Quantum computers vs. Bitcoin: Why a top analyst is sounding the alarm now

• Jefferies analyst Christopher Wood cuts entire Bitcoin allocation from his model portfolio
• Experts warn that a significant portion of Bitcoin holdings could be affected by quantum threats
• The industry is reacting worldwide to the possible dangers of quantum computing

Christopher Wood, global head of equity strategy at investment bank Jefferies, has made a high-profile adjustment to his model portfolio.

Wood responds to quantum risks: Bitcoin out, gold in

According to The Block, Christopher Wood has eliminated the entire Bitcoin portion of his “GREED & fear” model portfolio. The previous 10 percent stake was reallocated equally into physical gold and gold mining stocks, according to a statement shared with The Block. Wood justified the move with the increasing theoretical threat posed by quantum computers to the security of Bitcoin, it said.

Quantum computing opens up new opportunities to process problems more efficiently and carry out calculations much faster than conventional supercomputers – but it could also endanger the security of the cryptocurrency. According to The Block’s report, which is based on Wood’s “GREED & fear” newsletter, the Jefferies analyst estimates that the quantum issue is unlikely to impact the Bitcoin price in the short term. Nevertheless, the concept of Bitcoin as a store of value in a long-term pension portfolio seems less solid.

Quantum computing threatens Bitcoin stability

Wood recognized the potential of Bitcoin early on: During the pandemic, he included the cryptocurrency in his model portfolio as a digital alternative to gold, the report continues. The basis of his decision was the fixed supply limit of Bitcoin – the last coin is not expected to be mined until 2140 – which should give the asset long-term stability. But this assumption is now increasingly being questioned: Wood refers to a study by Chaincode Labs from May 2025, which was carried out by researchers Anthony Milton and Clara Shikhelman. According to the study, between 4 and 10 million Bitcoin – up to 50 percent of the circulating supply – could be at risk from quantum computers. Wallets from crypto exchanges and institutions are particularly vulnerable, as addresses are often used multiple times.

Quantum computing threat: faster than expected?

The debate about quantum computing in the crypto world is gaining momentum: Due to the development of Microsoft’s “Majorana 1” quantum chip, the so-called “Q-Day” – the day on which quantum computers are able to crack current encryption – could possibly arrive earlier than originally expected. According to the company, the “Majorana 1” represents a technological breakthrough in quantum computing technology by combining up to a million qubits with a topological core on a single chip.

David Duong, head of investment research at Coinbase Global, also warned in a LinkedIn post on January 6, 2026 that the threat to Bitcoin could become a reality more quickly than previously thought.

Duong said quantum computers could put Bitcoin at risk by cracking private keys or making mining more efficient. In addition, he warned that from block 900,000 up to a third of the Bitcoin holdings could be particularly vulnerable to attacks. Bitcoin holdings in reused addresses are particularly affected. Despite the current low probability of a successful attack, this danger makes the introduction of quantum-safe signatures necessary, according to Duong. His post also shows that BlackRock also pointed out the potential risks of quantum computing in a revised information document for its iShares Bitcoin Trust ETF. At the same time, US and EU authorities are preparing critical infrastructure to switch to quantum-resistant encryption by 2035, Duong continued.

The developments show that quantum computing is increasingly becoming the focus of the crypto world and raises questions about the security of digital assets – a topic that is increasingly concerning investors and developers.

Editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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