Quantum Alarm Sounded: Tom Lee Warns of Bitcoin Vulnerability

Tom Lee, co-founder of Fundstrat, has sounded an alarm about the potential impact of quantum computing on Bitcoin. According to Fundstrat's report, advances in modern computing could make the current protection system obsolete by 2028 or 2029 without a timely upgrade.

The security of funds on the network rests on digital signatures based on the ECDSA algorithm. However, technical documentation suggests that the theoretical vulnerability to Shor's algorithm concentrates on a specific segment of the ledger, with around 30-35% of Bitcoin's circulating supply held in older addresses with exposed public keys.

According to Adam Back, Hashcash pioneer and cypherpunk figure, the concept of 'decrypting' the chain is computer-scientifically inaccurate, as the Bitcoin network does not use encryption for standard transaction processing. Instead, it relies on digital signatures.