CZ and Chamath Say Crypto’s Biggest Problem Isn’t Price

Two powerful voices came to the same conclusion in one of the recent episodes of the All-In Podcast. Both Binance founder Changpeng Zhao and investor Chamath Palihapitiya have said that the biggest unaddressed issue in crypto is privacy. Whereas markets tend to be price-oriented ETF-oriented or regulation-oriented, they were oriented towards something even more essential. Crypto does not have lower level, native privacy. Consequently, mainstream adoption is not being done.

🎙️ NEW: CZ AND CHAMATH WARN PRIVACY GAP IS CRYPTO’S BIGGEST HURDLE

Binance founder CZ and investor Chamath Palihapitiya speak on the lack of robust, native privacy protections fundamentally limiting Bitcoin and broader crypto from achieving true mainstream ubiquity. pic.twitter.com/9z340PkTJx

— Coin Bureau (@coinbureau) February 11, 2026

Bitcoin’s Transparency Cuts Both Ways

The transparent ledger of Bitcoin was made to be trustworthy. Nonetheless, the same transparency forms issues on a scale. Chamath states that traceable transactions of Bitcoin are a violation of fungibility. Every coin carries history. Therefore, Bitcoin is not treatable like cash by the users. In addition to that, pseudonymity becomes even more undermined when exchanges implement KYC. That change makes blockchain operation a stable record of public record that is attached to real identities.

CZ pointed out the real-life risks that this transparency poses. Booking a hotel. Paying a contractor. Sending funds to family. Patterns can be revealed by every action. The patterns uncover addresses, habits and locations with time. In certain areas, such exposure endangers individual lives. It increases legal or political risks in others. Thus, crypto does not make life easier but more difficult to use.

Why This Blocks True Mainstream Adoption

Chamath justified the reason this privacy gap continues to make him not a Bitcoin maximalist. Crypto cannot work as digital cash without privacy. Individuals will not embrace systems that expose their financial lives in the long-term. Businesses will hesitate. Uses will be restricted by institutions. Therefore, crypto usage ceases at speculation and settlement layers, but not at day-to-day payments.

This discussion brings out a fundamental conflict. Transparency enables trust. Privacy enables freedom. Crypto has laid emphasis on the former. But both are required by the mainstream society. Although such solutions as zero-knowledge proofs, mixers, and privacy layers are available, they are still disjointed. They are optional. They are complex. And regulators tend to discourage them. Unless privacy becomes a natural matter and instinctive, it is going to be resisted.

A CZ Conversation the Industry Can’t Ignore

Some of the replies made an effort to appear to disregard the discussion although the video itself states that they agree. CZ and Chamath were giving the same warning but at different angles. Price cycles will come and go. Regulations will evolve. Yet crypto is still not complete without a solution to privacy on the protocol level. This dialogue makes one harbor an awakening. The second stage of crypto can be not so speedy but more secure.