While Bitcoin has proven resilient against traditional hacking attempts, experts warn that quantum computing poses a serious threat to the cryptocurrency’s security. Recent developments in quantum technology, particularly Google’s Willow chip with 105 qubits, have raised concerns about Bitcoin’s long-term vulnerability to quantum attacks. Modern symmetric cryptography methods like AES remain more resistant to quantum computing threats than other systems.
Tether’s CEO has highlighted a specific risk to inactive Bitcoin wallets, including those believed to belong to Bitcoin’s mysterious creator, Satoshi Nakamoto. An estimated 1.2 million Bitcoin in Satoshi’s wallets could be at risk once quantum computers become powerful enough to break current encryption methods. The emerging quantum technology threatens to make elliptic curve cryptography obsolete.
The primary concern centers on Bitcoin’s early transactions, which used a now-outdated Pay-to-Public-Key (P2PK) format. These transactions left public keys exposed, making them potentially vulnerable to quantum attacks. Additionally, over 3.5 million lost Bitcoins could become accessible if quantum computers manage to crack the network’s cryptographic security. Research shows that Lamport signatures could provide a viable quantum-resistant solution for protecting future transactions.
However, the threat isn’t immediate. Experts estimate that breaking Bitcoin’s current encryption would require around 317 million physical qubits to crack the system within an hour. Today’s most advanced quantum computers are still decades away from achieving this capability. Google’s latest quantum processor, while impressive, represents only a fraction of the computing power needed to pose a real threat.
The Bitcoin community isn’t standing idle. Developers are actively working on quantum-resistant solutions, including a soft fork proposal called “QuBit” that would introduce post-quantum public keys. The cryptocurrency industry is also accelerating research into post-quantum cryptography to protect against future threats.
The situation presents a race between quantum computing advancement and cryptocurrency security upgrades. While Shor’s Algorithm and Grover’s Algorithm theoretically threaten Bitcoin’s encryption, practical applications remain distant. The network can implement quantum-resistant algorithms through upgrades, maintaining Bitcoin’s 21 million supply cap regardless of quantum developments.
Global efforts to develop post-quantum cryptography continue as the industry prepares for a quantum future.
