Bitcoin News Today: Bitcoin Faces Quantum Threat as 25-30% in Legacy Addresses Risk Exposure

A former hacker turned cybersecurity CEO has raised alarms about Bitcoin’s vulnerability to future quantum computing and artificial intelligence advancements, warning that these technologies could one day break the encryption safeguarding the world’s most prominent cryptocurrency. David Carvalho, founder of Naoris Protocol and an advisor to NATO and Fortune 500 firms, emphasizes that Bitcoin’s cryptographic security, built on algorithms like ECDSA and SHA-256, may not be sustainable in the face of rapidly evolving quantum and AI capabilities [1].

Carvalho’s concerns are rooted in what is known as the “harvest now, decrypt later” strategy. He explains that cyber attackers are already collecting encrypted blockchain data, with the intent of decrypting it once quantum computing reaches a sufficient level of advancement. This method leverages the assumption that today’s robust encryption could become obsolete in a future dominated by quantum machines, potentially exposing transaction histories and private keys [2].

Bitcoin’s cryptographic architecture, while currently secure against classical computing threats, is at risk due to quantum algorithms like Shor’s algorithm, which can rapidly factor large numbers. When combined with AI, which enhances the efficiency of identifying cryptographic vulnerabilities, the threat becomes more imminent [3]. An estimated 25%–30% of all Bitcoin—around 6–7 million BTC—is already stored in legacy address formats, such as P2PK, which are more susceptible to quantum attacks [1].

Industry efforts are underway to address this looming risk. Proposals like BIP-360 seek to introduce quantum-resistant signature schemes, while decentralized solutions like Naoris Protocol and STARK-based zero-knowledge rollups aim to embed stronger cryptographic defenses directly into transaction layers [4]. However, the decentralized nature of Bitcoin presents a major challenge to large-scale implementation of these updates. Achieving consensus among miners, node operators, and users is essential but slow, and many existing coins will remain vulnerable until users migrate them to quantum-resistant addresses.

Not all experts share the same level of urgency. Some, like MicroStrategy’s Michael Saylor, argue that the quantum threat is exaggerated and that Bitcoin can be upgraded if and when needed. Nevertheless, the broader security community generally agrees that proactive measures are preferable to reactive ones. While the timeline for a quantum threat remains uncertain, many believe the transition to post-quantum cryptography should begin now to avoid a potential "silent collapse" of trust and system integrity [6].

Source: [1] Quantum Threat to Bitcoin: Silent Collapse and Post ... (https://cointelegraph.com/explained/why-a-hacker-turned-ceo-believes-quantum-tech-could-break-bitcoin)

[2] Bitcoin Faces Quantum Risk as Hacked Legacy Addresses ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-faces-quantum-risk-hacked-legacy-addresses-expose-25-30-holdings-2508/)

[3] Quantum Computing and AI Could Break Bitcoin, Warns ... (https://coinpedia.org/crypto-live-news/quantum-computing-and-ai-could-break-bitcoin-warns-naoris-protocol-ceo/)

[4] Silent Collapse and Post‑Quantum Defense (https://startupnews.fyi/2025/08/04/silent-collapse-and-post%E2%80%91quantum-defense/)

[5] Are Bitcoin and Ethereum Ready for Quantum Computing? (https://www.youtube.com/watch?v=rVA6BBJ8I3w)

[6] Crypto Short News – Latest Real-Time Updates (https://coinpedia.org/crypto-live-news/)