Bloomberg Analyst Warns of “Splitting the Vote”

A recent resurgence in Zcash has drawn a warning from Bloomberg Senior ETF Analyst Eric Balchunas, who suggested the privacy coin could dilute the political and cultural support for Bitcoin at a critical time. His comments highlight a growing debate over whether Zcash complements or competes with the leading cryptocurrency.

Winklevoss Twins Champion Zcash as Complementary Tech

Not everyone shares Balchunas’s concerns. The Winklevoss twins, founders of the Gemini exchange and prominent Bitcoin investors, have recently launched Cypherpunk Tech, a treasury company focused exclusively on Zcash. In a recent interview, they described Zcash as an “encrypted Bitcoin,” arguing that the two assets serve different purposes. In their view, Bitcoin excels as a store of value, while Zcash offers superior capabilities for private transactions, making them complementary technologies rather than direct rivals.

Critics Allege Manufactured Hype

The renewed interest in Zcash has also attracted sharp criticism from other industry figures who claim the excitement is artificially generated. Mark Moss, a venture capitalist and educator focused on Bitcoin, shared screenshots of outreach messages he received from marketing agencies offering paid collaborations to promote ZEC. “Wonder why ZCash is showing up EVERYwhere all of a sudden?” he questioned.

Market analyst Rajat Soni echoed this skepticism, suggesting the recent activity looks like an attempt by large holders to “find exit liquidity.” He pointed to fabricated headlines circulating online, including a false claim that Fidelity analysts had predicted Zcash would reach a price of $100,000, as evidence of a coordinated promotional effort.