Bitcoin funds or a major migration? Barry Silbert predicts 5%-10% flowing into Zcash, as privacy coins face a revaluation window

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On February 12, it was reported that Digital Currency Group (DCG) founder Barry Silbert stated at the Bitcoin Investor Week Conference in New York that in the next few years, approximately 5%–10% of Bitcoin funds may flow into privacy-focused crypto assets represented by Zcash. He believes that Bitcoin remains the core asset, but in terms of privacy and high growth potential, privacy coins may exhibit stronger “asymmetric returns.”

Silbert pointed out that as on-chain analysis tools become more mature, the early narrative of Bitcoin as “anonymous cash” has been weakened, and transaction traceability has become a reality. He emphasized that unless there is a structural collapse of the dollar system, Bitcoin is unlikely to replicate its previous hundreds-fold growth, whereas projects focused on privacy protection and new encryption technologies could potentially deliver 500x or higher returns. He specifically mentioned Zcash and Bittensor, considering these assets more suitable for high-risk, high-reward strategic allocations.

Regarding privacy blockchains, Cardano founder Charles Hoskinson also sent an important signal. At the Consensus Conference in Hong Kong, he announced that the privacy chain Midnight will launch its mainnet in the last week of March 2026. The network features a “selective disclosure” mechanism, where information is encrypted by default but can be accessed with authorization in compliant or necessary scenarios. Hoskinson also revealed that Google and Telegram will participate as early partners in network operations.

Meanwhile, DCG’s Grayscale has long been involved in the privacy sector. Its Zcash trust product was launched in 2017 and is currently applying to convert into an ETF. Silbert stated that he now prefers to refer to this field as “financial privacy,” and believes that privacy technology will become a key issue in the next phase, balancing compliance and personal data protection.

On the risk of quantum computing, Silbert believes that Bitcoin will not face substantial threats in the short term, but the upgrade capabilities of privacy chains in encryption algorithms could serve as an additional pathway to hedge against potential technological shocks.

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