Barry Silbert Predicts Shift from Bitcoin to Zcash

Barry Silbert sees financial privacy as a key future bet in crypto.

Barry Silbert, founder and CEO of Digital Currency Group (DCG), described financial privacy as a “fundamental right” and the next “major asymmetric bet” in the crypto industry, reports The Block.

Speaking at the Bitcoin Investor Week conference, the entrepreneur noted that he still believes in the first cryptocurrency as a portfolio foundation but is seeking assets with the potential to grow 100–1000 times.

“Bitcoin will not grow 500 times unless the US dollar completely collapses. I believe that such growth is possible for Zcash or Bittensor. Our portfolio is allocated accordingly,” added the head of DCG.

The veteran industry figure’s statement is notable given DCG’s role in the industry. A subsidiary of the holding, Grayscale, launched a Bitcoin trust (GBTC) in 2013, which later became the basis for one of the largest spot ETFs.

The entrepreneur acknowledged that “in the era of analytical services like Chainalysis and Elliptic,” Bitcoin can no longer be considered anonymous. He also expressed doubt about the possibility of integrating privacy features into the protocol of the first cryptocurrency, despite the clear market demand for private transactions.

“Privacy is the Main Topic”

Barry Silbert forecasts that in the coming years, 5% to 10% of digital gold’s liquidity will shift to the anonymous cryptocurrency sector.

Since 2017, Grayscale has managed a trust based on Zcash and plans to convert it into a spot ETF. Previously, the product line also included a fund based on the ZEN token (Horizen). Currently, this asset operates as a third-level network in the Base ecosystem.

“Privacy is my main topic right now,” emphasized the investor.

Quantum Threat and Regulatory Aspect

Although the head of DCG does not view the development of quantum computing as a direct threat to Bitcoin’s security, he considers Zcash an effective tool for hedging the risks of hacking elliptic curve cryptography.

Silbert emphasized that with Paul Atkins’ appointment as head of the SEC, discussing financial privacy issues has become significantly easier.

Earlier, developers of Zcash left Electric Coin Company due to a conflict.