Bitcoin Faces 'Existential Threat' From Quantum Computers?

A new proposal named BIP has been presented by Jameson Lopp — CTO of Casa — along with Bitcoin developers, urging the community to urgently respond to the threat posed by quantum computers.

Accordingly, nearly 25% of the supply #bitcoin (including 1 million BTC believed to belong to Satoshi Nakamoto) is stored in addresses that could be cracked if quantum technology becomes powerful enough. If this happens, the 'dormant' BTC could be stolen, dumped onto the market, causing severe volatility.

The proposal recommends discontinuing support for vulnerable addresses, forcing users to move their assets to a more secure 'post-quantum' address type. In the next 5 years, if not updated, these 'stubborn' BTC will be permanently frozen. The next phase could introduce additional recovery solutions $BTC for frozen assets according to the new security standards.

This move was announced at the Quantum Bitcoin Summit in San Francisco, a closed-door conference discussing the quantum risks to Bitcoin. Although it remains controversial, many experts believe the community needs to quickly reach a consensus to avoid a historic liquidity shock.

The crypto market is highly volatile, and investors need to clearly understand the risks before holding long-term.