Bitcoin Advocate Saifedean Ammous Sparks Debate on Privacy in Money
Bitcoin advocate Saifedean Ammous has ignited a lively debate between Bitcoiners and privacy advocates after questioning the importance of privacy as a key characteristic of money in an exclusive interview with Cointelegraph. Ammous, the author of The Bitcoin Standard, raised concerns about the initial launch of the Zcash project, which involved a trusted setup ceremony in 2016 to generate the cryptographic parameters for its privacy features.
Ammous described Zcash as a “shitcoin” and expressed skepticism about the demand for money that prioritizes privacy over being a hard, debased currency. “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 said. He also questioned whether the privacy features of Zcash would limit the ability of people to trust the total supply of ZEC tokens, stating that “the anonymity benefits come at the expense of the auditability benefits.”
Privacy vs. Hard Money: Industry Reactions
The comments from Ammous sparked a debate on social media, with several key figures from the cryptocurrency industry weighing in on the role of privacy in the use of money. Helius co-founder Mert Mumtaz described Ammous’s question as a “false dichotomy,” arguing that “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 also emphasized the importance of privacy for Bitcoin supporters, stating that “I’m old enough to remember when all hardcore Bitcoiners cared about privacy. Fortunately, many still do.”
Zcash co-founder Zooko Wilcox highlighted the limitations of Bitcoin’s transparent blockchain, citing the example of the Canadian government tracking down Bitcoin addresses linked to striking truckers. Wilcox argued that privacy is essential for a currency to be truly free from state control. 
Evolving Landscape of Privacy in Blockchains
Ammous conceded that privacy in blockchains is an evolving phenomenon and that some of the privacy features that BTC users might want can be entrusted to layer-2 protocols and platforms. “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,” Ammous said. He emphasized that his academic background remains rooted in the belief that hard money is essential for prosperity and economic growth.
Ultimately, the debate surrounding privacy in money highlights the complex trade-offs involved in designing a currency that balances competing values such as security, transparency, and freedom. As the cryptocurrency landscape continues to evolve, it is likely that we will see ongoing innovation and experimentation in the area of privacy and blockchain technology. For more information, read the full article on Cointelegraph: https://cointelegraph.com/news/hard-money-vs-privacy-saifedean-ammous-questions-privacy-push?utm_source=rss_feed&utm_medium=rss_tag_bitcoin&utm_campaign=rss_partner_inbound
