Key Takeaways
- Saifedean Ammous sparked debate by questioning the importance of privacy as a key characteristic of money, contrasting it with resistance to debasement.
- Ammous criticized Zcash, labeling it a shitcoin due to its trusted setup and perceived trade-off between anonymity and auditability.
- Industry figures like Mert Mumtaz and Barry Silbert countered Ammous’s views, emphasizing the necessity of privacy for money to be free from state control.
- The debate highlights the fundamental differences between Bitcoin and privacy-focused cryptocurrencies like Zcash regarding transaction transparency and user anonymity.
- Ammous believes that privacy solutions for Bitcoin can be developed on layer-2 protocols, avoiding the complexities of on-chain privacy.
The Bitcoin Standard Author on Privacy vs. Hard Money
Bitcoin advocate Saifedean Ammous stirred a debate within the crypto community after questioning the significance of privacy as a core feature of money in an interview. His comments highlighted a divide between Bitcoin proponents and privacy advocates.
“This is the question. 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 stated, posing a crucial question about the priorities of cryptocurrency users.
Ammous, known for his book, The Bitcoin Standard, referred to Zcash as a shitcoin and voiced concerns regarding its initial launch. His skepticism stemmed from the trusted setup ceremony in 2016, which was necessary for generating the cryptographic parameters that enable Zcash’s privacy features.
“The whole thing is built on a trusted setup, where you have to trust a bunch of people who started the whole thing. I’m not in any mood to get into these kind of stupid games,” Ammous remarked, expressing his reservations about the project’s foundational security assumptions.
⚡ Many crypto enthusiasts value the decentralized nature of cryptocurrencies, seeking alternatives to traditional financial systems. However, there are trade-offs, and debates often arise on aspects like privacy versus transparency. How do you personally prioritize these features, and why?
While acknowledging his limited knowledge of Zcash’s protocol, Ammous also questioned whether its privacy features might compromise the ability to verify the total supply of ZEC tokens.
“As I understand, the anonymity benefits come at the expense of the auditability benefits.”
Zcash offers users the option to use shielded and unshielded ZEC for transactions. Shielded ZEC provides enhanced privacy by encrypting transaction details, including the sender, receiver, and amount. This is accomplished through zero-knowledge proofs, which allow transaction verification without revealing sensitive information.
Despite Ammous’s concerns, both shielded and unshielded Zcash pools are publicly verifiable through several blockchain explorers.
Understanding Privacy in the Context of Hard Money
Several prominent figures in the cryptocurrency space joined the discussion on X following Ammous’ remarks regarding Zcash and the role of privacy in monetary systems.
So, what do hardcore Bitcoiners actually think about Zcash? 🤔
To quote @saifedean – “Zcash is a shitcoin.”
Honestly, I expected that answer. But what he said about privacy and money was even more interesting 👇
“This is the question. How much demand is there for money that… pic.twitter.com/4rDQWzcTcj
— Gareth Jenkinson (@gazza_jenks) November 27, 2025
Helius co-founder Mert Mumtaz challenged Ammous’s assertion of monetary non-debasement versus privacy as a false dichotomy, arguing that the two aren’t mutually exclusive and both are needed for true financial freedom.
“You should have money that is not debased and is private. That’s zcash. Further, you just can’t have money that’s free from the state unless it’s private. If it can be seen, it can be seized.”
Digital Currency Group founder and CEO Barry Silbert emphasized that privacy remains a central concern for many Bitcoin advocates, even if perspectives may have shifted over time.
“I’m old enough to remember when all hardcore Bitcoiners cared about privacy. Fortunately, many still do.”
📍 The concept of hard money, often associated with assets like Bitcoin, emphasizes a limited supply and resistance to inflation. This contrasts with fiat currencies controlled by central banks. Understanding these economic principles can help clarify the motivations behind different cryptocurrency preferences.
Zcash co-founder Zooko Wilcox highlighted a real-world example where the Canadian government tracked Bitcoin addresses linked to protesting truckers due to the transparent nature of Bitcoin’s blockchain.
The debate over privacy in money and the distinctions between Zcash and Bitcoin continued among X users, underscoring the diverse opinions within the cryptocurrency community.
The Evolution of Privacy in Blockchains
Ammous acknowledged that blockchain privacy is an evolving field. Regarding Bitcoin, he suggests that layer-2 protocols and platforms could potentially provide the privacy features that BTC users desire.
“On the issue of privacy, it’s interesting how it’ll evolve. One unpopular opinion I have is that onchain privacy is very difficult and continues to get more difficult. That’s not necessarily a bad thing because people can get the privacy they want on second layers and I don’t think it compromises it.”
✅ Layer-2 solutions enable faster and cheaper transactions by operating on top of an existing blockchain (layer-1). For Bitcoin, examples include the Lightning Network, which facilitates micro-transactions and potentially enhances privacy.
Ultimately, Ammous’s academic background reinforces his conviction that hard money is essential for fostering economic growth and prosperity. His focus remains fixed on the properties of sound, non-debasable money above all else.
“I think people would rather have hard money that is not private, over easy money that is private. The narrative that people want privacy in their money, I think is massively overblown in order to produce marketing for shitcoins,” he stated, expressing his skepticism towards privacy-focused cryptocurrencies.
Ammous further argued that money, by its very nature, is an anti-private technology, asserting that every exchange inherently leaves traces of information, particularly in the digital age. This inherent transparency poses challenges for achieving complete privacy in monetary transactions.
📊 Different cryptocurrencies offer varying degrees of privacy. Bitcoin, while pseudonymous, has a transparent blockchain. Cryptocurrencies like Zcash utilize advanced cryptographic techniques to provide greater anonymity, but this comes with design and trust trade-offs that some, like Ammous, find concerning.
“So it’s very difficult to make money into something that is private and onchain, it’s always going to be difficult. But what people really want is resistance to debasement. That’s the thing that actually has a $300 trillion total addressable market.”
Zcash experienced a surge in interest as 2025 approached its end. This renewed attention led to price appreciation for ZEC and highlighted the ongoing demand for privacy-focused solutions within the cryptocurrency market.
Frequently Asked Questions about Privacy and Cryptocurrency
Why is privacy important in cryptocurrency?
Privacy proponents argue that it protects users from surveillance, discrimination, and potential threats. It allows individuals to transact freely without fear of their financial activities being exposed or exploited.
What are the trade-offs between privacy and auditability in cryptocurrencies?
Some privacy-enhancing technologies can make it more difficult to verify the total supply and transaction history of a cryptocurrency. This can raise concerns about transparency and trust, as highlighted in the discussion around Zcash.
How do layer-2 solutions enhance privacy for Bitcoin users?
Layer-2 protocols like the Lightning Network enable off-chain transactions, reducing the amount of information recorded on the main Bitcoin blockchain. This can provide users with greater privacy for their transactions.
Is privacy a fundamental requirement for money?
This is a matter of ongoing debate. Some argue that privacy is essential for money to function as a tool for freedom and independence, while others believe that resistance to debasement and scarcity are more critical attributes.
Final Thoughts on Privacy in Cryptocurrency
The debate between Saifedean Ammous and privacy advocates underscores the complex and evolving landscape of cryptocurrency. While Ammous prioritizes hard money principles and resistance to debasement, others emphasize the importance of privacy for financial freedom. The ideal balance between these competing priorities remains a subject of ongoing discussion and innovation within the crypto community.
Ultimately, the future of privacy in cryptocurrency will likely involve a combination of on-chain and off-chain solutions, each with its own set of trade-offs. As technology advances and user preferences evolve, the industry will continue to explore new ways to balance privacy, security, and transparency in decentralized finance.
