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What is quantum technology?
Quantum technology is capable of managing vast quantities of data and addressing intricate issues in mere seconds instead of decades.
Interestingly, quantum technology emerged in the early 20th century. It stemmed from quantum mechanics, a discipline of physics that studies how matter and energy function at extremely minute scales, such as atoms and subatomic particles.
In practical applications, it is utilized in contemporary technologies such as transistors, lasers, MRI devices, and quantum computers. These are reportedly 300,000 times quicker and more powerful than their current counterparts. Google’s latest quantum chip, Willow, dramatically reduces computation times and could provide hackers with the capabilities to decipher the algorithms that underpin Bitcoin and other cryptocurrencies.
Quantum computers could pose a risk to Bitcoin’s cryptographic frameworks, including the Elliptic Curve Digital Signature Algorithm (ECDSA). Experts such as Adam Back and Michael Saylor contend that quantum threats to Bitcoin are not an immediate concern, as such applications necessitate sophisticated quantum hardware, which may take years, if not decades, to realize.
The research and development of quantum computers are progressing rapidly, but is Bitcoin quantum-safe at this moment? Not as of now, but developers are striving to enhance the network to reduce potential quantum risks, including breaking encryption.
While acknowledging the dangers is essential, it is equally crucial to specify that these are far from being genuine threats at present.
Did you know? Albert Einstein significantly impacted the evolution of quantum technology. His research on the photoelectric effect laid the groundwork for quantum mechanics, illuminating the composition of light. He received the Nobel Prize for this, not for the theory of relativity, as many presume.
How quantum tech could dismantle Bitcoin wallets
Quantum computing could profoundly influence Bitcoin. This is primarily due to its potential to compromise the cryptography that safeguards its network.
Quantum computing and Bitcoin (BTC) have sparked considerable discussion for a while, and rightly so. It can disrupt the network and potentially endanger Bitcoin wallets by exploiting weaknesses in the asymmetric cryptography that secures them. Specifically, the ECDSA, the asymmetric cryptographic method used in Bitcoin, is susceptible to assaults by quantum computers.
Bitcoin wallets are secured by ECDSA to generate a pair of private-public keys. Its security relies on the complex elliptic curve discrete logarithm problem (ECDLP), which classical computers cannot resolve.
Cracking Bitcoin private keys with quantum computers is indeed a pressing concern since private keys govern your Bitcoin. Losing them means losing your funds. When a pair of private-public keys is generated, the public key is designated for verification, while the private key is for signing.
In 1994, mathematician Peter Shor devised the Shor quantum algorithm, capable of dismantling the perceived security of algorithms within asymmetric cryptography. All existing algorithms would demand considerable time, money, and resources to derive a private key from a public key. However, the Shor algorithm expedites this process significantly.
Consequently, when an individual, organization, or anyone equipped with a robust quantum computer applies the Shor algorithm, they may generate a private key from a public one and forge digital signatures for transactions.
Bitcoin and quantum security risk
By now, you’ve learned that quantum tech could endanger Bitcoin wallets by exposing their private keys. This risk becomes more pronounced as quantum computers improve, especially for wallets attached to older addresses or those utilizing reused public keys. Quantum computing might enable the reverse-engineering of private keys from these revealed public keys, jeopardizing the security of Bitcoin holders.
In 2025, quantum computers are supposedly decades away from breaching ECDSA. Even Michael Saylor downplays the threats. Bitcoin users can rest easy for now, but they should remain informed about the best practices to safeguard against any future quantum challenges to Bitcoin.
Here’s a succinct summary of the connection between quantum computing and Bitcoin:
Did you know? Progress in quantum computing can be evaluated by the quantity of qubits (fundamental units of information) contained within one processor. Currently, the most advanced quantum computers process between 100 and 1,000 qubits. Estimates for the qubits required to breach Bitcoin’s security range from 13 million to 300 million or beyond.
Can quantum computers retrieve lost Bitcoin?
Analysts estimate that between 2.3 million and 3.7 million Bitcoin are permanently lost. This constitutes roughly 11%-18% of the total fixed supply of 21 million.
What occurs to lost Bitcoin when quantum recovery technologies enable dormant wallets to reactivate? Consider Satoshi Nakamoto’s coins, estimated at 1 million. If a quantum computer decrypts their wallet and releases the coins into the market, it could lead to significant market volatility.
Quantum computers may potentially restore that lost Bitcoin by deciphering the cryptographic keys that protect those wallets. These are generally wallets with inaccessible or lost private keys, rendering them easy targets.
These are likely the oldest types of Bitcoin addresses, utilizing pay-to-public-key (P2PK) formats, which have neither been upgraded nor reused. Consequently, these addresses remain at risk, with no individuals alive or available to make adjustments. The advancements in quantum computing could exploit these flaws, unlocking dormant wallets.
In May 2025, global asset management firm and technology provider BlackRock issued a cautionary note regarding its iShares Bitcoin Trust (IBIT) filing
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, declaring that quantum computing presents a considerable threat to Bitcoin’s enduring security due to its capacity to undermine existing cryptographic protections.
Ethical and financial considerations
Retrieving lost Bitcoin could invoke various economic and ethical concerns. Reintroducing those coins into the market might disrupt Bitcoin’s rarity characteristic, and as a result, its market valuation could be influenced.
Discussions are already underway regarding optimal methods to maintain Bitcoin’s economic and ethical integrity. Numerous individuals, such as veteran Bitcoin analyst Jameson Lopp, contend that those coins ought to be incinerated and obliterated permanently to safeguard the network; others argue they should be redistributed to achieve wealth equity.
What actions can you take to secure your Bitcoin?
Minimizing exposure of the public key is crucial for anyone aiming to safeguard their Bitcoin. Simple strategies can assist users in achieving greater confidence.
Protective measures for your Bitcoin should consistently be kept in mind, regardless of quantum hazards. Deception remains a constant danger in the crypto realm. Phishing continues to be one of the most prevalent scams in crypto, with the recent zero-value scam unveiled, wherein a fraudulent address is appended to the transaction history of a targeted wallet.
When an owner initiates a transaction, they might unwittingly select an address from their history and choose the deceitful one, even without needing a private key.
About 25% of all Bitcoin is kept in addresses that utilize pay-to-public-key (P2PK) or reused pay-to-public-key-hash (P2PKH). These methodologies frequently disclose the public key associated with a user’s address. This highlights the crypto vulnerabilities to quantum computing since the exposed public keys are more susceptible to quantum assaults via the Shor algorithm.
You can avoid this by refraining from address reuse. Join a platform that facilitates automatic address changes for your wallet with every transaction. Reusing an address can reveal your public key during a transaction.
The optimal approach is to generate new addresses for each transaction and utilize wallets that incorporate Taproot and SegWit. Make sure to exercise extra caution when sending transactions to your wallet’s addresses. These wallets offer addresses with enhanced security.
Address poisoning is yet another prevalent phishing tactic that has resulted in significant financial losses for users. It occurs when malicious actors send minor transactions from wallet addresses resembling the legitimate ones of victims, thus misleading them into copying the incorrect address in future transactions.
Bitcoin’s resilience against quantum threats: Ongoing research and safety measures
Currently, Bitcoin shows robustness against quantum threats, with continuous research into quantum-resistant wallets and protocols like QRAMP to secure its future, while experts investigate how quantum technology might enhance the network.
Bitcoin is decentralized and open-source. Its network adapts effectively, and ongoing research into quantum-resistant Bitcoin wallets indicates that coins currently face no imminent peril.
Users ought to adhere to best practices, such as avoiding address reuse, to maintain safety until quantum-proof cryptocurrencies and wallets are prepared and available for deployment.
As one of the initial strategies to safeguard Bitcoin from quantum risks, Bitcoin developer Agustin Cruz proposed a quantum-resistant asset mapping protocol (QRAMP) in early 2025. This is designed to shield Bitcoin from quantum threats while also allowing for crosschain functionality, extending to other blockchains without compromising custody or supply caps.
Additionally, experts are creating robust quantum-resistant cryptographic techniques that could benefit Bitcoin in multiple ways. It may enhance scalability, develop unhackable wallets, and fortify cryptography. These modifications will help the Bitcoin network remain resilient and flourish in a new quantum landscape.