Jan van Eck stated that Bitcoin may not provide a sufficient level of encryption and privacy.
According to him, some long-time holders are exploring Zcash as a more private alternative.
VanEck does not rule out abandoning Bitcoin if the network's 'thesis' proves to be untenable.
📢CEO of investment company VanEck Jan van Eck has questioned the long-term technological resilience of Bitcoin. In an interview with CNBC, he stated that the asset's blockchain may not provide a sufficient level of encryption and privacy.
According to Van Eck, questions around the resilience of Bitcoin's cryptography, the risks of quantum computing, and the transparency of the network are becoming key for a number of long-standing investors. He emphasized that within the industry, not short-term price movements are being discussed, but fundamental parameters of the viability of the model itself.
The head of VanEck stated that the company considers digital assets according to the same criteria as traditional finance. He noted that the fund is ready to completely abandon Bitcoin if the underlying technology fails to meet expectations.
"We will abandon Bitcoin if we recognize the thesis as fundamentally unsound," he said.
At the same time, Van Eck reported that some early Bitcoin owners are exploring Zcash due to its more advanced level of privacy. He emphasized that the complete transparency of transactions on the Bitcoin network may contradict the growing demand for privacy.
"When you move money on the Bitcoin network, it is visible," he noted.
After the interview, Van Eck clarified that he sees in the current cycle the influence of expectations regarding quantum cryptography, a decrease in online activity after the halving, and investor interest in private coins. He also referred to the position of VanEck portfolio manager Pranav Kanade, who supported the idea of dollar-cost averaging in a bear market.
