The $470 billion dollar quantum threat hanging over Bitcoin

Started by CMPunk96, Aug 03, 2026, 04:31 PM

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Topic: The $470 billion dollar quantum threat hanging over Bitcoin   Views(Read 92 times)

CMPunk96

Theres a genuinely fascinating Forbes piece digging into the quantum threat to Bitcoin, and its one of the more level headed treatments of this topic Ive seen since it actually puts real numbers and real disagreement on the table instead of just doom or dismissal

Galaxy Digital estimated back in March that roughly 7 million Bitcoin, worth about 470 billion dollars, sit in addresses that have already exposed their public key on-chain, mostly old Satoshi-era addresses plus any address thats been reused after its first spend, though Galaxy itself called the risk real but far from an existential crisis right now

The technical goalposts keep moving in a worrying direction too, a Google researcher showed breaking RSA-2048 might take fewer than a million qubits, a twentyfold cut from his own 2019 estimate, and a more recent Google whitepaper put cracking Bitcoins elliptic curve cryptography at fewer than 500,000 qubits, with an Ethereum Foundation researcher estimating a 10 percent chance a quantum computer could pull a Bitcoin key from an exposed public key by 2032

Bitcoins own developers are genuinely split on what to do about this, one proposal called BIP-360 would just add a new quantum resistant address type, but a second proposal called BIP-361 is the one that makes people uncomfortable since it would retire legacy signatures in phases and make any coins that never migrated, including coins widely believed to be Satoshis own, permanently unspendable, with supporters framing it as better than letting a future quantum thief drain them and critics calling it outright confiscation

Into this mess steps a startup called American Fortress pitching quantum resistance across chains without requiring any address migration at all, paired with an auto freeze mechanism for vulnerable dormant wallets, though its worth being skeptical here since their technical paper hasnt been published or independently audited yet despite some fairly bold claims from its founder

The whole piece ends on a nice bit of perspective from a gold executive interviewed alongside all this, who points out that gold will probably still exist in five thousand years while Bitcoin may or may not be, which is a pretty blunt way to frame the actual stakes of this entire debate

Brad79

The freeze versus confiscation debate around BIP-361 is going to be one of the most contentious things in Bitcoin governance history if it actually gets serious traction, freezing coins that might be Satoshis own is symbolically massive

LogicWitch

Real keys are 256 bits and the toy example mentioned only broke a 15 bit key on actual quantum hardware, thats such a massive gap that anyone panicking about an imminent quantum attack is jumping way ahead of the actual state of the hardware

ScarletDaemon

470 billion dollars in exposed addresses sounds terrifying until you remember exposure isnt theft, it only becomes theft once a machine that doesnt currently exist actually gets built, which could be years or could be never
Opinions are my own. Obviously.

Ann

Bring your own locks as a philosophy makes sense to me, hardcoding one cryptographic standard into a blockchain forever was always going to be a long term liability regardless of quantum computing specifically
RTFM and then ask

Taker

The attackers understood this before security teams quote is the part that stuck with me most, its a pretty damning admission that the industry has been reactive rather than proactive on a threat thats been theoretically known for over a decade

BatchWizard

Freezing dormant Satoshi era coins protects the network from a future quantum thief dumping them on the market, but it also sets a precedent that governance can just declare certain coins unspendable, thats a huge deal for people who believe in Bitcoins immutability
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MJF

Ten percent chance of a quantum computer pulling a key by 2032 according to the Ethereum researcher is a real number worth taking seriously even if its not certain, ten percent odds on something this consequential still deserves serious contingency planning

DrewMcIntyre_OG

Every few years theres a new round of this exact same debate and Bitcoin is still here, not saying the threat isnt real but the alarmist framing in a lot of coverage rarely accounts for how much lead time the ecosystem actually has to adapt

DrewMcIntyre08

The gold executives quote at the end is doing a lot of work rhetorically but its also just true, an asset with essentially no counterparty risk and five thousand years of history is a different bet than a twenty year old digital currency

Rachel93

American Fortress claiming its like discovering cold fusion while not having published their technical paper is exactly the kind of claim that should make everyone wait for independent audit before getting excited

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