Key Takeaways
- Barry Silbert says up to 10% of Bitcoin capital could move into privacy coins in the future. He still believes Bitcoin is strong, but its large size may limit huge returns like 500x growth.
- Privacy coins like Zcash focus on protecting user data using zero-knowledge proofs. Bitcoin is not fully anonymous anymore. Many transactions can be tracked by blockchain analysis companies.
- As more banks and big investors enter crypto, rules and regulations are increasing, making privacy more important. Silbert believes Bitcoin may not add strong privacy features at its base level.
- Because of this, some investors may shift part of their money into privacy-focused cryptocurrencies. If even 5% to 10% of Bitcoin’s money rotates, it could bring billions of dollars into the privacy sector.
“BTC FADES, PRIVACY RAID!”
“10% MOVE, THE PRIVACY GROOVE!”
A 10% shift may sound small, but in Bitcoin’s world, it could mean a massive change. Barry Silbert, CEO of Digital Currency Group (DCG), believes that up to 10% of Bitcoin capital may transfer to privacy coins in the next years. Speaking at Bitcoin Investor Week in New York, he expressed this opinion.
Silbert stated unequivocally that he continues to support Bitcoin. It is a powerful and significant asset in cryptocurrency portfolios, he said. However, he added that Bitcoin is already highly popular.
Today’s BTC Graph
Technical Analysis
- RSI measures if an asset is overbought or oversold. The scale goes from 0 to 100. When RSI is below 30, it means the asset may be oversold. At 32, it is close to the oversold level but still in the neutral zone. This shows the market is weak, but not at extreme levels yet.
- MACD helps identify trend direction and momentum. A negative MACD value means bearish momentum is strong. This indicates that sellers are currently controlling the market.
- The indicators show the market is weak and under selling pressure. RSI and Stochastic are near oversold levels, while MACD confirms a bearish trend. If selling continues, prices may fall further.
Why 500x Returns May Be Unlikely
It might not expand as quickly as smaller cash due to its size. He clarified that until the U.S. currency experiences a drastic change, Bitcoin is not expected to yield extremely large returns, such as a 500 times rise.
Silbert mentioned cryptocurrencies like Zcash that prioritise privacy. The purpose of these coins is to safeguard user data. They employ complex equipment known as zero-knowledge proofs. With the use of this technology, one can show the legitimacy of a transaction without disclosing personal information.
Many individuals believed that Bitcoin was anonymous in its early days. Today, however, that is not entirely accurate. Numerous Bitcoin transactions can be tracked by blockchain tracking companies.
Why BTC May Not Deliver True Privacy
Regulations and checks are growing as more banks and large investors become involved in cryptocurrency. This increases the market’s awareness of privacy.
According to Silbert, Bitcoin is unlikely to provide strong privacy measures at the foundational level. As a result, he believes that some investors would shift a portion of their funds into privacy coins that were created specifically for that goal.
Conclusion
When Bitcoin money starts moving, who will win, privacy chains or big networks?
DCG is already exposed to privacy assets. In 2017, Greyscale, its subsidiary, introduced the Greyscale Zcash Trust. Additionally, the business is trying to increase the range of cryptocurrency investment options it offers.
But not everyone thinks privacy coins will take over. According to certain experts, privacy features might be directly added to big networks like Ethereum or Solana. Separate privacy blockchains might see fierce competition if that occurs.
Nonetheless, billions of dollars might be invested in the privacy space if just 5% to 10% of Bitcoin’s capital rotates. That might result in significant growth and new attention.
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