VanEck CEO Questions Bitcoin’s Privacy and Encryption, Highlights Zcash as Alternative
VanEck CEO Jan van Eck raised concerns over Bitcoin’s encryption and privacy, noting that some long-term holders are exploring Zcash as the market reassesses Bitcoin’s long-term assumptions.
Speaking on CNBC’s Power Lunch with Brian Sullivan on Friday, van Eck said these issues go beyond short-term price swings. “There’s something else going on within the Bitcoin community that non-crypto people need to know about,” he explained.
He emphasized that VanEck evaluates Bitcoin like any traditional asset. “We will walk away from Bitcoin if we think the thesis is fundamentally broken. We don’t right now, but you always have to look at the underlying technology and the crypto.”
While van Eck did not define the “Bitcoin thesis,” his comments focused on key factors for long-term viability: the strength of its cryptography, quantum resilience, and whether its privacy model meets user expectations. He questioned whether Bitcoin offers “enough encryption” and “enough privacy,” which are becoming central questions in the community.
Privacy Coins Draw Attention
Van Eck noted that some Bitcoin maximalists are now examining Zcash, calling it “sort of related to Bitcoin with a lot more privacy.” He highlighted that Bitcoin’s transparent ledger may conflict with growing expectations for transaction confidentiality: “When you move money around on the Bitcoin blockchain, you can see it. You can see it move from one wallet to another.”
After the interview, van Eck posted on X that the current Bitcoin bear market reflects “the onchain reality of the halving cycle (bearish for 2026), quantum-breaking-encryption concerns, and the better privacy of Zcash.” He also cited VanEck portfolio manager Pranav Kanade’s guidance to “dollar cost average into bear markets.”
At the time of the interview, Bitcoin traded around $84,643. By Nov. 23, 9:15 a.m. UTC, it had risen to $86,204, up 2.4% in 24 hours but still down 7.7% YTD and 31.6% below its all-time high of $126,080 on Oct. 6, 2025.
Mixed Reactions from the Crypto Community
Reactions were divided.
- Some echoed van Eck’s concerns about quantum risks. Ethereum co-creator Vitalik Buterin warned that quantum computing could threaten elliptic curve cryptography. Quantum researcher Scott Aaronson noted the possibility of a fault-tolerant quantum computer capable of running Shor’s algorithm before the 2028 U.S. election.
- Others strongly disagreed. Samson Mow, CEO of JAN3, rejected the idea that Bitcoin maximalists are turning to privacy coins, tweeting: “You wouldn’t be able to point out a Bitcoin Maxi even if they were standing in front of you… stay in your lane and push the latest shitcoin narrative.”
Zcash Gains Amid Privacy Debate
Privacy-focused Zcash has surged amid growing interest. ZEC is now the 13th-largest cryptocurrency, with a market capitalization of $9.43 billion, trading at $578.35—up 17.3% in 24 hours, 121.3% over 30 days, and 930% YTD. For comparison, ZEC traded near $55.06 on Sept. 24.
Van Eck’s remarks, alongside broader discussions about encryption, privacy, and quantum readiness, suggest that debates over Bitcoin’s long-term architecture will intensify as 2026 approaches, particularly as traders reassess the halving cycle’s influence on the current market downturn.
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