Zcash sparks warnings of fractured Bitcoin political backing
Bloomberg ETF analyst Eric Balchunas has warned that rising attention around Zcash risks “splitting the vote” against Bitcoin, arguing that promoting a separate privacy-coin banner could dilute Bitcoin’s political and cultural backing at a sensitive moment for crypto in the U.S.
Balchunas made the comment in a post on X, likening Zcash’s current momentum to a third-party political run that siphons support from a front-runner. He said that if Bitcoin advocates pivot toward ZEC as a parallel “privacy” standard, it may weaken the unified push Bitcoin needs in policy fights and mainstream adoption debates.
The warning comes during a sharp Zcash rally that has pushed the token back above $700 after a recent slide below $600, putting ZEC near the top of market trend lists and reigniting long-running arguments about whether Bitcoin can deliver privacy at scale or whether dedicated privacy chains should lead that niche.
Several Bitcoin-leaning voices rejected the idea that Zcash is pulling serious capital or mindshare away from BTC. Arman Meguerian, founder and CEO of Timestamp, said he does not see Bitcoin maximalists moving into Zcash, adding that Bitcoin supporters rarely consider ZEC a substitute. Samson Mow, founder of Jan3, echoed that view, saying Bitcoin-focused investors are not shifting camps and are mostly treating the Zcash surge skeptically.
The back-and-forth has been sharpened by accusations that Zcash’s rebound reflects coordinated hype rather than organic rotation. Traders on social media have pointed to the speed of the move and the timing of privacy-coin narratives, while Zcash supporters argue that renewed interest is tied to growing demand for shielded transactions and regulatory pressure on surveillance-heavy crypto rails.
Zcash is built around zero-knowledge proofs that let users send fully encrypted transactions while still using a public blockchain. Bitcoin, by contrast, relies on transparent UTXO flows, with privacy typically achieved through external tools such as coin-mixing, CoinJoin variants, or layer-two routing, all of which have faced tighter scrutiny in multiple jurisdictions over the past two years.
For now, the market split remains mostly rhetorical. Bitcoin continues to dominate liquidity and institutional focus, while Zcash’s surge has amplified a smaller, privacy-first corner of the market. Whether ZEC holds its gains or fades back will shape how long this “split-the-vote” argument stays in the spotlight.
The material on GNcrypto is intended solely for informational use and must not be regarded as financial advice. We make every effort to keep the content accurate and current, but we cannot warrant its precision, completeness, or reliability. GNcrypto does not take responsibility for any mistakes, omissions, or financial losses resulting from reliance on this information. Any actions you take based on this content are done at your own risk. Always conduct independent research and seek guidance from a qualified specialist. For further details, please review our Terms, Privacy Policy, and Disclaimers.
Articles by this author
