Markets Outlook (CoinDesk) Episode: "Why Cypherpunk’s CIO Calls Zcash the Most Mispriced Asset in Crypto" Date: March 27, 2026

Episode Overview

This episode of Markets Outlook dives deep into the growing importance of privacy in the digital age and why Will McAvoy, Chief Investment Officer of Cypherpunk and principal at Winklevoss Capital, believes Zcash is the most mispriced asset in crypto. Host Jen Senasi explores the intersection of privacy, AI, market misconceptions, and the regulatory landscape with McAvoy, who articulates a passionate thesis on the future of privacy-preserving technologies and their financial implications.

Key Discussion Points & Insights

The Fundamental Role of Privacy in Modern Society

• Privacy as the Foundation for Freedom

  • McAvoy opens by stressing that privacy is a basic prerequisite for freedoms like speech and protection from government overreach.
    • "You can't have freedom of speech unless you have privacy. If the government or a corporation knows...your thoughts...they can cut you off from exercising your freedom of speech." (00:00, 23:11)

• Erosion of Privacy and the Rise of AI

  • Observes that privacy has drastically declined over recent decades, especially given the increasing integration of AI into daily life.
    • "...we have the least amount of privacy that we've had maybe ever...AI coming much more integrated...people...are going to start questioning...the lack of privacy in their daily lives." (01:20)
  • The trade-off between privacy and convenience—pervasive since social media’s ascent—is moving into new, riskier territory as AI becomes both ubiquitous and deeply personal.
    • "Privacy for convenience...doesn’t really have a negative implication for you. I think we’re entering into a world with AI where...the lack of privacy could have a negative implication for you..." (03:16)

• The Scarcity and Value of Privacy

  • Privacy is becoming a scarce asset in society, and, as with all scarce assets, its value should increase.
    • "When supply is decreasing, it's very likely that the price should be a lot higher..." (01:20)

Privacy and AI: A Fateful Convergence

• AI is the Inflection Point

  • AI’s requirement for deep personal context—especially as interfaces become camera-based—will make the risks of privacy loss more apparent to everyday users.
    • "We're going to want to be giving [AI assistants]...all the context that we have on our lives...we're going to want to be assured that that data...is not going to be used against us." (03:16)
    • "I think...we...12 months out...we're sort of all wearing cameras...everything that we're doing is being recorded...that's going to be one of the inflection points where people start to really demand much more privacy." (22:14)

• Potential for Crisis to Drive Awareness

  • Risks are heightened with AI’s ability to rapidly process leaked or breached data for malicious ends.
    • "As soon as you apply...AI to those databases, that information can really be used against you." (05:18)

Zcash as "Cypherpunk Privacy": The Mispricing Thesis

• Zcash as Financial Privacy Infrastructure

  • McAvoy contends that Zcash is the "tradable monetary unit" of digital privacy, specifically financial privacy—critical as more of life goes online.
    • "If privacy is this scarce asset, Zcash is the tradable monetary unit of it...covers the financial and transaction layer." (06:22)

• Why Zcash Over Other Protocols?

  • Highlights "cypherpunk privacy," where users have true, uncompromised control, in contrast to protocols that offer only partial or superficial privacy (akin to Web 2 privacy models).
    • "A lot of other privacy protocols...are really just trying to rebuild Web two privacy on Web three Rails...We're focused on true privacy protocols." (07:30)
  • Zcash is "encrypted Bitcoin": built on Bitcoin’s codebase, hard supply cap, proof-of-work, but with strong privacy guarantees via zero-knowledge proofs (ZKPs).
    • "Zcash is essentially encrypted Bitcoin...makes the one sort of critical improvement to add privacy." (07:30)

• Comparison with Bitcoin and Gold

  • Bitcoin is only pseudonymous; sophisticated AI/data leaks can de-anonymize users.
    • "Any information about you will be used to de-anonymize the bitcoin blockchain...that's already happening." (10:53)
  • Gold is private only when physically held but is cumbersome and lacks digital transferability.
    • "Gold...you have to load the pallets onto a 747...that's all out in the open..." (12:20)

The Investment Case for Zcash

• Valuation & Price Scenarios

  • McAvoy is reluctant to give exact price predictions but sketches a scenario where Zcash could reach $2,000 if it attains just 2% of Bitcoin’s market cap.
    • "If you could convince...2% of the Bitcoin holders to...value a private version of Bitcoin...Zcash in the upper, close to 2,000...even higher if you include offshore wealth or gold owners." (09:12)

• Regulatory Concerns

  • Regulatory overhang is a risk but less so today; recent developments have been favorable (e.g., SEC ending its Zcash probe).
    • "The regulatory environment has done a total 180...constructive regulatory environment for crypto across the board." (15:12)
  • Draws parallels with Bitcoin’s resilience despite bans: "China banned bitcoin. Right. The price is only higher. So I’m not too worried about it." (15:12)

Cypherpunk’s Broader Privacy Vision

• Investment in Zodl: Zcash’s Wallet Ecosystem

  • Cypherpunk invested $5 million in Zodl, a privacy-first mobile wallet for Zcash, aiming to become the default user-friendly gateway to its privacy tech.
    • "Zodl is the front end for this super important privacy preserving backend technology, which is zcash." (17:43)
    • “Zodl is also the most popular Zcash wallet right now. So they're crushing it. They have a ton of great adoption.” (17:43)

• Beyond a Digital Asset Treasury

  • Cypherpunk’s ambition is to accumulate at least 5% of the Zcash network, but also to nurture a constellation of synergistic privacy techs—browsing, communications, data management, and more.
    • “Public privacy because we’re the only public company actually focused on privacy technologies...so much white space for us to operate.” (20:03)

Looking Forward: The Next 12 Months and Beyond

• Anticipated Developments

  • The coming emergence of "camera-based" AI interfaces will crystallize privacy concerns for everyday users, potentially leading to a privacy awakening.
    • "...once everyone realizes...they're being recorded by AI, you know, almost 24 7...that's going to be one of the inflection points..." (22:14)

• Ultimate Vision for Zcash

  • Envisions both individuals and AI agents using Zcash for payments and as a private store of value:
    • "There's certainly going to be a lot of motivation to use zcash for, for payments, whether it's you personally or, you know, the 10 AI agents that are working on behalf of you." (24:29)

Memorable Quotes & Moments

• On Privacy’s Primal Role:
  "Privacy is a prerequisite to many of the freedoms that we cherish as Americans." — Will McAvoy (23:11)

• On Zcash's Market Mispricing:
  "If privacy is this scarce asset, zcash is the tradable monetary unit of it." — Will McAvoy (06:22)

• On True vs Superficial Privacy:
  "We’re focused on true privacy protocols, ones that truly preserve your privacy. We think zcash is that." — Will McAvoy (07:30)

• On AI as an Inflection Point:
  "AI is really the jumping off point for people to realize that privacy is really important." — Will McAvoy (03:16)

• On Regulatory Shifts:
  "The regulatory environment has done a total 180 in the past couple years." — Will McAvoy (15:12)

Notable Timestamps

• 00:00 – McAvoy on privacy as prerequisite for freedom
• 01:20 – On privacy’s decline, scarcity, and coming inflection point with AI
• 03:16 – Privacy vs. convenience: how AI changes what’s at stake
• 06:22 – Zcash as the “tradable monetary unit” of privacy
• 07:30 – Why Zcash stands apart from other privacy protocols
• 09:12 – Price scenarios for Zcash
• 10:53 – Limitations of Bitcoin and gold as privacy assets
• 15:12 – Discussing regulatory risk and shifting environment
• 17:43 – Investment and vision for Zodl wallet & Cypherpunk’s strategy
• 20:03 – Building beyond digital asset treasury: a constellation of privacy tech
• 22:14 – The coming AI-driven privacy inflection point
• 23:11 – The personal and philosophical roots of McAvoy’s privacy advocacy
• 24:29 – Vision for Zcash use in the AI-powered economy

Conclusion

This episode offers a compelling exploration of the intersection of privacy, crypto assets, and AI. McAvoy’s conviction is clear: privacy is fast becoming the most undervalued—and valuable—commodity, with Zcash positioned as its key digital embodiment. As society stands on the cusp of an AI-powered transformation, the demand for robust privacy solutions—and the opportunity for investors—may be about to surge.