Quantum Computing Era Puts 7 Million Bitcoins at Security Risk

An analysis suggests that as quantum computing technology advances, approximately 7 million Bitcoins could be exposed to hacking threats. Coinbase proposed separating technical development from discussions on handling vulnerable supply and urged exchanges, wallets, developers, and users to begin preparing for potential crisis situations.

While such quantum computers do not currently exist, the assessment points out the need to prepare for a transition to a new security framework that can withstand quantum computer attacks to protect cryptocurrency safety. The call is for readiness to transition to a quantum-resistant system before quantum computers evolve into realistic attack tools.

Around 7 million Bitcoins, including those from addresses with exposed public keys and addresses that have been reused, are at quantum risk. Specifically, about 1.7 million BTC are held in addresses using the legacy public key payment method, where the public key is directly displayed. This category also includes early mining rewards and coins lost or left unattended for extended periods. Debates are inevitable regarding how to handle supply that cannot be moved, such as wallets where private keys have been lost or dormant addresses.