VanEck CEO expresses doubts about Bitcoin's cryptographic stability
- Jan van Eck stated that Bitcoin may not provide sufficient levels of encryption and privacy.
- Some long-standing holders are exploring Zcash as a more private alternative, he said.
- VanEck does not rule out abandoning Bitcoin if the network's thesis proves untenable.
Jan van Eck, CEO of investment firm VanEck, questioned the long-term technological sustainability of Bitcoin. In an interview with CNBC, he stated that the asset's blockchain may not provide sufficient encryption and privacy.
According to van Eck, questions surrounding the strength of Bitcoin's cryptography, the risks of quantum computing, and network transparency are becoming key concerns for a number of long-standing investors. He emphasized that the industry is not discussing short-term price movements, but rather the fundamental parameters of the viability of the model itself.
VanEck's CEO stated that the company views digital assets using the same criteria as traditional finance. He noted that the fund is prepared to abandon Bitcoin entirely if the underlying technology fails to meet expectations.
“We will abandon Bitcoin if we find the thesis fundamentally flawed,” he said.
Van Eck also reported that some early Bitcoin holders are exploring Zcash due to its more advanced privacy features. He emphasized that the complete transparency of Bitcoin transactions may conflict with the growing demand for privacy.
“When you move money around on the Bitcoin network, it's visible,” he noted.
After the interview, van Eck clarified that he sees the current cycle as influenced by expectations for quantum cryptography, a decline in on-chain activity after the halving, and investor interest in privacy coins. He also cited the position of VanEck portfolio manager Pranav Kanade, who supported the idea of cost averaging in a bear market.
As a reminder, we reported that Quarkslab experts conducted the first public audit of Bitcoin Core.
Source: cryptonews.net
