It's no secret that Bitcoin isn't actually anonymous, despite what various outside observers of crypto might claim. It is, in fact, pseudonymous, as its transactions are vulnerable to being traced to specific individuals by governments and intelligence agencies with enough determination and knowhow. However, in recent months, the privacy it offers users has been steadily increasing, given that a number of coin-mixing services and add-ons are successfully providing more and more users with the anonymity that Bitcoin itself doesn't quite furnish on its own.
But with Bitcoin's improving privacy, the possibility emerges that it could end up weakening the position of dedicated privacy coins, such as Monero, Zcash and Dash. If Bitcoin offers anonymity and also a superior store of value, it could potentially cause the popularity of such altcoins to wane to the point where they see less usage, less community support and less growth. In other words, it's possible that Bitcoin is becoming an existential threat to such privacy-enhancing coins.
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