Quantum Threat Looms Over 30% of Bitcoin Supply

Fundstrat's Tom Lee has sounded the alarm about the potential threat of quantum computers to Bitcoin's security. According to Lee, advancements in quantum technology could render Bitcoin's existing protections obsolete by 2028 or 2029, compromising up to 7 million BTC.

Lee cited recent research from Google, which shows that quantum computers may be able to solve certain cryptographic problems exponentially faster than classical computers. This has significant implications for the security of Bitcoin wallets and transactions.

The main concern is with older wallet addresses where public keys have already been exposed on the blockchain. Analysts believe around 30% to 35% of the total supply, or approximately 7 million BTC, reside in such addresses that have either been reused or have remained dormant for years.

Lee suggested that networks like Ethereum and Solana may face lower risks from emerging quantum threats due to their stronger protection protocols. However, his statements drew attention from Adam Back, the creator of Hashcash, who challenged Lee's assessment by pointing out that Bitcoin protects coin ownership with ECDSA-based digital signatures.