Why the Winklevosses Are Going All-In on Zcash

Cameron and Tyler Winklevoss are making a major wager on Zcash (ZEC), after launching a digital asset treasury (DAT) seeded with $100 million to accumulate Zcash, a privacy-centric fork of Bitcoin’s codebase. Their goal: collect up to 5% of Zcash’s circulating supply, with the fund already holding 233,644 ZEC.

Speaking to Cointelegraph at Bitcoin Amsterdam, Tyler Winklevoss described Zcash as “encrypted Bitcoin,” arguing that Bitcoin and Zcash serve fundamentally different roles in a maturing crypto ecosystem.

“We’re huge fans of Bitcoin — and hodlers, of course — but Zcash is where you transact your value. The catalyst for Bitcoin was the financial crisis of 2008. The catalyst for privacy is the dawn of the AI age.”

Zcash’s recent performance supports their thesis. The protocol has been one of the standout assets of 2025, fueled by rising anxiety over AI-driven surveillance and data harvesting. Advocates say Zcash’s zero-knowledge cryptography — originally built by cypherpunk pioneer Zooko Wilcox — is finally hitting the cultural moment it was designed for.

Building a Privacy Treasury: Why Cypherpunk Is Hoarding ZEC

Cypherpunk’s aggressive accumulation strategy positions Zcash as a cornerstone for privacy-focused digital treasuries. The twins believe a significant ZEC reserve will enhance the asset’s scarcity profile and help establish it as the transactional privacy layer of the crypto economy.

Their move aligns with the broader rise of digital asset treasuries, with 2025 marking the ascent of institutional crypto balance sheets.

Industry reaction has been mixed. Supporters point to Zcash’s renewed momentum and long-standing cypherpunk roots. Critics, however, question whether privacy protocols can coexist with tightening global regulation and mounting compliance expectations.

Still, Tyler insists the goal is not to evade oversight but to mainstream accessible, lawful privacy: “It’s about self-sovereignty in an era where AI changes everything.”

This year has also been a turning point for the Zcash community itself. Developers and early supporters say the protocol has reached an inflection point similar to past milestones in Bitcoin’s journey — including the 2013 Cyprus “bail-in” that triggered BTC’s first major global recognition.

Crypto Isn't a Zero-Sum Game

The Winklevoss twins emphasize that crypto’s evolution is not a zero-sum fight between chains. Instead, they see the ecosystem as a layered, complementary stack: Bitcoin as the digital store of value, Ethereum as the programmable settlement layer, and Zcash as the privacy-preserving payments rail.

“Bitcoin proved non-government money in a big way,” Tyler said. “Ethereum proved programmability. Now Zcash brings privacy. All of these innovations grow the entire pie.”

Cameron echoed this sentiment, pointing out that new protocols attract new developers, use cases and users — all of which ultimately expand Bitcoin’s reach too.

The twins speak from a long history in the space. Their early bet on Bitcoin — reportedly 100,000 BTC purchased a decade ago — demonstrated their willingness to adopt emerging technologies well before institutional interest took hold. Their investment in Zcash marks another such conviction play.

As AI accelerates and privacy becomes a global talking point, Zcash’s role as an “encrypted Bitcoin” may grow stronger. But its success will depend on how well privacy technologies can balance regulatory realities with the original cypherpunk promise of user sovereignty. For the Winklevoss twins, that balance is not just achievable — it is essential to the next era of crypto.