Bitcoin News Today: Zcash's Quantum-Resistant Edge Attracts Institutions as Bitcoin's Security Fades

VanEck CEO Jan van Eck has issued a stark warning that his firm will abandon Bitcoin investments if the cryptocurrency's encryption proves inadequate against emerging quantum computing threats. The comments, made during a recent CNBC interview, underscore growing institutional concerns about Bitcoin's long-term security and privacy vulnerabilities, with van Eck noting that "we will walk away from Bitcoin if we think the thesis is fundamentally broken" according to reports. VanEck, which manages over $1.2 billion in Bitcoin through its spot ETF, emphasized that quantum computing risks and transparency limitations are now central debates within the crypto community as research shows.

The CEO's remarks align with broader industry scrutiny of Bitcoin's cryptographic foundations. Quantum computers, once capable of sufficient scale, could theoretically break the elliptic curve cryptography securing Bitcoin transactions, exposing private keys and enabling theft. Ethereum co-founder Vitalik Buterin recently warned that quantum-capable machines using Shor's algorithm could materialize as early as 2028, while quantum computing researcher Scott Aaronson described the threat as a "live possibility" before the next U.S. presidential election. Zcash, a privacy-focused cryptocurrency, has emerged as a potential alternative for Bitcoin holders concerned about these risks. VanEck highlighted that "Bitcoin OGs" are increasingly studying Zcash, which uses zero-knowledge proofs to shield transaction details as reports indicate.

Zcash developers have proactively addressed quantum threats through a strategy called "quantum recoverability." This approach allows the network to pause and upgrade if quantum computers become powerful enough to break current encryption, ensuring users retain access to their funds during transitions according to research. Sean Bowe, a Zcash engineer, noted that while the network is not yet quantum-resistant, most protocol work for quantum recoverability is complete, with wallet software updates expected by 2026 as experts state. By contrast, Bitcoin's decentralized governance model could complicate rapid upgrades, raising questions about its ability to respond to quantum threats before they materialize.

Market dynamics reflect the growing urgency. Zcash (ZEC) has surged 1,486% over three months, reaching $565 as of November 24, 2025, driven by heightened interest in privacy and quantum resilience according to market analysis. Meanwhile, Bitcoin's price has declined over 30% from its October peak, with van Eck attributing the selloff to factors including quantum concerns and the approaching 2026 halving cycle as financial reports show. Deloitte research also highlights that 25% of Bitcoin's supply is already vulnerable to quantum attacks due to exposed public keys in older address formats as industry data indicates.

The debate underscores a broader tension between Bitcoin's transparent ledger and rising demands for privacy. VanEck argued that Bitcoin's public transaction visibility clashes with evolving user expectations, further amplifying interest in alternatives like Zcash according to reports. However, some experts, including Blockstream CEO Adam Back, argue quantum threats remain decades away, with post-quantum encryption standards already available for gradual implementation as analysts note.

As quantum computing advances, the crypto industry faces a critical juncture. While Zcash's proactive stance has attracted institutional attention, Bitcoin's ability to coordinate network-wide upgrades remains uncertain. VanEck's warning signals that major players are no longer viewing quantum risks as theoretical, but as a tangible threat requiring immediate preparedness.