Bitcoin's Quantum Problem: 6.7M Coins at Risk of Permanent Freeze

A proposal by Bitcoin developers could potentially freeze over 6.7 million coins, worth around $425 billion at current prices, due to a quantum computer vulnerability.

The threat is considered credible by experts, with estimates suggesting that a quantum computer capable of breaking this class of encryption could arrive as early as 2027-2030.

The proposal, BIP-361, sets out three phases for migration to a new quantum-safe address type. Phase A would render old vulnerable addresses unable to receive funds, but coins would still be spendable from them.

Phase B would invalidate signatures from the old system, making it impossible to spend frozen coins unless holders can recover their funds using a cryptographic proof of ownership.