Quantum Fears Over Bitcoin Are Overblown, Says CoinShares

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While the rise of quantum computing has long been framed as a looming “doomsday” scenario for cryptocurrency, a new analysis from CoinShares suggests the threat may be significantly overstated.

Christopher Bendiksen, Bitcoin research lead at CoinShares, argues that the vast majority of the Bitcoin network remains insulated from quantum attacks, with only a tiny fraction of existing supply residing in vulnerable addresses.

In a recent post, CoinShares Bitcoin research lead Christopher Bendiksen downplayed concerns that quantum computers could soon compromise the integrity of the Bitcoin market.

According to Bendiksen’s analysis, only a small fraction of Bitcoin is held in wallets vulnerable to quantum computing attacks.

Quantum Vulnerabilities in Bitcoin Wallets

Bendiksen estimates that 10,230 out of 1.63 million BTC are stored in wallet addresses with publicly visible cryptographic keys that are susceptible to quantum computing attacks.

Distribution of coins that are vulnerable to quantum computing (Source: CoinShares)

The majority of the BTC (1.62 million) is held in wallets with holdings under 100 BTC, which Bendiksen claims would each take over a millennium to unlock, even in the most optimistic scenario.

Quantum Algorithms: A Theoretical Risk

Bendiksen emphasizes that the theoretical risks stem from quantum algorithms such as Shor’s and Grover’s, which could potentially break Bitcoin’s elliptic-curve signatures and weaken SHA-256.

However, he argues that neither algorithm can alter the network’s 21 million supply cap or bypass proof-of-work, two fundamental features of the Bitcoin network.

Quantum Fears Divide the Bitcoin Community

The issue has sparked debate among Bitcoin enthusiasts, with some, like Strategy executive chairman Michael Saylor and Blockstream CEO Adam Back, believing that quantum threats are overstated and will not disrupt the network for decades.

Bendiksen shares those views, stating that cracking Bitcoin’s cryptography would require millions of fault-tolerant qubits â€“ far beyond current technological capabilities.

On the other hand, some experts, such as Capriole Investments founder Charles Edwards, view quantum computing as a potential “existential threat” to Bitcoin.

It amazes me how good the human mind is at seeing what it wants to see.

My position on quantum has been the same from day 1:
– it's an existential threat.
– we must act to upgrade Bitcoin.
– we should act sooner rather than later to maximize trust and maximize the potential forâ€¦
— Charles Edwards (@caprioleio) February 8, 2026

Edwards suggests that an upgrade is needed now to strengthen network security, which could involve the adoption of post-quantum signatures.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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