• Bloomberg’s Eric Balchunas warns Zcash could dilute political and cultural support for Bitcoin
• BTC advocates reject claims of shifting interest toward Zcash
• Critics say recent Zcash hype is manufactured through aggressive marketing
• Winklevoss twins launch a new Zcash-focused treasury company, supporting the project

Bloomberg Senior ETF Analyst Eric Balchunas has raised concerns that Zcash could unintentionally weaken Bitcoin at a critical time for the industry. In a recent post on X, he said Zcash gives off the same “third-party candidate vibes” seen in U.S. elections, comparing it to figures like Gary Johnson or Jill Stein. His argument is that promoting a separate privacy coin could “split the vote” at a moment when Bitcoin relies heavily on unified political, cultural and regulatory support. As governments debate crypto policy and institutional adoption accelerates, Balchunas believes that diverting attention away from Bitcoin may undermine the broader pro-BTC movement.

The discussion has become more intense as Bitcoin supporters push back against the idea that the community is shifting toward Zcash. Arman Meguerian, CEO of Timestamp, dismissed the narrative and said he doesn’t know a single Bitcoin maximalist who thinks seriously about Zcash. This sentiment was echoed by Samson Mow, the founder of Jan3, who claimed Bitcoin maxis are only paying attention to Zcash in order to “roll their eyes” at the current wave of hype. Their comments suggest that many Bitcoin advocates view Zcash as irrelevant to Bitcoin’s long-term path and see little risk of users migrating to privacy-focused alternatives.

However, the backlash toward Zcash has grown as critics accuse the project of manufacturing excitement through paid promotions. Bitcoin-focused investor Mark Moss shared screenshots of marketing agencies offering paid collaborations to promote ZEC across social platforms. He suggested this explains why Zcash content suddenly appears everywhere. Market analyst Rajat Soni also warned that the recent wave of enthusiasm looks like an attempt to “find exit liquidity,” pointing to misleading viral headlines claiming that Fidelity analysts predicted a $100,000 ZEC price target. These concerns highlight the growing tensions between organic community support and aggressive marketing tactics.

Despite the criticism, not everyone views Zcash negatively. The Winklevoss twins, founders of Gemini and well-known early Bitcoin investors, recently launched Cypherpunk Tech, the first Zcash-focused treasury company. In an interview, they described Zcash as “encrypted Bitcoin,” explaining that Bitcoin remains the best tool for long-term value storage while Zcash provides superior privacy for transactions. They argued that the two networks serve different purposes and should be seen as complementary rather than competitive. Their involvement adds legitimacy to Zcash’s renewed visibility and shows that some major industry figures believe privacy-focused assets will play an important role in the future of digital finance.

As the debate continues, the core tension remains whether Zcash helps or harms the broader crypto ecosystem. Supporters argue that privacy coins fill a necessary gap, while critics worry that dividing attention at this moment weakens Bitcoin’s momentum. Balchunas’s warning has brought these divisions into focus, highlighting the challenges of maintaining unity as digital assets enter a new stage of political and institutional scrutiny.

Final Thought

The growing debate over Zcash’s role shows how sensitive the crypto landscape has become as Bitcoin moves further into mainstream politics and finance. Whether Zcash is a helpful complement or a distracting competitor will depend on how both communities navigate the rising noise and expanding institutional interest.