ZeroCash: A Cryptocurrency’s Deep State Ties

By James F. Tracy

(Updated 12:25AM October 29)

October 28, 2016 marks the official launch of Zerocash (“Zcash,” “ZEC”), a new cryptocurrency that has received tremendous attention from the Bitcoin community. The technology is named for its zero-zcash-logoidentity function of shielding transactions on its blockchain, or digital ledger. “Zerocash is a new protocol that provides a privacy-preserving version of Bitcoin (or a similar currency),” its developers explain. “[I]n Zerocash, users may pay one another directly, via payment transactions that reveal neither the origin, destination, or amount of the payment.”

The enthusiasm surrounding the coin is demonstrated in the recent price for Zerocash futures contracts, representing one unit and valued against the price of one Bitcoin (BTC). Between September 15th and October 26th the price surged almost 1,300%—from a low of $18 (0.027 BTC) to a high of $261 (0.379 BTC).

Upon its October 28 debut the price of one Zcash briefly spiked above $1,000,000 (one million USD) on some exchanges, while eventually settling back to below $6,000 per coin.

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The high valuation and scarcity is at least partly influenced by the novel way Zcash is being introduced. The cryptocurrency will not be initially available to investors for over-the-counter purchases and can only be obtained in gradually increasing increments over a month-long period through “mining,” or digital production by those with the necessary computer equipment and technological expertise.

An additional reason for the building excitement around Zcash is that its development team consists of notable computer scientists at University of California at Berkeley, Johns Hopkins University, Tel Aviv University, and the Massachusetts Institute of Technology.

A lesser-acknowledged aspect of the Zerocash phenomenon, however, is how the currency’s development has been financially backed in part by some of the world’s most powerful corporate and government deep state actors, including Amazon, the US Defense Advanced Research Projects Agency, the Office of Naval Research, and the Israeli Ministry of Science and Technology. The entire list of funders is as follows:

*Amazon.com 

*Broadcom Foundation

*Tel Aviv University Authentication Initiative

*Center for Science of Information (CSoI), an NSF Science and Technology Center

*Check Point Institute for Information Security

*U.S. Defense Advanced Research Projects Agency (DARPA)

*Air Force Research Laboratory

*European Community’s Seventh Framework Programme

*Israeli Centers of Research Excellence I-CORE program

*Israeli Ministry of Science and Technology

*The Leona M. and Harry B. Helmsley Charitable Trust

*Office of Naval Research

*Simons Foundation

*Skolkovo Foundation 

Libertarians especially, with their philosophical antipathy toward state monopoly that central banking epitomizes have been among the most vigorous supporters of cryptocurrency development and use. This is accentuated by the fact that traditional markets for “hard money” investment such as precious metals are likewise subject to heavy manipulation by the same or allied central banking outlets.

Yet one would be hard-pressed to come up with a greater illustration of centralized state power than the array of interests listed above. Indeed, the involvement of such actors in developing the “next Bitcoin” should be recognized vis-a-vis the Western financial community’s continued advocacy for the drastic reduction of conventional central bank-issued currency from circulation (i.e. here, here, here, here and here).

In theory Zerocash differs from Bitcion in that it represents a bolstered technology for anonymous transactions veiled from third party scrutiny. According to the mechanics such transactions may be viewed and recorded by the specific parties who obtains proper authorization. What if a Trojan Horse capability could be engineered into the currency that might later be utilized by lettered agencies?

This is the greatest fear of those who rightly question the loss of tangible exchange. Further, such a development would defeat ZeroCash’s desirability and purpose. By dismissing the possibility of such a feature Zcash users implicitly rely on the integrity of the developers themselves, most of whom are junior faculty or graduate students whose research, as noted, is at least partly funded by such deep state actors.

Many Bitcoin enthusiasts regard cryptocurrencies as a sort of deus ex machina against the state. Along these lines, Zerocash’s institutional and scholarly veneer cloaks the more complex grant-generating interests lurking in the shadows.

Recently even strong advocates of Bitcoin have pondered if the financial medium may have been developed with direct or indirect participation of the intelligence community. In the case of Zcash there can be no doubt of such deep state interest and involvement, which is of no small concern as the world moves toward a seemingly inevitable “cashless society.”

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11 thoughts on “ZeroCash: A Cryptocurrency’s Deep State Ties”

  1. One step closer to a Mark and if it takes off it is either going to be controlled by the Mafia id not already being controlled by the In-Q-Tel group. Another case of they track us but can use it to fund terror without the mid level potential whistleblower finding the transaction in current financial forensics. I’d bet bitcoin to bullets, the purpose of crypto$ is to serve the elite and the World Trade Terror Organization.

  2. “Recently even strong advocates of Bitcoin have pondered if the financial medium may have been developed with direct or indirect participation of the intelligence community.”

    Say it ain’t so! 😉

  3. When we had gold for money your wealth was in your pocket,
    with a cashless society your wealth is on a cloud server,
    at the mercy of a government run by Organized Crime syndicates that will steal your wealth at the stroke of a key

  4. In the end our wealth is each other. There’s no record of the wealth I transferred to my neighbor when I helped him rebuild after a house fire. Couple days ago, over a cup of coffee on my front porch he said to my wife – ‘I owe this guy.’ Let’s see them steal that.

    1. Beautiful comment, thank you. Let’s get back yard aquaponics going everywhere and then our own magnetic motors. After that it’s local currency and peer to peer local internet. Community will end the slavery.

  5. If I may interject a comment not relevant to the current thread, Moon of Alabama, a military analyst, has stated today that the five greatest contributors to Hilllary Clinton are Jewish. They include rich businessmen Donald Sussman, J Pritzsker, Cheryl Priszker, George Soros, and P. Abraham.

    The reason that this is important is because they all support Israel, and the Israel Lobby greatly influences US Mideast policy to support apartheid Israeli imperialism. US war against Syria and Russia is threatening a nuclear war, and it should be pointed out that this is not to the interest of US imperialism. Of course it is not to the interests of the people of Israel and Palestine either, but that is a different question.

    Pointing this out and emphasizing it is in NO WAY anti-Semitiic. It opposes Zionism and Jewish nationalism, not the Jewish people. That is quite different from this blog in the past that attacked the Jewish people. The difference is between the powerful that rules a people and the people or population themselves.

    Western religion has been bigoted historically against Islam, orthodoxy, and Judaism, and this has influenced the less intelligent or more cynical toward cultural racism and bigotry. But Israeli policy is influencing the USA power toward increasing the threat of nuclear war, and should be sharply and consistently attacked.

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