Bitcoin developers’ views on quantum computing risks are impacting its price and capital flow, according to industry executives.
Adam Back, a cypherpunk and co-founder of Bitcoin infrastructure company Blockstream argued in a series of X posts on Thursday that while it’s beneficial for Bitcoin (BTC) to be “quantum ready,” the threat is still decades away, as the technology is in its “ridiculously early” stages and faces research and development challenges.
He predicts there will be no risks in the next decade, asserting that even if some facets of Bitcoin’s encryption were compromised, it does not depend on encryption for its fundamental security model, meaning “it’s not going to result in Bitcoin being stolen on the network.”
The potential threat of quantum computing to the crypto sector remains a topic of discussion, as advanced computers capable of breaking encryption could potentially uncover user keys and sensitive data.
Investors concerned about quantum risk
Nic Carter, a partner at venture capital firm Castle Island Ventures, stated in response to Back, that it’s “extremely bearish” that many key developers “flatly deny there’s any quantum risk.”
“The discrepancy between capital and developers on this issue is massive. Capital is concerned and looking for a solution. Devs are mainly in complete denial. Inability to even acknowledge quantum risk is already weighing on the price.”
Craig Warmke, a fellow at the think tank the Bitcoin Policy Institute, agreed, noting that quantum risk is hindering capital inflow into Bitcoin and pushing larger holders to diversify.
“When non-technical people express concerns, they sometimes use technically incorrect language,” he remarked, expressing frustration at technical experts dismissing concerns instead of addressing the issue of “reduced holdings from perceived quantum risk.”
Contingency plans should be in place
While the technology poses no imminent threat, critics argue that traditional banking systems will likely be targeted and compromised before Bitcoin.
Related: Bitcoiners push for quantum-resistant BIP-360 upgrade as debate heats up
Carter emphasizes that both private companies and nations are investing heavily in quantum computing, with artificial intelligence contributing to the advancement.
On the other hand, Warmke stressed that the key path forward, regardless of the risk’s validity, is to reassure the public that the risk is negligible and to develop contingency plans should it become a reality.
“The only way forward is to develop and converge on contingency plans, just in case, so that people feel more comfortable holding Bitcoin,” he added.
Magazine: Big questions: Would Bitcoin survive a 10-year power outage?
