In the ever-evolving world of cryptocurrencies, privacy coins like Zcash (ZEC) and Monero (XMR) often spark intense discussions. A recent tweet from Satoshi Van Saberhagen (@saberhagen_xmr), a self-described hermeticist, cryptoanarchist, and anonymity maximalist, cuts right to the heart of the matter: principles should always come before profits. Let's break down his insights, explain the key concepts, and see what this means for anyone navigating the privacy coin space.

The Zcash Pump: More Than Just Hype?

Saberhagen starts with a bold statement: "Principles over gains." He's addressing the frustration some feel about Zcash's recent price surge. If you're new to this, Zcash is a cryptocurrency that offers optional privacy through shielded transactions, while Monero enforces privacy by default for all transactions. The "pump" refers to a rapid increase in ZEC's value, driven by endorsements from big names like Naval Ravikant, Balaji Srinivasan, the Solana founder, and others from Hyperliquid.

According to Saberhagen, this isn't a fleeting pump-and-dump scheme—where prices are artificially inflated then crashed for quick profits. Instead, it's a coordinated effort to position ZEC as the go-to tool for tax evasion among crypto elites. With their massive capital and networks, betting against them short-term might be unwise. He even shares his own experience: he bought into ZEC after a marketing push in June by Arjun (likely referring to Arjun Sethi or a similar figure in the space) and his team in Dubai, then dollar-cost averaged (DCA'd) out at around $240 per coin as it surged beyond expectations.

DCA, for the uninitiated, is a strategy where you invest a fixed amount regularly, regardless of price, to average out your entry cost over time. Saberhagen respects the momentum Arjun built but vows not to touch ZEC again due to what he sees as arrogance from its community during the euphoria.

Ideological Divide: Monero vs. Zcash

Here's where it gets juicy. Saberhagen argues that Monero and Zcash aren't allies in the privacy fight—they're rivals. He points out that even leading Zcash devs like Sean Bowe take jabs at Monero instead of celebrating shared progress. Coins like Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Firo (FIRO), Zano (ZANO), Beam (BEAM), Nano (XNO), and Kaspa (KAS) can coexist with Monero, but ZEC? It's the "chain of Monero's enemies."

Why the bad blood? Zcash's design includes transparent addresses (t-addresses) for compliance, making it more palatable to regulators. It offers KYC (Know Your Customer) options for everyday users while providing anonymity for elites. Saberhagen criticizes Zcash's White House meetings and alleged ties to intelligence agencies, seeing it as a compromise of core cypherpunk values—those anti-authority, privacy-first principles born from the early crypto movement.

In contrast, Monero is all-in on uncompromising anonymity, making it harder for authorities to track but also more targeted for suppression. Saberhagen warns that Zcash's fate is tied to regulatory acceptance, predicting a boom until around 2027, followed by a "regulatory blow" that could sink it. Monero, he believes, will thrive long-term because it embodies resistance.

Investment vs. Ideology: A Tough Choice

From a pure financial angle, Saberhagen suggests DCA'ing into ZEC now and holding until that first big regulatory hit. But he emphasizes distinguishing between ideology and investment. He opts out because Zcash's culture opposes his values: no bending to authorities, pure resistance inspired by "the streets and ancient spiritual texts."

He notes the hype around tax evasion narratives, with even the Solana founder encouraging it. Privacy protocols are booming—except Monero, which he calls the "oppressed coin," shunned by feds and the crypto industry alike. Yet, Saberhagen predicts ZEC will leverage its regulatory-friendliness short-term, but the "pragmatic middle ground" will crumble, leaving true resistance like Monero to prevail.

Community Reactions and Deeper Critiques

The tweet sparked replies that add layers to the discussion. One user, @sagewilyam, simply states, "Zcash is for everyone," pushing back on the elitism critique. Another, @TheRealClippy_, references a new paper on Tachyon (a proposed scaling solution for Zcash), arguing it's overhyped and doesn't truly solve throughput issues, relying on outsourced computation.

This snippet highlights potential centralization risks in Zcash's data availability layer, where reliance on major providers could create single points of failure, rendering user funds unspendable if services shut down.

The diagram illustrates how pruning old epochs could make notes unspendable, leading to catastrophic failures if history isn't preserved decentralized.

Saberhagen agrees with this take, noting another user (@spirobel) was right about the hype. Other replies include conspiracy theories about Zcash backdoors and predictions of steep drops in bear markets.

@EthosVentures calls it "1000 words to say you’re sidelined," urging people to hold both ZEC and XMR. Saberhagen counters that he caught a 6x gain and highlights Monero's community efforts, like invitations to Zcash at Monerotopia and Cake Wallet's planned ZEC integration despite hostility.

@munzevi_xmr speculates the USB destruction ceremony (a Zcash event symbolizing the elimination of trusted setup keys) was fake, positioning ZEC as a honeypot. Saberhagen responds with concerns over potential inflation bugs and trusted setups in Zcash's Sapling pool.

What This Means for Privacy Coin Enthusiasts

This thread underscores a core tension in crypto: balancing innovation with ideals. For meme token fans and blockchain practitioners, privacy coins like Monero could inspire anonymous meme launches or shielded transactions in volatile markets. But Saberhagen's message is clear—don't let gains blind you to principles. As regulatory pressures mount, coins that prioritize sovereignty over compliance might outlast the rest.

Whether you're in it for the tech, the ideology, or the profits, threads like this remind us: crypto isn't just about money; it's about reshaping power dynamics. Keep an eye on ZEC's momentum, but remember, true privacy warriors bet on resistance.