Concerns Grow Over Zcash's Impact on Bitcoin, Says Bloomberg Analyst

Bloomberg Senior ETF Analyst Eric Balchunas has raised concerns that Zcash might negatively affect Bitcoin during a pivotal time.

In a recent post on X, he suggested that Zcash (ZEC) possesses ’third-party candidate vibes, like Gary Johnson or Jill Stein,’ warning that promoting a distinct privacy coin could risk ‘splitting the vote’ when Bitcoin (BTC) requires consolidated political and cultural support.

Balchunas’s remarks arrive as the Bitcoin vs Zcash debate gains momentum. Arman Meguerian, founder and CEO of Timestamp, refuted the notion that BTC supporters are switching to Zcash, stating, “I don’t know a single Bitcoin maxi that thinks about Zcash at all” wrote on X.

Samson Mow, founder of Jan3, echoed this view, asserting that Bitcoin maxis are ‘only looking at Zcash to roll our eyes at it.’

Eric Balchunas discusses Zcash vibes
Eric Balchunas states that Zcash has third-party candidate vibes. Source: Eric Balchunas

Critics Accuse Zcash of Fabricated Hype

The criticism escalated as other industry figures accused Zcash proponents of creating artificial buzz.

Mark Moss, a Bitcoin-oriented venture capitalist and entrepreneur, recently shared snapshots of outreach messages from marketing firms proposing paid ZEC collaborations. He questioned, “Wonder why ZCash is showing up EVERYwhere all of a sudden?” on X.

Market analyst Rajat Soni cautioned that the recent enthusiasm around ZEC appears to be an effort to ‘find exit liquidity,’ referencing fabricated headlines claiming that Fidelity analysts predicted Zcash would hit $100,000.

Winklevoss Twins Support Zcash

However, not everyone is skeptical about Zcash’s recent gains. The Winklevoss twins, founders of Gemini and early Bitcoin investors, have recently launched Cypherpunk Tech, the first Zcash-focused treasury company.

In an interview with Cointelegraph, they referred to Zcash as ’encrypted Bitcoin,’ asserting that Bitcoin is optimal for preserving value while Zcash excels in private transactions. They believe Zcash serves as a complement rather than competition to Bitcoin.

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