Charles Edwards, the creator of the quantitative Bitcoin and digital asset fund Capriole, cautions that Bitcoin could drop significantly below $50,000 if it fails to achieve quantum resistance by 2028.
The potential threat of quantum computing to the cryptocurrency sector has been a topic of extensive discussion, regarded as a forthcoming inflection point. More sophisticated computers could theoretically compromise encryption, exposing user keys, sensitive data, and funds to malicious actors.
While the deadline is generally seen as being years away, Edwards recently predicted it might arrive as early as 2028; without swift industry action, Bitcoin’s (BTC) value might plummet.
“I’m starting to think a significant bear market is necessary to eliminate those who consider the quantum threat to Bitcoin a joke and to motivate the maxis to upgrade the network,” he asserted.
“If we haven’t implemented a solution by 2028, I anticipate Bitcoin will be below $50K and will continue to decline until it’s resolved.”
Quantum patch deployment must occur by 2026
Critics contend that fears regarding quantum computers are exaggerated, as the technology is still decades away from practical application, meaning traditional financial institutions will be compromised long before Bitcoin.
Nonetheless, Edwards has consistently argued that the threat is more immediate, asserting Bitcoin will be “the first to face the quantum threat” since many banks and institutions are already advancing to post-quantum encryption, and fraudulent transactions can be reversed or blocked.
“We need to address this next year, or we’ll welcome the largest Bitcoin bear market ever. The FTX situation will seem minor in comparison,” Edwards remarked.
Bitcoin pioneer Willy Woo mentioned last month that one way to safeguard Bitcoin until a solution emerges for the quantum threat is to store it in a SegWit wallet for about seven years.
In contrast, Bitcoin advocate Michael Saylor downplayed the concerns surrounding quantum computing’s effect on Bitcoin, labeling it a marketing tactic to promote quantum-themed tokens.
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