Arthur Hayes Flags Privacy Crypto as The Next Meta

Ben Graham · January 7

BitMEX co-founder Arthur Hayes is making bold calls again. In his recent essay “Suavemente,” he declared privacy crypto, not memes or faster blockchains, as the dominant story for 2026. His fund, Maelstrom, has made Zcash its second-largest holding after Bitcoin, funded by rotating out of Bitcoin BTC $91,391.93 1.38% Bitcoin BTC Price $91,391.93 1.38% /24h Volume in 24h $45.84B Price 7d Learn more and Ethereum ETH $3,167.22 0.03% Ethereum ETH Price $3,167.22 0.03% /24h Volume in 24h $21.06B Price 7d Learn more to chase outperformance.

Hayes isn’t alone. Naval Ravikant has also publicly backed Zcash ZEC $481.34 2.72% Zcash ZEC Price $481.34 2.72% /24h Volume in 24h $586.18M Price 7d Learn more , framing privacy as the next major trade. Their timing aligns with growing concerns: governments are intensifying on-chain surveillance, AI tools are eroding pseudonymity through behavioral tracking, and users are increasingly uneasy about public financial histories.

That shift already shows in the numbers. Zcash surged to an eight-year high in late 2025, briefly flipping Monero to become the largest privacy coin by market value.

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What Does “Privacy” Mean in This Case, Really?

What sets privacy coins apart? Most blockchains are fully transparent: anyone can trace transactions forever. Privacy coins obscure sender, receiver, and amount details. Zcash uses zero-knowledge proofs (zk-SNARKs), allowing users to prove a transaction is valid without revealing any data, like settling a bill without showing the receipt.

That matters because once your wallet links to your identity, your full transaction history sits in the open.

Zcash offers optional privacy: users can choose transparent or fully shielded transactions. Recent upgrades like Halo 2, NU5, and NU6 removed trusted setups, improved efficiency, and enhanced security, making private transactions easier and more trustworthy.

Usage tells the story. Shielded Zcash transactions rose from about 8% in early 2024 to roughly 31% by late 2025. More users now choose privacy by default.

Every cycle has a sleeper narrative!

In 2026, that sleeper is privacy.$ZEC did 18x. $XMR is coiling.

And no one’s prepared for what’s next.

— 𝕲𝖚𝖘𝖙𝖆𝖛𝖔𝕱𝖎𝖉𝖆𝖑𝖌𝖔 (@CoinTalkCEO) January 7, 2026

Beyond Zcash, Monero XMR $441.75 0.66% Monero XMR Price $441.75 0.66% /24h Volume in 24h $140.10M Price 7d Learn more remains the go-to for mandatory privacy, mixing transactions by default with ring signatures and stealth addresses. It’s favored in privacy-sensitive contexts but faces heavy regulatory scrutiny.

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Rising Regulation Puts Crypto Privacy Back on the Map

Several trends could fuel a hotter privacy meta in 2026. Rising regulation, like the EU’s new automatic reporting rules starting January 2026, highlights the limits of pseudonymous chains. High-profile Bitcoin seizures via chain analysis serve as wake-up calls. Meanwhile, institutional interest grows in compliant privacy solutions, such as selective disclosure via zk-proofs or encrypted stablecoins.

THE EU HAS OFFICIALLY ENDED CRYPTO PRIVACY WITH DAC8

As of January 1, 2026, the DAC8 law is live across the European Union. This marks the definitive end of anonymous crypto holdings for every resident in the member states.

What this means for you:

Automatic Reporting: Every…

— Heidi (@blockchainchick) January 6, 2026

On the tech side, composable privacy on fast chains like Solana is advancing quickly, potentially enabling private DeFi, prediction markets, and real-world asset tokenization without sacrificing speed.

Yet risks remain significant. Exchanges frequently delist privacy coins under regulatory pressure, reducing liquidity and increasing volatility. Fewer major players mean sharper price swings, and the sector sits at the tense intersection of user demand for confidentiality and regulatory demands for oversight.

For everyday investors, privacy is no longer fringe: it’s becoming a core concern as financial surveillance intensifies. But it’s not a passive trade. Understanding the technology, monitoring regulatory developments, and assessing exchange access are essential before exposure.

If you’re curious, start by learning how privacy works before buying. Explore how Arthur Hayes’ Zcash calls played out before, and follow Bitcoin privacy crackdowns to understand the risks.

As surveillance increases, the debate over who controls financial data is just getting started.

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