Barry Silbert, founder and CEO of Digital Currency Group (DCG), has described financial privacy as a "fundamental right" and the next "big asymmetric bet" in the crypto industry, according to The Block.
Speaking at the Bitcoin Investor Week conference, Silbert expressed his continued belief in Bitcoin as a core portfolio asset but is now looking for assets with the potential to grow 100 to 1,000 times.
"Bitcoin won't increase 500 times unless the US dollar completely collapses. I believe that Zcash or Bittensor can achieve such growth. Our portfolio is allocated accordingly," Silbert added.
This statement from the industry veteran is noteworthy given DCG's significant role in the sector. The holding's subsidiary, Grayscale, launched a Bitcoin trust (GBTC) back in 2013, which later became the basis for one of the largest spot ETFs.
Silbert acknowledged that in the era of analytics services like Chainalysis and Elliptic, Bitcoin can no longer be considered anonymous. He also expressed doubts about the feasibility of implementing privacy features into the first cryptocurrency's protocol, despite a clear market demand for private transactions.
"Privacy is the Main Theme"
Barry Silbert predicts that in the coming years, 5% to 10% of the liquidity in digital gold will flow into the anonymous cryptocurrency sector.
Since 2017, Grayscale has managed a Zcash-based trust and plans to convert it into a spot ETF. Previously, the product line also included a fund based on the ZEN token (Horizen). This asset now operates as a third-level network within the Base ecosystem.
"Right now, privacy is my main theme," the investor emphasized.
Quantum Threat and Regulatory Aspects
While the DCG head does not view the development of quantum computing as a direct threat to Bitcoin's security, he sees Zcash as an effective tool for hedging against risks associated with elliptic curve cryptography vulnerabilities.
Silbert noted that with Paul Atkins appointed as the head of the SEC, discussions around financial privacy have become significantly easier.
Parallel Opinion
In a comment to ForkLog, Sean Yang, chief analyst at MEXC Research, stated that forecasts regarding Bitcoin's market capitalization depend on its overall perceived value. However, today, the narrative of the first cryptocurrency as a savings tool is "no longer appealing."
"The mass sell-off is intensifying compared to gold, which has shown relatively positive results over the last two quarters. When investors do not see Bitcoin as a hedge against economic instability, attracting capital for a 500-fold growth becomes extremely difficult, if not impossible," Yang added.
According to the expert, this formula also applies to Zcash and Bittensor. Specifically, ZEC is viewed as a cheaper version of Bitcoin, built around privacy.
Given the limited supply and the qualities of the first cryptocurrency reflected in Zcash, investors may find the coin a more attractive alternative.
Bittensor also possesses a unique combination of programmability, which helps the project associate with the development of the artificial intelligence industry, Yang noted.
"Considering that the next era of the internet will be under the banner of AI and automated systems, Bittensor still has to realize its true advantages, making it a very attractive bet," the analyst emphasized.
Max Gnatisin, COO of Toobit in the CIS, added that mathematically, Zcash and Bittensor have greater potential than the first cryptocurrency due to their smaller sizes. However, betting on a 500-fold increase is a "risky scenario with low probability, not a realistic baseline option."
"Bitcoin is a relatively safe core asset, while ZEC and TAO are speculative satellites that can either soar or plummet," Gnatisin clarified.
It is worth noting that in January, the entire Zcash development team left the Electric Coin Company due to a conflict.