Quantum

Bitcoin

Security

<p>Quantum computing could threaten Bitcoin and other proof-of-work algorithms in the near future despite being in its "infancy," according to <a href="https://cointelegraph.com/news/quantum-still-infancy-pose-any-threat-to-bitcoin-near-term-vc?ref=btcpeers.com" rel="noopener noreferrer nofollow">Cointelegraph</a>. Amit Mehra, a partner at Borderless Capital, shared these concerns at Global Blockchain Congress Dubai 2025. The venture capital firm is researching quantum resistance technology to understand potential risks.</p>
<p>Mehra stated quantum computing will likely develop by the end of the decade. He warned people tend to underestimate technology's rapid evolution. Recent advances in chip technology and decentralized computing power make quantum computing a definite problem. He described the threat as potentially imminent or arriving in the very near future.</p>
<p>Quantum computing uses quantum physics principles to process information at speeds beyond current machines. The technology could eventually break encryption protecting cryptocurrencies and sensitive data. This pushes developers to create post-quantum security standards. Charles Edwards, founder of Carpriole, called the situation urgent and stated Bitcoin must solve quantum threats within the next year or gold will permanently outperform it.</p>
<h3 id="bitcoin-holdings-face-security-risks">Bitcoin Holdings Face Security Risks</h3>
<p>The financial exposure is substantial for Bitcoin holders worldwide. <a href="https://bitcoinmagazine.com/technical/what-happens-to-bitcoin-when-quantum-computers-arrive?ref=btcpeers.com" rel="noopener noreferrer nofollow">Bitcoin Magazine</a> reported in June 2025 that approximately 6.51 million bitcoin worth over $700 billion remains quantum vulnerable. This represents 32.7% of current supply. Vulnerable holdings include funds in addresses that reused addresses, legacy script types, and addresses exposed through Bitcoin forks.</p>
<p>Bitcoin uses Elliptic Curve Digital Signature Algorithm to secure transactions. A sufficiently powerful quantum computer could derive private keys from public keys. This would enable theft of funds from vulnerable addresses. Chaincode Labs outlined a dual-track migration strategy requiring approximately seven years for full implementation. The timeline draws on past protocol upgrades like SegWit and Taproot.</p>
<p>We reported in February 2025 that <a href="https://btcpeers.com/15-us-states-move-forward-with-plans-for-bitcoin-reserves/" rel="noopener noreferrer nofollow">fifteen US states began pursuing government Bitcoin reserves</a> following federal policy shifts. The movement gained momentum after proposals to establish strategic cryptocurrency stockpiles. These institutional adoption efforts could face complications if quantum threats materialize before adequate security measures deploy.</p>
<h3 id="blockchain-industry-prepares-defense-measures">Blockchain Industry Prepares Defense Measures</h3>
<p>Some blockchain networks have already deployed quantum-resistant solutions. SUI Research unveiled a cryptographic framework in July 2025 that protects blockchains from quantum threats without hard forks or address resets. The solution works for SUI, Near, Solana, Cosmos and other networks. However, it does not address the problem for Bitcoin or Ethereum.</p>
<p>The US government is considering quantum computing investments for national security purposes. <a href="https://www.coindesk.com/markets/2025/07/18/bitcoin-traders-are-discussing-btcs-record-high-but-quantum-computing-is-threatening-the-math-behind-it?ref=btcpeers.com" rel="noopener noreferrer nofollow">CoinDesk</a> reported in July 2025 that Capgemini found 70% of large organizations are preparing for post-quantum cryptography. Only 2% of cybersecurity budgets are allocated to this transition. The US National Security Agency plans to deprecate RSA and ECC encryption by 2035.</p>
<p>Bitcoin developer Agustin Cruz proposed a Quantum-Resistant Address Migration Protocol in early 2025. Other proposals include freezing Satoshi's coins and other legacy addresses to protect the network. These proposals sparked debates about whether such actions undermine Bitcoin's decentralization principles. The National Institute of Standards and Technology has finalized several post-quantum algorithms like Kyber and Dilithium for public use. Major technology companies including Cloudflare, Apple and AWS have begun integrating them into their systems.</p>

Bitcoin Faces Growing Quantum Computing Risk Within Decade Says Borderless Capital

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