It is no secret that Bitcoin is not actually anonymous, despite what many external observers of crypto may claim. It’s, in actuality, pseudonymous, as its trades are vulnerable to being tracked to certain people by intelligence and government agencies with sufficient conviction and knowhow. Nonetheless, in recent weeks, the privacy it provides consumers has been steadily rising, given that a range of coin-mixing providers and add-ons are providing an increasing number of users with all the anonymity which Bitcoin itself does not quite supply by itself. The dedicated privacy coins like Monero, Zcash and Dash would loose their position if the bitcoin continues to improve its privacy aspects. If Bitcoin provides anonymity in addition to a superior store of value, it may possibly make the prevalence of these altcoins to wane to the point at which they see less use, less community assistance and less expansion. To put it differently, it is possible that Bitcoin has turned into an existential threat to these privacy-enhancing coins.
But not only could this be a worst-case situation, but programmers on both Bitcoin and altcoin sides of this equation consider it’s highly improbable. On the one hand, numerous privacy coins provide technological benefits over Bitcoin, even if Bitcoin is profiting from blending solutions. But on the flip side, the cryptocurrency marketplace isn’t a zero-sum match, and there’s sufficient space for over one coin to keep popularity and a vast user base, particularly since Bitcoin — with improvements — still is not as confidential as particular competitions.