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Feb 12
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AVOID
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Justin Drake
Researcher at Ethereum Foundation
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Privacy pools are the "very first target" for quantum computers because funds can be stolen "without anyone noticing" (unlike Satoshi's coins where theft is visible). If the core value proposition (privacy) is broken AND the supply can be silently hyper-inflated/drained, the asset becomes uninvestable. The "store now, decrypt later" risk also retroactively destroys the privacy value of past transactions. AVOID privacy coins that rely on elliptic curve cryptography without immediate migration plans. Privacy chains successfully migrate to post-quantum SNARKs in time. |
Unchained (Chopping Block)
Is Nic Carter Right? How Serious Is Bitcoin's...
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Feb 12
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AVOID
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Justin Drake
Researcher at Ethereum Foundation
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Quantum computers break the soundness of the cryptography used in privacy pools (like Zcash). Unlike public chains where theft is visible, a quantum attacker could drain a privacy pool silently. No one would know the inflation occurred or funds were stolen until the pool is empty. This makes them the "first target" for quantum attackers. AVOID. Existential threat to the core value proposition. Quantum timeline delays. |
Unchained (Chopping Block)
Coinbase Earnings, Bitcoin vs Tech, and Crypt...
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Feb 10
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WATCH
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Peter Van Valkenburgh
Coin Center
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The DOJ is applying "conspiracy to money launder" statutes to software developers who publish code used by criminals, even if the devs don't control the funds. Peter notes this creates "strict liability" for publishing privacy software. Until the "Blockchain Regulatory Certainty Act" (BRCA) or similar legislation passes to explicitly exempt non-custodial software publishers, the legal risk premium on privacy protocols remains extreme. The sector is effectively uninvestable for institutions until this legal "wild goose chase" ends. WATCH (Avoid until regulatory clarity). Legislative failure leads to a permanent ban on privacy tech development in the US. |
Unchained (Chopping Block)
Crypto’s Legal Lines, MegaETH Launched But De...
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Jan 29
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AVOID
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Laura Walter
Founder/CPA, CryptoTaxGirl
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"If you don't have the records and then you're audited... the default is to just treat it as a $0 basis... IRS sees that like you were using these privacy coins like Monero... there's just a higher burden of proof." The primary utility of privacy coins is obfuscation. However, using them now carries a maximum financial penalty (100% taxable gains due to $0 basis default) if audited. The risk/reward for holding these assets in a compliant portfolio has collapsed. AVOID. Regulatory friction effectively demonetizes these assets for US taxpayers. Non-US demand remains robust regardless of IRS rules. |
Unchained (Chopping Block)
Your 2025 Crypto Tax Guide: What You Need To ...
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