Ammous questions whether privacy-focused coins like Zcash can compete with Bitcoin’s hard-money properties, igniting a fierce industry debate.
Ammous Challenges Privacy as Core Feature of Money
Bitcoin economist Saifedean Ammous triggered intense debate after questioning whether privacy is as essential to money as resistance to debasement. In an interview with Cointelegraph, Ammous asked:
“How much demand is there for money that does not get debased versus how much demand is there for money that allows you to maintain your privacy?”
Ammous criticized Zcash, calling it a “shitcoin” and casting doubt on its 2016 trusted setup, which established the cryptographic base for its privacy features. He argued that Zcash’s shielded system may hinder the ability to audit total token supply, despite publicly viewable metrics showing both shielded and unshielded pools.
Industry Leaders Reject Ammous’s View as a False Choice
Prominent figures quickly pushed back, insisting that privacy and hard-money properties are not mutually exclusive.
Mert Mumtaz, co-founder of Helius, called Ammous’s argument a “false dichotomy,” adding:
“You should have money that is not debased and is private… If it can be seen, it can be seized.”
Barry Silbert, founder of Digital Currency Group, reminded the community that privacy was once a central focus for Bitcoiners, while Zcash co-founder Zooko Wilcox noted that the Canadian government easily traced Bitcoin used during the 2022 trucker protests — a stark example of blockchain transparency.
Bitcoin Privacy: On-Chain Limits and Layer-2 Solutions
Ammous acknowledged that privacy technology continues to evolve, but argued that on-chain privacy will remain extremely difficult for Bitcoin and other blockchains. Instead, he suggested that Bitcoin’s privacy needs may be better served by second-layer protocols, not base-layer changes.
He maintained that people ultimately value hard money over private money, stating that the narrative around privacy demand is “massively overblown” and often used as marketing for alternative cryptocurrencies.
Despite the criticism, Zcash has seen renewed momentum as 2025 nears its end. It recently topped Coinbase’s search rankings, and ZEC’s price surged 10x, briefly pushing its market cap above $10 billion.
The clash between Ammous and privacy advocates highlights a deeper philosophical divide:
Is the future of money defined more by scarcity and debasement-resistance, or by user privacy and censorship-resistance?
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.