In a recent interview on CNBC, Jan van Eck, CEO of investment management firm VanEck, raised concerns about Bitcoin’s encryption and privacy capabilities, sparking renewed interest in Zcash. Van Eck suggested that these issues are becoming increasingly relevant within the Bitcoin community, particularly as market dynamics evolve. He noted that several long-standing Bitcoin holders are exploring Zcash, a cryptocurrency known for its enhanced privacy features.
Zcash (ZEC) has recently gained momentum, now holding the position of the 13th-most valuable cryptocurrency with a market capitalization of $9.43 billion. As of the latest reports, Zcash traded at $578.35 following a significant price surge. During the interview, Bitcoin was trading around $84,643, before rising to $86,204 by Sunday.
Van Eck described Zcash as an alternative to Bitcoin, emphasizing its stronger privacy features in contrast to Bitcoin’s transparent ledger, which allows for public visibility of transactions. He indicated that growing expectations around transaction privacy are at odds with Bitcoin’s fundamental characteristics. Van Eck expressed a commitment to evaluating Bitcoin similarly to traditional assets, reiterating that VanEck would reassess its investment thesis if essential issues arise.
Following the interview, van Eck shared his thoughts on X, linking the current Bitcoin bear market to realities like the halving cycle and rising concerns surrounding quantum encryption. His remarks drew a variety of responses across the crypto community. Notably, Ethereum co-founder Vitalik Buterin highlighted the potential risks of quantum computing on existing encryption methods.
On the other hand, some within the Bitcoin community, such as Samson Mow, CEO of JAN3, criticized van Eck’s statements, suggesting he should refrain from discussions regarding Bitcoin.
Zcash’s recent surge can be attributed in part to heightened attention towards privacy features in cryptocurrencies. Over the past 24 hours, ZEC saw a 17.3% increase, contributing to a remarkable 930% rise year-to-date from a trading price of around $55.06 in late September. This uptick coincided with OKX’s announcement of the relisting of Zcash, which is set to resume trading on November 24, following its previous delisting in early 2024 for regulatory reasons.
The exchange’s decision to reinstate Zcash reflects a shift in compliance strategies and caters to its large Chinese-speaking user base. With trading support being highlighted, traders have begun allocating positions in anticipation of further gains. Technical indicators suggest Zcash may see additional upside, as selling pressure appears to be easing, and recent momentum points toward potential breakout levels near $620. This renewed focus on Zcash coincides with rising market sentiment regarding privacy-focused cryptocurrencies, presenting a challenging prospect for Bitcoin to maintain its dominance in the space.
