VanEck CEO Questions Bitcoin’s Privacy and Encryption, Sparks Industry Debate
VanEck CEO Jan van Eck has questioned whether Bitcoin offers sufficient encryption and privacy, suggesting that some long-term holders are now exploring alternatives like Zcash as the market reexamines its long-term assumptions.
Speaking on CNBC’s Power Lunch with anchor Brian Sullivan on Friday, van Eck emphasized that the concerns go beyond short-term price movements. “There’s something else going on within the Bitcoin community that non-crypto people need to know about,” he said.
Van Eck added 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.”
While he did not define “the Bitcoin thesis,” van Eck’s comments pointed to core questions about Bitcoin’s long-term viability, including the strength of its cryptography, resilience against quantum computing, and whether the network’s privacy model aligns with user expectations. He highlighted concerns over whether Bitcoin has “enough encryption” and “enough privacy,” which are increasingly central in parts of the Bitcoin community.
Privacy Coins Gain Attention
Van Eck noted that some Bitcoin maximalists are now evaluating Zcash, describing it as “sort of related to Bitcoin with a lot more privacy.” He observed that Bitcoin’s transparent ledger may conflict with rising expectations around 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.”
Following 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 cited VanEck portfolio manager Pranav Kanade’s advice to “dollar cost average into bear markets.”
At the time of the interview, Bitcoin traded around $84,643. By Nov. 23, 9:15 a.m. UTC, the price had risen to $86,204, up 2.4% in 24 hours but still down 7.7% YTD and 31.6% below its all-time high of $126,080 on Oct. 6, 2025.
Industry Reactions
Responses were mixed.
- Some supported van Eck’s concerns. Ethereum co-creator Vitalik Buterin warned at the Devconnect conference in Argentina that quantum computing could threaten elliptic curve cryptography: “Elliptic curves are going to die.” Quantum researcher Scott Aaronson also highlighted the possibility that a fault-tolerant quantum computer could run Shor’s algorithm before the 2028 U.S. presidential election.
- Others strongly disagreed. Samson Mow, CEO of JAN3, dismissed the idea that Bitcoin maximalists are moving to privacy coins, posting 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 Surges Amid Privacy Debate
Privacy-focused Zcash has seen rapid gains. ZEC is now the 13th-largest cryptocurrency, with a market capitalization of $9.43 billion and a price of $578.35—up 17.3% in 24 hours, 121.3% over the past 30 days, and 930% year-to-date. For context, ZEC traded near $55.06 on Sept. 24.
Van Eck’s remarks, combined with ongoing discussions about encryption, privacy, and quantum readiness, suggest that debates over Bitcoin’s long-term architecture will likely intensify as 2026 approaches, particularly as traders reassess the halving cycle’s impact on the market.
