Quantum Computers Threaten Bitcoin Security With 300,000 Times Faster Processing

Quantum technology, rooted in quantum mechanics, has the capability to process vast amounts of data and solve intricate problems in mere seconds, a task that would take classical computers decades to accomplish. This technology, which originated in the early 1900s, is applied in modern innovations such as transistors, lasers, MRI machines, and quantum computers. These quantum computers are said to be 300,000 times faster and more powerful than current computers. Google’s new quantum chip, Willow, exemplifies this advancement by significantly reducing computation times, potentially providing hackers with the tools to unlock the algorithms that support Bitcoin and other cryptocurrencies.

Quantum computers pose a significant threat to Bitcoin’s cryptographic systems, particularly the Elliptic Curve Digital Signature Algorithm (ECDSA). Experts like Adam Back and Michael Saylor argue that while quantum threats to Bitcoin are not an immediate concern, the development of advanced quantum hardware could take years, if not decades. Despite the rapid pace of research and development in quantum computing, Bitcoin is not yet quantum-safe. Developers are actively working to upgrade the network to mitigate potential quantum risks, including the threat of breaking encryption. While these risks are acknowledged, they are not yet actual threats.

Quantum computing could significantly impact Bitcoin by undermining the cryptography that secures its network. This technology can disrupt the network and potentially break Bitcoin wallets by exploiting vulnerabilities in the asymmetric cryptography that secures them. Specifically, the ECDSA, the asymmetric cryptography used in Bitcoin, is vulnerable to attacks by quantum computers. Bitcoin wallets are secured by ECDSA to generate a pair of private-public keys, relying on the hard-to-solve elliptic curve discrete logarithm problem (ECDLP), which is impossible to resolve with classical computers. The real issue is the potential for quantum computers to crack Bitcoin private keys, as private keys control access to Bitcoin. If private keys are lost, the associated Bitcoin is also lost. When a private-public key pair is generated, the public key is used for verification, and the private key is used for signing transactions.

In 1994, mathematician Peter Shor created the Shor quantum algorithm, which can break the perceived security of the algorithms in asymmetric cryptography. All existing algorithms would require a huge amount of time, money, and resources to derive a private key from the public key. However, the Shor algorithm will accelerate this process. This means that with a strong quantum computer, someone could use the Shor algorithm to generate a private key from a public one and fake digital signatures for transactions. Bitcoin and quantum security risk becomes more significant as quantum computers advance, especially for wallets linked to older addresses or those with reused public keys. Quantum computing could make it possible to reverse-engineer private keys from these exposed public keys, threatening the security of Bitcoin holders.

Analysts estimate that between 2.3 million and 3.7 million Bitcoin is permanently lost, which is about 11%-18% of the total fixed supply of 21 million. If quantum recovery technologies allow dormant wallets to come back to life, it could lead to significant market swings. Quantum computers might bring back lost Bitcoin by cracking the cryptographic keys that protect those wallets. These are usually wallets with lost or hard-to-reach private keys, making them easy targets. These are likely the oldest versions of Bitcoin addresses, using pay-to-public-key (P2PK) formats, which have never been upgraded or reused. As a result, these addresses remain vulnerable, with no one alive or available to update them. The advancement of quantum computing could potentially exploit these vulnerabilities, unlocking dormant wallets.

Recovering lost Bitcoin may raise some economic and ethical implications. Reintroducing those coins into circulation could disrupt Bitcoin’s scarcity attribute, and consequently, its market value could be impacted. There are already discussions on the best ways to preserve Bitcoin’s economic and ethical value. Many, like OG Bitcoin expert Jameson Lopp, believe those coins should be burned and destroyed forever to protect the network; others believe they should be redistributed for wealth balance.

Minimizing the public key exposure is essential if you want to protect your Bitcoin. Simple measures can help users find greater peace of mind. Measures to protect your Bitcoin should always be taken into consideration, regardless of the quantum threats. Fraud is a perennial threat in crypto. Phishing is still one of the most common scams in crypto, with the new zero-value scam revealed, where a phony address is added to the transaction history of a targeted wallet. When the owner starts a transaction, they may simply choose an address from their history and pick the fraudulent one, without even needing to access a private key. Approximately 25% of all Bitcoin is stored in addresses that use pay-to-public-key (P2PK) or reused pay-to-public-key-hash (P2PKH). These methods often reveal the public key linked to a user’s address. This is where the crypto vulnerabilities to quantum computing are more clear since the exposed public keys are more prone to quantum attacks through the Shor algorithm. You can do this by simply avoiding address reuse. Join a platform that helps your wallet change addresses automatically with each transaction. Reusing an address can expose your public key during a transaction. The best you can do is generate new addresses for each transaction and use wallets that support Taproot and SegWit. Don’t forget to pay special attention when you’re sending transactions to your wallet’s addresses. These wallets provide addresses with better security. Address poisoning is another type of common phishing technique that has cost users millions of dollars. It happens when bad actors send small transactions from wallet addresses similar to victims’ legitimate ones, thereby deceiving them by making them copy the wrong address when executing future transactions.

Bitcoin remains resilient against quantum threats for now, with ongoing research into quantum-resistant wallets and protocols like QRAMP to protect its future, while experts explore ways quantum technology could enhance the network. Bitcoin is decentralized and open-source. Its network adapts well, and ongoing research into quantum-resistant Bitcoin wallets suggests that coins face no immediate threat. Users should follow best practices, like not reusing addresses, to stay safe until quantum-proof cryptocurrencies and wallets are fully ready and available for use. Among the initial measures to protect Bitcoin from quantum threats, Bitcoin developer Agustin Cruz proposed a quantum-resistant asset mapping protocol (QRAMP) in early 2025. It is meant to protect Bitcoin from quantum risks while also allowing Bitcoin to work crosschain, extending to other blockchains without compromising custody or supply limits. Also, experts are developing powerful quantum-resistant cryptographic techniques, which could benefit Bitcoin in several ways. It may improve scalability, create unhackable wallets and strengthen cryptography. These changes will help the Bitcoin network stay strong and thrive in a new quantum world.

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