Digital Currency Group CEO Barry Silbert Forecasts 5-10% of Bitcoin Capital to Shift to Privacy Coins Such as Zcash

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TLDR

  • Digital Currency Group CEO Barry Silbert anticipates that 5-10% of Bitcoin’s capital will transition to privacy-focused cryptocurrencies like Zcash within the next few years.
  • Silbert suggests that privacy coins have the potential for 500-1,000x returns, whereas Bitcoin’s upside is limited unless the U.S. dollar experiences a collapse.
  • Charles Hoskinson, the founder of Cardano, has confirmed that Midnight’s privacy blockchain mainnet is scheduled to launch in the final week of March 2026.
  • Key partners, including Google and Telegram, will support the initial rollout of Midnight’s network.
  • Grayscale established the Grayscale Zcash Trust in 2017 and is currently working towards its conversion into an ETF.

Barry Silbert, founder of Digital Currency Group, shared his outlook on cryptocurrency investments during the Bitcoin Investor Week conference in New York City on Wednesday. He projected that 5-10% of Bitcoin’s capital is likely to be reallocated to privacy-focused cryptocurrencies in the coming years.

Silbert elaborated on his rationale for this predicted shift. While he remains optimistic about Bitcoin, he perceives its potential for significant gains as constrained when compared to privacy coins.

“Unless the U.S. dollar completely collapses, Bitcoin is not going to go up 500x,” Silbert stated. He specifically highlighted Zcash and Bittensor as projects that could potentially yield returns of 500x or even 1,000x.

The DCG CEO pointed out that Bitcoin’s initial positioning as “anonymous cash” is no longer accurate, as transaction data can now be tracked by analytics firms such as Chainalysis and Elliptic. Silbert expressed skepticism about Bitcoin ever incorporating privacy features, despite a clear demand for private digital currency.

Cardano’s Midnight Blockchain Set for March Launch

Charles Hoskinson announced the upcoming mainnet launch of Midnight during a keynote address at the Consensus Hong Kong conference. The privacy-centric blockchain is slated to go live in the final week of March 2026.

Hoskinson also revealed collaborations with prominent companies for the network’s rollout. Google and Telegram are set to be early partners, assisting in the operation of the Midnight network. Further partnership announcements are anticipated.

The Midnight NIGHT token was introduced in December following a substantial airdrop. Major exchanges, including , listed the token. Hoskinson also unveiled Midnight City Simulation, an interactive tool designed to showcase the platform’s selective disclosure capabilities.

Grayscale’s Privacy Coin Investment Products

Grayscale, a subsidiary of DCG, has been an investor in the privacy coin sector for several years. The company launched the Grayscale Zcash Trust in 2017 as a publicly traded fund and is now pursuing its conversion into an exchange-traded fund.

Previously, the company offered an investment vehicle for the ZEN token, the native asset of the Horizon privacy chain, which now functions as a Base Layer 3.

Silbert indicated that he feels more comfortable discussing financial privacy in the current climate. With Paul Atkins leading the Securities and Exchange Commission as chairman, Silbert described privacy as his “jam right now.”

The DCG founder views privacy coins as an asymmetric investment opportunity, akin to early investments in Bitcoin. He strategically allocates his portfolio to projects he believes are transformative and offer greater return potential than Bitcoin at its present stage.

Hoskinson emphasized that privacy is a multifaceted concept, extending beyond simple on-off functionalities. He critiqued the approaches adopted by the Monero and Zcash communities. Midnight’s objective is to deliver scalable privacy through rational privacy principles, ensuring data remains private by default but can be disclosed when necessary.

Silbert also addressed concerns regarding the potential threat posed by quantum computing to Bitcoin. He does not foresee quantum computers as a risk to Bitcoin but noted that Zcash serves as a protective measure against such eventualities.