Fears around quantum computing breaking Bitcoin (CRYPTO: BTC) are overstated as the practical threat is distant, limited in scope, and manageable through gradual protocol upgrades, according to a new research report by CoinShares.
Quantum Risk Is Long-Dated And Narrow
Only about 10,200 BTC, held in a small number of large legacy Pay-to-Public-Key (P2PK) addresses, could pose a meaningful market risk if compromised, CoinShares noted in its report.
That figure far below claims that 2%–50% of Bitcoin’s supply is vulnerable.
While roughly 1.6 million BTC remain in legacy address formats, coordinated attacks are highly impractical even under optimistic assumptions about quantum progress.
Breaking Bitcoin’s cryptography would require quantum computers with millions of qubits, roughly 100,000 times more powerful than today’s machines, pushing any realistic threat at least a decade into the future, the report pointed out.
Rushed Fixes Could Do More Harm Than Good
CoinShares warned against aggressive responses such as burning “vulnerable” coins or rushing quantum-resistant upgrades, saying such moves could undermine property rights and weaken decentralization.
Because it is impossible to determine whether dormant coins are lost or simply inactive, coercive measures would conflict with Bitcoin’s core principles.
Instead, CoinShares supports a measured approach that mirrors Bitcoin’s historical evolution.
The firm advocates monitoring quantum advances, allowing voluntary coin migration, and introducing post-quantum signatures through soft forks once the technology is mature and clearly necessary.
For institutional investors, CoinShares said the conclusion is straightforward: quantum risk is contained, long dated, and solvable.
It should not be mistaken for an existential or near-term threat to Bitcoin’s role as digital sound money.
Image: Shutterstock
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