Privacy cryptocurrencies will become more popular, says DCG CEO

Charlie Taylor

In his first public interview in eight months, Barry Silbert, co-founder and CEO of the Digital Currency Group, emphasized investments in privacy and privacy currencies when discussing what protocols and areas he was following closely. In an appearance this morning at First Mover at CoinDesk TV, Silbert said he believes privacy currencies will become more attractive to investors and mentioned two currencies he is particularly excited and focused on: Zcash and Horizen.

(…) I think privacy is – and will become – a more popular investment topic, said Silbert.

Zcash, currently the 51st largest cryptocurrency by market capitalization, was developed by the Electric Coin Company (ECC). ECC recently announced a timeline for the release of a variety of protocol upgrades that include privacy improvements.

How do privacy coins perform?

Justin Barlow, a research analyst at data company The Tie, recently said that, compared to other sectors, privacy coins have performed relatively well this year.

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Privacy coins average around 550% year-to-date. For comparison, smart contract platforms on average rose by only about 350% (…) ”, said Barlow. “Privacy currencies underperformed DeFi (~ 875%) and exchange tokens (~ 1,250%).

Barlow said there is an argument for privacy currencies, as people value non-traceable transactions. "Over time, as Bitcoin has become more popular, many in the community have realized that BTC transactions are easily traceable," he said. “Those who were defenders of anonymity or now pseudo-anonymity of the Bitcoin blockchain can gravitate towards privacy currencies. Keep in mind that Chainalysis found that only 0.9% of Zcash transactions are fully shielded, so it’s not entirely how much demand is still there. "

Privacy increasingly under scrutiny

Silbert's comments come amid an exciting and worrying period for privacy and cryptocurrency. As bitcoin is growing and the NFT craze continues, attention around cryptocurrencies is increasing in general – and privacy is an issue that will again come to the fore in a variety of debates.In the first report by the Cryptocurrency Council on Innovation , a newly formed trading group, former acting CIA director Michael Morrell wrote that “generalizations about the use of bitcoin in illicit finance are significantly exaggerated” and “blockchain analysis is highly effective in combating crime (… ). ”Although the report was seen as a boon for bitcoin, in a Twitter topic Regarding the report, Swihart noted: “The fact that Bitcoin's crimes are overblown appears to be consistent with the data.” Swihart said the report seemed like an attempt to transfer BTC's risk to so-called privacy cryptocurrencies, which seek to increase the anonymity.See too: That privacy cryptocurrency could rise 300% in 2022, according to Coin Bureau

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