VanEck CEO Questions Bitcoin’s Encryption and Privacy, Sparks Debate
VanEck CEO Jan van Eck has raised questions about Bitcoin’s encryption and privacy, suggesting that some longtime holders are exploring alternatives like Zcash as the market reexamines long-term assumptions.
Speaking on CNBC’s Power Lunch with Brian Sullivan on Friday, van Eck emphasized that concerns go beyond short-term price swings. “There’s something else going on within the Bitcoin community that non-crypto people need to know about,” he said.
He noted that VanEck evaluates Bitcoin like any traditional asset. “Ultimately, VanEck has been around before Bitcoin. We will walk away from Bitcoin if we think the thesis is fundamentally broken. We don’t right now, but you always have to look at the underlying technology and the crypto.”
Van Eck did not precisely define “the Bitcoin thesis,” but his remarks highlighted concerns about long-term viability, including cryptography strength, readiness for quantum computing, and whether the network’s privacy model meets user expectations. He described questions of “enough encryption” and “enough privacy” as increasingly central to discussions within parts of the Bitcoin community.
Exploring Privacy Coins
Van Eck pointed out that some self-described Bitcoin maximalists have begun examining Zcash, describing it as “sort of related to Bitcoin with a lot more privacy.” He stressed that Bitcoin’s transparent ledger can conflict with growing expectations for transaction confidentiality: “When you move money around on the Bitcoin blockchain, you can see it. You can see it move from one wallet to another.”
After the interview, van Eck summarized on X that the current Bitcoin bear market reflects “the onchain reality of the halving cycle (bearish for 2026), quantum-breaking-encryption concerns and the better privacy of Zcash.” He also shared portfolio manager Pranav Kanade’s guidance to “dollar cost average into bear markets.”
At the time of the CNBC interview, Bitcoin traded around $84,643. By 9:15 a.m. UTC on Nov. 23, the price was $86,204, up 2.4% in 24 hours, down 7.7% year to date, and 31.6% below its all-time high of $126,080 on Oct. 6, 2025.
Industry Response
Reactions were mixed. Some supported van Eck’s concerns:
- Ethereum co-creator Vitalik Buterin, speaking at Devconnect in Argentina, warned that quantum computing could threaten elliptic curve cryptography, saying, “Elliptic curves are going to die.”
- Quantum researcher Scott Aaronson noted in a Nov. 13 blog post that a fault-tolerant quantum computer capable of running Shor’s algorithm could become a reality before the 2028 U.S. presidential election.
Others disagreed strongly. Samson Mow, CEO of JAN3, dismissed the idea that Bitcoin maximalists are moving to privacy coins, writing on X: “You wouldn’t be able to point out a Bitcoin Maxi even if they were standing in front of you… stay in your lane and push the latest shitcoin narrative.”
Zcash Gains Amid Privacy Debate
Zcash’s ZEC token has surged amid growing privacy discussions. It is now the 13th-largest cryptocurrency with a market capitalization of $9.43 billion, trading at $578.35—up 17.3% in 24 hours, 121.3% over 30 days, and 930% year to date. For context, ZEC traded near $55.06 on Sept. 24.
Van Eck’s remarks, coupled with broader conversations about encryption, privacy, and quantum readiness, suggest that debates over Bitcoin’s long-term architecture are likely to intensify as 2026 approaches and traders reassess the halving cycle’s influence on the market downturn.
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