Quantum Computing Emerges as a Potential Threat to Bitcoin Security

TheNewsCryptoPublished on 2026-01-07Last updated on 2026-01-07

Abstract

Quantum computing poses a potential threat to Bitcoin's security, as highlighted in a report by Coinbase’s David Duong and referenced in BlackRock’s SEC filings. While Bitcoin is known for its strong cryptographic security, advances in quantum computing could undermine it. Cryptographically relevant quantum computers (CRQCs) may eventually break Bitcoin’s encryption, compromising wallet security and transaction integrity. Specific risks include attacks on SHA-256 (used in mining) and Elliptic Curve Digital Signature Algorithms (used in transaction signing). Both traditional finance and open blockchain protocols like Bitcoin and Ethereum are urged to upgrade cryptographic systems to counter this emerging threat.

Bitcoin is mostly known for its high degree of security, primarily because of its underlying blockchain technology. Although, experts warn that a new threat backed by quantum computing could lead to potential risks to cryptography via cryptographically relevant quantum computers (CRQCs).

The head of global investment research at Coinbase, David Duong, has so far alerted that progressions in quantum computing have increased concerns related to the long-term sustainability of Bitcoin. The official has also quoted a last concern related to BlackRock in its amended prospectus for the iShares Bitcoin Trust ETF (IBIT), filed with the SEC last May.

BlackRock also mentioned in the filings that the cryptographic infrastructure backing BTC could become faulty or non-effective because of the development of quantum computing technology. The investment fund mentioned that quantum computing is now in its early stages of development, and so it is difficult to estimate its ultimate impact on the wider blockchain infrastructure.

What Did The Report Highlight?

The report also highlighted that quantum computing applications could progress to the point where they show the capability to play with Bitcoin’s security by permitting malicious attackers to infiltrate its security and compromise wallets within the ecosystem.

As per Duong, quantum computing will require upgrades to a lot of cryptographic systems which are in use in the current scenario. He further mentioned that traditional finance may be one of the most affected sectors because of its overreliance on closed systems. Duong mentioned that open protocols such as BTC and ETH are also working hard and preparing themselves for the effect of quantum computing.

Duong also mentioned that cryptographically relevant quantum computers may have the ability to run Shor’s and Grover’s algorithms, which may further destabilise Bitcoin’s cryptographic infrastructure. He highlighted that the new technology amalgamates two types of risks into scope, which can mostly compromise Bitcoin’s SHA-256 for the proof-of-work mining processes and the Elliptic Curve Digital Signature Algorithms that back transaction signatures.

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Related Questions

QWhat is the primary security threat to Bitcoin mentioned in the article?

AThe primary security threat mentioned is the emergence of cryptographically relevant quantum computers (CRQCs), which could compromise Bitcoin's cryptographic infrastructure.

QWhich company's amended ETF prospectus expressed concern about quantum computing's impact on Bitcoin?

ABlackRock expressed this concern in its amended prospectus for the iShares Bitcoin Trust ETF (IBIT) filed with the SEC.

QWhat two specific algorithms could quantum computers potentially run to destabilize Bitcoin's security?

AQuantum computers could potentially run Shor’s algorithm and Grover’s algorithm, which could compromise Bitcoin's proof-of-work mining (SHA-256) and transaction signatures (Elliptic Curve Digital Signature Algorithm).

QAccording to David Duong, which sector might be one of the most affected by quantum computing due to its reliance on closed systems?

ADavid Duong stated that traditional finance may be one of the most affected sectors because of its overreliance on closed systems.

QWhat are the two main cryptographic components of Bitcoin that quantum computing could specifically target?

AQuantum computing could target Bitcoin's SHA-256 algorithm used for proof-of-work mining and the Elliptic Curve Digital Signature Algorithm (ECDSA) used for transaction signatures.

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