Concerns about quantum risk are putting pressure on Bitcoin prices: Executives

Reactions of Bitcoin developers to the threat of quantum computers putting pressure on prices and capital flows, according to industry leaders in the cryptocurrency space.

Adam Back, a renowned cryptographer and co-founder of Blockstream – a leading Bitcoin infrastructure company, shared on X social media on Thursday that Bitcoin’s “readiness to cope with quantum technology” is essential. However, he believes that this threat will not materialize for several decades, as quantum technology is still in its early stages and faces many research and development challenges.

He forecasts that there will be no significant risks within the next ten years, and even if some of Bitcoin’s encryption algorithms are broken, the core security nature of Bitcoin does not rely entirely on encryption. Therefore, this will not lead to the risk of Bitcoin being stolen on the network.

Quantum computers remain a hotly debated topic within the cryptocurrency community, as many experts worry that future supercomputers could break encryption, reveal private keys, and expose sensitive user data.

Investors worry about quantum risks

Nic Carter, partner at venture capital fund Castle Island Ventures, commented that the fact that many influential developers “firmly deny the quantum risk” is a negative signal for the market.

“There is a large gap between the perspectives of capital flows and developers on this issue. Capital is concerned and actively seeking solutions, while programmers almost completely deny it. Not acknowledging the quantum risk has and is putting pressure on Bitcoin’s price,” Carter emphasized.

Craig Warmke, an expert at the Bitcoin Policy Institute, agreed and added that the quantum threat is slowing down investment flows into Bitcoin, while encouraging large investors to diversify their portfolios.

“When non-technical people express concerns, they sometimes use imprecise terminology. However, it’s unfortunate that technical experts completely dismiss these concerns instead of focusing on addressing the issue of reducing holdings due to the impact of quantum risk,” he noted.

Building contingency plans is necessary

Besides the fact that quantum technology still has many years before becoming a real threat, some opinions suggest that large banks and traditional entities will be targeted first before Bitcoin is affected.

Carter affirmed that many businesses and even countries are heavily investing in developing quantum computers, while artificial intelligence also contributes to accelerating this process.

Meanwhile, Warmke believes that whether the quantum risk is real or not, convincing the public that this threat is almost nonexistent and developing contingency plans are essential.

“The only solution is to develop and unify contingency plans to increase confidence among Bitcoin holders,” he concluded.