The response from Bitcoin developers on the risk of quantum computing to the cryptocurrency is weighing down its price and affecting capital flow, crypto industry executives have argued.
Adam Back, a cypherpunk the and co-founder of Bitcoin infrastructure company Blockstream argued in a series of X posts on Thursday that it is good for Bitcoin (BTC) to be “quantum ready,” but it won’t be a threat for the next few decades, as the technology is still “ridiculously early,” and has research and development issues.
He predicts there will be no risks in the next ten years and even if some parts of Bitcoin’s encryption were broken, it does not rely on encryption for its core security model and “it’s not going to result in Bitcoin being stolen on the network.”
Quantum computing continues to be debated as a potential threat to the crypto industry, as more advanced computers that could break encryption have been theorized as having the capability to reveal user keys and expose sensitive data.
Investors concerned about quantum risk
Nic Carter, a partner at venture capital firm Castle Island Ventures, said in response to Back, that it’s “extremely bearish” that many influential developers “flatly deny that there’s any quantum risk.”
“The discrepancy between capital and developers on this issue is massive. Capital is concerned and looking for a solution. Devs are mainly in complete denial. Inability to even acknowledge quantum risk is already weighing on the price.”
Craig Warmke, a fellow at the think tank, the Bitcoin Policy Institute, agreed, adding that quantum risk is slowing the flow of capital into Bitcoin and pushing larger holders to diversify.
“When non-technical people express concerns, they sometimes use technically incorrect language,” he said, adding it was “frustrating to see technical people dismiss concerns” rather than address the topic of “reduced holdings from perceived quantum risk.”
Contingency plans should be in place
Along with the technology being years away from being a threat, critics also argue that banking giants and other traditional targets will be cracked long before Bitcoin.
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Carter maintains that companies and even countries are raising significant funds to build quantum computers, and artificial intelligence is helping accelerate the development.
Meanwhile, Warmke said the best way forward, whether or not the risk is real, is to convince people the risk is near zero and help provide contingency plans in case it’s not.
“The only way forward is to develop and converge on contingency plans, just in case, so that people feel more comfortable holding Bitcoin,” he added.
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