Concerns Over Zcash’s Impact on Bitcoin
Bloomberg’s Eric Balchunas has issued a warning that Zcash may weaken Bitcoin’s political support at a crucial time. In a recent post on X, he suggested that Zcash (ZEC) evokes the essence of third-party candidates like Gary Johnson or Jill Stein, citing that promoting an alternative privacy coin could risk dividing the backing that Bitcoin (BTC) requires.
This caution comes as the debate between Bitcoin and Zcash heats up, with Arman Meguerian, founder and CEO of Timestamp, dismissing the notion that Bitcoin supporters are shifting their allegiance to Zcash, stating, “I don’t know a single Bitcoin maxi that thinks about Zcash at all” in a tweet.
Samson Mow, founder of Jan3, echoed this perspective, noting that Bitcoin enthusiasts view Zcash primarily to scoff at it.
Eric Balchunas says Zcash has third-party candidate vibes. Source: Eric Balchunas
Related: The Bitcoin vs Zcash debate intensifies as ZEC reclaims $700 level
Accusations of Artificial Hype Surrounding Zcash
The criticism mounted as other prominent figures in the sector accused Zcash advocates of creating misleading excitement. Mark Moss, a Bitcoin-focused entrepreneur, shared screenshots of outreach from marketing agencies proposing paid collaborations for ZEC, asking, “Wonder why ZCash is showing up EVERYwhere all of a sudden?” in a tweet.
Market analyst Rajat Soni warned that the recent surge in interest around ZEC might be an effort to “find exit liquidity,” pointing out fake news suggesting that Fidelity analysts forecast Zcash hitting $100,000.
Related: Winklevoss twins bet on Zcash, privacy to combat AI threat
Winklevoss Twins Support Zcash
Conversely, not all voices are wary of Zcash’s newfound popularity. The Winklevoss twins, who co-founded Gemini and are early Bitcoin investors, have recently launched Cypherpunk Tech, marking the first treasury firm focusing on Zcash. They characterize Zcash as “encrypted Bitcoin,” asserting that while Bitcoin is ideal for retaining value, Zcash is superior in conducting private transactions.
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