Today in Crypto: Bloomberg’s Eric Balchunas says Zcash could reduce political and cultural support for Bitcoin BlackRock’s clients aren’t factoring Bitcoin’s global payments potential into their investment thesis. Meanwhile, Peter Schiff says selling OG to ‘weak’ hands will make future recessions more severe.
Bloomberg ETF Analyst Warns Zcash Risks ‘Splitting Vote’ Against Bitcoin
Eric Balchunas, senior ETF analyst at Bloomberg, warned that Zcash could adversely impact Bitcoin at this critical moment.
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Balchunas’ comments come as the Bitcoin vs. Zcash debate rages on. Timestamp founder and CEO Arman Meguerian dismissed the idea that BTC supporters are turning to Zcash. “I don’t know a single Bitcoin maxi who thinks about Zcash,” he said wrote On X.
Jan3 Founder Samson Mow echoing sentiment, claiming that Bitcoin maxis are “only looking at Zcash to roll their eyes.”
BlackRock’s Bitcoin clients aren’t ‘underwriting’ global payments
Robbie Mitchnik, head of digital assets at BlackRock, said clients of most of the world’s largest asset managers are not considering the use of Bitcoin for daily payments when deciding whether to invest in the asset.
“I think for us, and for most of our clients today, they’re not really underwriting that global payments network issue,” Michnik. Said During a podcast interview published on YouTube on Friday.
“It’s probably the inverse of the option-value that’s out of the money,” Michnik said.
He said that doesn’t mean Bitcoin won’t eventually gain widespread use in payments, but he called that scenario “a little more speculative,” emphasizing that investors are more focused on the “digital gold” or store-of-value thesis.
“A lot needs to happen in Bitcoin scaling, Lightning and other matters to make this possible,” he said. In August 2024, Galaxy Research suggested that most Bitcoin layer-2 scaling networks, particularly “rollups”, may not be sustainable in the long term despite their popularity as a promising way to keep Bitcoin payments cheap, fast, and decentralized.
Bitcoin circulating in ‘weak’ hands will make future declines more severe: Peter Schiff
According to gold advocate Peter Schiff, the movement of Bitcoin (BTC) from strong hands to “weak” hands through continued selling from long-term holders, also known as “OGs,” will make future Bitcoin market declines more severe.
Schiff is one of the most vocal critics of Bitcoin and continues to argue that it is overvalued and destined to fail. In the Saturday X Post, he Said,
“Some argue that after all these years, BTC is finally due for its IPO, as there is enough liquidity for OG to cash out. I agree, but so much BTC moving from strong to weak hands not only increases the float, but also means that future selloffs will be larger.”
The comments come amid a broader downturn in the crypto market and investors fearing that the next bear market has already begun.
