Concerns Arise Over Zcash's Impact on Bitcoin, Warns Bloomberg Analyst

Zcash’s Potential Negative Impact on Bitcoin

Bloomberg Senior ETF Analyst Eric Balchunas has expressed concerns that Zcash may adversely affect Bitcoin’s crucial political and cultural support during this important time. Balchunas remarked in a recent post on X that Zcash (ZEC) carries “third-party candidate vibes, like Gary Johnson or Jill Stein,” suggesting that promoting a distinct privacy coin could result in “splitting the vote” at a time when Bitcoin (BTC) needs unified backing.

This statement coincides with an intensifying debate regarding Bitcoin and Zcash. Arman Meguerian, the founder of Timestamp, rejected the notion that Bitcoin supporters are shifting their focus to Zcash, stating, “I don’t know a single Bitcoin maxi that thinks about Zcash at all.”

Samson Mow from Jan3 echoed similar sentiments, noting that Bitcoin enthusiasts are “only looking at Zcash to roll our eyes at it.”

Eric Balchunas says Zcash has third-party candidate vibes. Source: Eric Balchunas

Critics Claim Zcash is Generating False Hype

Increased criticism arose as several industry figures accused Zcash proponents of creating artificial hype. Mark Moss, a Bitcoin advocate and entrepreneur, highlighted outreach messages from marketing firms soliciting paid collaborations with ZEC, expressing skepticism about the sudden influx of attention on Zcash.

Market analyst Rajat Soni cautioned that the latest buzz surrounding ZEC resembles efforts to “find exit liquidity,” referencing dubious claims that Fidelity analysts forecast Zcash reaching a price of $100,000.

Winklevoss Twins Support Zcash

Despite the skepticism, the Winklevoss twins, founders of Gemini and early Bitcoin backers, have shown confidence in Zcash’s revival. They recently launched Cypherpunk Tech, the first treasury company focused on Zcash. In an interview with Cointelegraph, they characterized Zcash as “encrypted Bitcoin,” stating that while Bitcoin is ideal for value storage, Zcash is better for private transactions. They view Zcash as supplementary to Bitcoin rather than a rival.

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