Quantum Threat Looms Over Bitcoin, Could Make Zcash or Ethereum Worth More

The Bitcoin network's cryptography can be theoretically cracked by a sufficiently powerful quantum computer. Such computers do not yet exist, but they may become available within the next five years if some companies succeed in developing them.

If one were used to crack Bitcoin's encryption, funds could be stolen directly from people's on-chain wallets that have already exposed their public keys. This would likely trigger a rapid capital flight, cratering the coin's price.

Over 34% of all Bitcoin is currently vulnerable according to the authors of Bitcoin Improvement Proposal (BIP) 361, which aims to fortify the network against quantum computers. However, even reaching a consensus on how to secure Bitcoin against quantum computing will not be trivial to resolve. The longer it goes on, the higher the risk of a quantum breach.

Zcash and Ethereum are likely to beat Bitcoin in becoming quantum secure within the next five years. Zcash has already discussed transitioning to new post-quantum cryptography that isn't vulnerable, and it also has a recent track record of responding quickly to security problems.