Bitcoin Community Recognizes Quantum Computing Risk: VanEck
Bitcoin Magazine Bitcoin Community Recognizes Quantum Computing Risk: VanEck Asset manager VanEck's Head of Digital Assets Research, Matthew Sigel, said the Bitcoin community was working on solutions...
Asset manager VanEck's Head of Digital Assets Research, Matthew Sigel, said the Bitcoin community was working on solutions.
Quantum computing is a risk to Bitcoin but the community recognizes the issue, according to asset manager VanEck’s Head of Digital Assets Research.
Speaking to CNBC on Friday, Matthew Sigel said that while progress on addressing the issue may be slow because of the crypto network’s decentralized nature, the community was working on it.
The crypto community has sounded the alarm about hypothetical advancements in quantum computers that could in the future be able to break Bitcoin’s cryptography.
Some in the space — including Bitcoin developers — have started preparing for a post-quantum future by testing quantum-resistant signatures on live sidechains.
“It’s a risk,” he said. “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system.”
He added: “The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years.”
Quantum computers do exist but make mistakes and a machine that can break Bitcoin’s cryptography currently does not exist. Bitcoin currently is the biggest computer network in existence.
Major companies in the space — including America’s biggest crypto exchange, Coinbase, and Bitcoin infrastructure firm, Blockstream — are already working on solutions.
Back in July, Coinbase said it plans to deliver a post-quantum signing pipeline using secure enclaves and threshold cryptography.
A Bitcoin Security Consortium — made up of BlackRock, Fidelity Digital Assets, Block, and others — formed in July and donates funds and dedicates engineers to open-source work supporting proposals like BIP-360, which aims to introduce a new transaction output type to reduce long-exposure quantum computing risks.
Asanat Analysis — Why it matters
Quantum computing poses a documented threat to Bitcoin's cryptographic security model. Current ECDSA (elliptic curve digital signature algorithm) assumes computational intractability; sufficiently advanced quantum computers could theoretically derive private keys from public keys, breaking the assumption that secures ~99% of all BTC. This isn't speculative—major cryptography bodies and quantum researchers have published detailed attack vectors. The fact that a mainstream asset manager is publicly acknowledging this signals the risk has moved from academic discussion to institutional awareness.
Bitcoin's response mechanisms already exist in protocol theory: migration to quantum-resistant cryptography (likely CRYSTALS-Kyber or similar post-quantum algorithms) is technically possible via soft or hard fork. However, execution poses coordination challenges—timeline uncertainty, consensus fragmentation risk, and the reality that any migration window creates vulnerability. VanEck's public stance matters because it validates the risk narrative without triggering panic, potentially accelerating both industry R&D and regulatory clarity on quantum-safe standards. This also differentiates BTC's long-term viability discussion from shorter-term price dynamics.
The timeline remains ambiguous. Cryptographically relevant quantum computers (CRQCs) aren't expected for 5-10+ years in most expert estimates, but nation-state development timelines are opaque. The real second-order effect: if Bitcoin meaningfully upgrades its cryptographic layer, it reinforces the network's resilience narrative and could reduce regulatory friction around 'obsolescence risk'—a concern some institutions quietly hold.