Bitcoin’s cryptographic foundation could be at risk due to the advancement of quantum computing, experts warn, as the debate intensifies over how to secure the world’s most prominent cryptocurrency from future threats.
For years, Bitcoin has been hailed as a secure and decentralized store of value, often compared to gold for its perceived safety and scarcity. However, a new warning issued on January 17, 2026, by Chris Wood, global head of equity strategy at Jefferies, is raising alarms about a future vulnerability posed by Cryptographically Relevant Quantum Computers (CRQCs). These quantum machines could potentially break the cryptographic protections that Bitcoin relies on to ensure ownership and security.
Potential Quantum Threat to Bitcoin’s Core Security
Bitcoin’s security hinges on asymmetric cryptography, where public keys are used to receive funds, and only the corresponding private key allows access to those funds. This relationship is one-way: deriving the private key from the public key is computationally impossible with current classical computers. Even the most powerful supercomputers would require trillions of years to crack such codes. But CRQCs, if fully realized, could shatter this model, reducing the time to break the encryption from eons to just hours or days, drastically increasing the risk of theft.
Chris Wood, in his widely-read newsletter Greed and Fear, warns that this emerging quantum threat could make Bitcoin vulnerable to attacks that would undermine its value proposition as a secure, decentralized digital asset. “There’s ongoing debate about whether to ‘burn’ vulnerable coins or risk their theft by quantum-powered entities,” Wood explains, underscoring the existential nature of the problem. Such concerns are prompting both technical and philosophical debates within the Bitcoin community.
The most at-risk coins are those whose public keys have already been exposed—typically older coins that have been used in transactions. These coins could become prime targets for quantum-enabled hackers, raising the question of whether preemptive measures, such as “burning” these coins, should be considered. Some argue that taking such drastic steps would help protect Bitcoin’s reputation as a secure asset, while others contend that the risk is not immediate enough to justify such actions.
Implications for Bitcoin’s Future
Wood’s caution is not just theoretical. On the heels of his warning, he made a practical move by removing Bitcoin from his model portfolio and reallocating his assets into gold and gold-mining stocks. According to reports, this shift reflects a broader reassessment of long-term risks rather than short-term market volatility. Wood’s decision is a signal that Bitcoin’s role as “digital gold” could be threatened by the advent of CRQCs, which may eventually render current cryptographic techniques obsolete.
The potential for quantum computers to disrupt Bitcoin’s core security highlights an emerging paradox. Bitcoin’s scarcity—designed to be finite, with the final coin scheduled for mining in 2140—is often cited as a hedge against inflation. However, as Wood points out, this scarcity only holds value as long as the underlying security model remains intact. Should quantum technology breach these cryptographic defenses, Bitcoin’s perceived role as a safe haven for wealth could be severely undermined.
Importantly, Bitcoin is not alone in facing this threat. Many digital systems, including those used in online banking, government communications, and personal security, rely on similar cryptographic structures. However, Bitcoin’s unique nature—its decentralization and lack of a central authority—means there is no central entity to oversee security updates or mitigate risks, making the stakes even higher for the cryptocurrency.
While scalable CRQCs capable of breaking Bitcoin’s cryptography remain speculative, the rapid pace of quantum computing development signals that the cryptocurrency community may need to prepare sooner rather than later. As Wood’s warning makes clear, the time to debate and develop a solution is now—before the first quantum-powered theft takes place.
The core question facing Bitcoin’s community is not just technical, but philosophical: Can a system designed to be immutable and trustless adapt to a future where its foundational assumptions are upended? The answer to that question may determine whether Bitcoin can maintain its status as the world’s leading cryptocurrency, or if it will be forced to yield to the relentless march of quantum technology.
