# Thesis: Privacy DeFi will become relevant as regulation increases ***tldr;*** Given the number of people who want / need to use the internet in a private manner, having all the DeFi happening out in the open will become a problem if regulation increases. At this point, systems built from ground up with privacy will be valued a lot higher by the community ## Questions * How are we tracking this? * Market cap of privacy coins * Where will the value accrue? * At first glance it looks like the L1 / Store of value, the AMMs and DeFi building blocks * How big an opportunity is this (Billions)? * <s>0-1</s>, <s>1-10</s>, 10-100+ * Timeframe around this thesis? * <s>Days</s>, <s>Weeks</s>, <s>Months</s>, Years ## Risks * The larger players are incented *not* to go near it because of regulation, will need to be compelling for them to get across. ## Implications This could function as a bit of a hedge against regulation. It's not expected to perform *that* well unless regulation occurs, then it should provide some portfolio protection.