Barry Silbert, founder and chief executive officer of Digital Currency Group (DCG), told attendees at Bitcoin Investor Week in New York that 5 % to 10 % of capital currently held in Bitcoin is likely to migrate into privacy-focused cryptocurrencies over the coming years — a shift he believes could reshape investment strategies in the digital-asset ecosystem. Silbert highlighted Zcash as a leading candidate to benefit from this trend due to its potential for outsized returns relative to Bitcoin.
Shift Toward Privacy Coins as an “Asymmetric Bet”
Silbert — a longtime supporter of Bitcoin and head of one of the industry’s most influential investment firms — described privacy coins as an “asymmetric investment opportunity” akin to Bitcoin’s early days. While he remains bullish on Bitcoin as a core portfolio holding, he argued that Bitcoin likely lacks the upside for 100x, 500x, or 1,000x returnsunless dramatic macro conditions unfold, such as a collapse of the U.S. dollar. In contrast, emerging privacy projects like Zcash and BitTensor could achieve those high multiples, he said.
“The bet that we’re making, is 5%–10% of Bitcoin over the next few years is going to find its way into privacy-focused cryptocurrencies,” Silbert said, framing his view that capital currently allocated to Bitcoin may increasingly seek alternative narratives and growth vectors.
Why Privacy Coins Now?
Silbert emphasized that as market demand for financial privacy grows, investors may favor cryptocurrencies that enhance user confidentiality — a demand that Bitcoin does not inherently satisfy due to its transparent ledger design. He pointed to advancements in analytical tools such as Chainalysis and Elliptic, which make on-chain data more trackable and reduce Bitcoin’s privacy by default, while privacy protocols offer selective shielding of transaction data.
Zcash in particular — which uses zero-knowledge proofs (zk-SNARKs) to enable optional shielded transactions — has gained traction among investors and institutions seeking privacy combined with compliance options. Zcash’s model allows users to choose between transparent and private transactions, making it technically and regulatorily distinct from fully anonymous coins.
DCG’s Broader Investment Landscape
DCG — a major force in the crypto investment world with subsidiaries including Grayscale and Foundry — has long supported privacy-related projects. Its exposure to Zcash and connected assets reflects a strategic allocation that aligns with Silbert’s view of where future growth may arise in crypto markets.
Silbert’s remarks come at a time when privacy coins are regaining attention after years of regulatory pressure and exchange delistings. Some markets are observing renewed interest in privacy token narratives, and analysis suggests that shielded transaction adoption and institutional engagement could drive future valuation dynamics.
Market Reaction and Outlook
Industry analysts caution that privacy coins still face regulatory headwinds, particularly in jurisdictions where anti-money-laundering and compliance requirements are stringent. However, Silbert’s forecast — if realized — could signal a meaningful shift in how capital is allocated within the broader cryptocurrency space, potentially diversifying investment away from traditional blue-chip assets toward higher-risk, high-growth sectors.
As the market evolves, Silbert’s comments may influence investor discussions around portfolio diversification, the role of privacy in digital finance, and the broader narrative for altcoin growth beyond Bitcoin’s established narrative.
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