Barry Silbert makes a big bet on privacy coins, expecting ZEC and TAO to grow 500x

Barry Silbert, co-founder and CEO of Digital Currency Group (DCG), continues to reinforce the investment thesis that financial privacy is not only a “fundamental right” but also the next major asymmetric opportunity in the crypto industry.

Speaking at the Bitcoin Investor Week conference in New York on Wednesday, Silbert—an experienced Bitcoin investor—stated:

“I am extremely optimistic about Bitcoin as a core component of a diversified portfolio. However, I am looking for projects with strong transformative potential, with growth prospects of 100, 500, even 1,000 times.”

He candidly acknowledged that, unless the US dollar completely collapses, Bitcoin is unlikely to increase 500 times from its current level. Conversely, he believes projects focused on privacy and new infrastructure, such as Zcash (ZEC) or Bittensor (TAO), could achieve such explosive growth. “Therefore, we allocate our portfolio in that direction,” Silbert said, referencing blockchain security applications using zk-proof technology and networks focused on AI.

This statement is particularly notable given that Grayscale—DCG’s subsidiary—launched the first organized Bitcoin investment fund in 2013 (Grayscale Bitcoin Trust), which has now transitioned into one of the most liquid Bitcoin spot ETFs on the market.

While maintaining a positive outlook on Bitcoin, Silbert admits that the “anonymous cash” narrative of Bitcoin is no longer relevant in the context of blockchain analysis firms like Chainalysis or Elliptic becoming increasingly sophisticated. He also questions whether this original blockchain will truly integrate robust security features, despite users’ clear demand for “using digital money while maintaining privacy.”

Privacy as the New Focus

From this perspective, Silbert believes that some of the capital currently flowing into Bitcoin may shift toward privacy-focused crypto assets.

“Our bet is that in the next few years, about 5%–10% of Bitcoin’s value will shift into privacy-centric cryptos,” he said.

Currently, Grayscale operates the Grayscale Zcash Trust—a publicly traded fund launched in 2017 and currently under review for conversion into an ETF. Previously, the company also offered investment products for the ZEN token of the Horizon network, which now functions as a Layer 3 base.

Regarding the threat of quantum computing— the hypothesis that quantum computers could break elliptic curve cryptography and threaten old Bitcoin addresses—Silbert believes this is not an immediate danger for Bitcoin. However, he emphasized: “Zcash is an excellent hedge.”

Although DCG has supported Zcash for many years, Silbert says he is increasingly comfortable discussing financial privacy, especially given Paul Atkins’ role as Chairman of the U.S. Securities and Exchange Commission (SEC).

“Right now, privacy is my top priority,” he concluded.