Concerns Beyond Market Swings
VanEck CEO Jan van Eck has voiced significant concerns regarding the fundamental encryption and privacy aspects of Bitcoin, suggesting that the asset management firm might divest from the cryptocurrency if these core issues prove to be irreconcilable.
During a recent appearance on CNBC, Van Eck indicated that the discussions currently taking place within the Bitcoin community extend beyond the typical short-term market fluctuations. He stated, "There's something else going on within the Bitcoin community that non-crypto people need to know about," during a segment on "Power Lunch" with anchor Brian Sullivan.
Evaluating Bitcoin's Long-Term Viability
Van Eck emphasized that VanEck's approach to evaluating Bitcoin's longevity mirrors its assessment of traditional financial assets. "Ultimately, VanEck has been around before BTC. We will walk away from BTC 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," he explained.
The Core of the Encryption and Privacy Debate
The CEO's remarks primarily focused on whether Bitcoin possesses "enough encryption" and "enough privacy," which he identified as increasingly central questions for a segment of the Bitcoin community. He also noted that some long-standing holders and self-proclaimed "maxis" have begun exploring Zcash, describing it as "sort of related to BTC with a lot more privacy."
Van Eck highlighted a potential conflict between Bitcoin's transparent ledger and the growing demand for transaction confidentiality. "When you move money around on the Bitcoin blockchain, you can see it," van Eck stated. "You can see it move from one wallet to another."
Post-Interview Statements and Market Context
Following the interview, Van Eck posted on X, asserting that the current bear market reflects "the on-chain reality of the halving cycle, quantum-breaking-encryption concerns and the better privacy of Zcash." He also shared guidance from VanEck portfolio manager Pranav Kanade, advising to "dollar cost average into bear markets."
Echoes of Concern in the Wider Community
These concerns have found resonance among other figures in the cryptocurrency and research spheres. Ethereum co-creator Vitalik Buterin, in a presentation at the Devconnect conference in Argentina on November 17, cautioned that quantum computing poses a threat to elliptic curve cryptography, stating, "Elliptic curves are going to die."
Quantum computing researcher Scott Aaronson echoed these sentiments in a November 13 blog post, suggesting that the current pace of hardware development makes it "a live possibility" that a quantum computer capable of running Shor's algorithm could be operational before the 2028 U.S. presidential election. Conversely, some have strongly refuted Van Eck's claims, with Jan3 CEO Samson Mow denying any shift among Bitcoin maximalists towards privacy-focused alternatives.
Market Performance and Zcash's Rise
During the CNBC interview, Bitcoin was trading at approximately $84,643. As of 9:15 a.m. UTC on Sunday, its price had risen to $86,204, marking a 2.4% increase over the preceding 24 hours. However, it remained down 7.7% year-to-date and 31.6% below its all-time high of $126,080 recorded on October 6.
In parallel with the intensifying discussions around privacy, Zcash has experienced a significant surge. It currently ranks as the 13th-most valuable cryptocurrency, with a market capitalization of $9.43 billion. Trading at $548.35, Zcash has seen a 17.3% increase in the last 24 hours, a 121.3% rise over 30 days, and an impressive 930% gain year-to-date. Van Eck's commentary suggests that the debate surrounding Bitcoin's long-term architectural resilience, particularly concerning encryption readiness and privacy models, is likely to intensify as the market progresses into 2026.