the analytics company Chainalysis, in just one year, over $50 billion was withdrawn from China in cryptocurrencies, becoming a classic example of capital flight.
These politically vulnerable investors were a powerful driver of Bitcoin's growth in those years. Their activity has now become less noticeable, but it is precisely this type of user that is beginning to shape future demand for anonymous networks.
Current realities are forcing people to seek new ways to protect their savings, and this applies not only to developing countries but also to quite prosperous European jurisdictions.
People, often living outside the US in countries with more repressive governments, want to save their wealth, noted Tushar Jain.
In this case, repressive measures refer to aggressive fiscal policies.
The Netherlands recently passed a tax on unrealized capital gains. People are protecting themselves from such things and are looking for a private, censorship-resistant store of value for this purpose, such as $ZEC, added the expert.
Indeed, the "Box 3" tax reform being discussed in the Netherlands, which will replace the fictitious return system with a 36% tax on actual profits and capital gains by 2028, is already causing serious concern among investors due to the risk of taxing illiquid assets.
Such legislative initiatives force major capital owners to radically reconsider their strategies. When states begin to control funds more strictly and seek to tax the yet-unrealized "paper" value of assets, traditional investment instruments lose their appeal.
In Tushar Jain's opinion, under such conditions, blockchain projects with a high level of privacy become not just a convenient means of payment but a tool for preserving personal savings. As is known, Zcash allows for hiding transaction amounts and sender addresses, offering protection from censorship and external surveillance.
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