Digital Currency Group (DCG) CEO Barry Silbert has forecasted a significant potential migration of capital within the cryptocurrency market. Speaking at Bitcoin Investor Week in New York, Silbert stated that 5% to 10% of Bitcoin's capital could eventually flow into privacy-focused cryptocurrencies such as Zcash (ZEC).
While remaining bullish on Bitcoin as a core portfolio holding, Silbert argued that its massive size limits explosive upside potential. "Unless the U.S. dollar completely collapses, Bitcoin is not going to go up 500x," he said. In contrast, he views smaller, focused projects like Zcash and the AI-driven network Bittensor (TAO) as offering 500x to 1,000x return potential due to their earlier growth stages.
Silbert's thesis hinges on the growing demand for financial privacy. He noted that Bitcoin's original narrative as anonymous digital cash is obsolete, with firms like Chainalysis and Elliptic enabling widespread transaction tracking. As institutional capital and regulatory oversight increase, he believes the value of built-in privacy technology will rise. Silbert doubts Bitcoin will integrate strong privacy features, leading him to expect capital rotation toward networks designed with privacy at their core, particularly those utilizing zero-knowledge proofs.
The comments carry weight given DCG's history. Its subsidiary, Grayscale, launched the first institutional Bitcoin investment vehicle in 2013 and now runs the Grayscale Zcash Trust, launched in 2017, which is working toward conversion into an ETF. Silbert also suggested Zcash could serve as a long-term hedge against potential quantum computing risks to Bitcoin, though he does not see this as an immediate threat.
Separately, Cardano founder Charles Hoskinson announced the mainnet launch of the Midnight privacy blockchain for the final week of March 2026. Revealed at the Consensus Hong Kong conference, the rollout will be supported by major partners including Google and Telegram. Hoskinson introduced Midnight's NIGHT token, which launched in December 2025 and is listed on exchanges like Binance, and criticized the approach of standalone privacy coins like Monero and Zcash, advocating instead for Midnight's model of "rational privacy" or selective disclosure.
