Privacy-focused cryptocurrency Zcash (ZEC) is making a name for itself with its rise despite the market decline.
Rising from its ashes, ZEC reached a new ATH while Bitcoin (BTC) and the majority of altcoins were falling.
While ZEC’s success continues to resonate across the industry, one analyst has warned that ZEC could divide Bitcoin’s political and cultural support base.
Bloomberg ETF analyst Eric Balchunas warned in his post from the X account that it could negatively affect Bitcoin at critical moments.
He assessed that the effort to promote privacy-focused cryptocurrencies separately could actually provide a ‘vote share’ at a time when Bitcoin needs more robust political and cultural support.
“Zcash looks like a third-party candidate like Gary Johnson or Jill Stein. It risks fragmenting support for Bitcoin at critical moments.”
However, industry leaders dispute these concerns. Timestamp founder Arman Meguerian dismissed the possibility of Bitcoin supporters defecting, saying, “I haven’t seen any Bitcoin maximalists show interest in Zcash. The claim that Bitcoin supporters will switch to ZEC is unrealistic.”
Jan3 founder Samson Mow also countered Balchunas’ concerns, saying, “Bitcoin superstars roll their eyes when they see Zcash.”
Mow stated that Zcash is unlikely to diminish Bitcoin’s political influence, and that the debate surrounding it has been overblown.
*This is not investment advice.