Bitcoin May Struggle to Counter Quantum Computing Threat, Cardano Emerges as Alternative

Bitcoin may have to surrender its position as the largest cryptocurrency by market value as quantum computing advances, according to a warning cited by The Block. The concern is that Bitcoin's rigid structure makes it hard to respond quickly to a severe technological threat because changing the protocol is so difficult.

The Block reported on July 24 that Cardano founder Charles Hoskinson said in a recent interview that Bitcoin could face a crisis as quantum computing develops.

Hoskinson identified Bitcoin's governance model as a central weakness, saying the system is difficult to change. Bitcoin, with a market value of $1.3 trillion, is stuck in the past and may struggle to adopt new defensive technologies, he said.

Because Bitcoin is decentralized, winning agreement among stakeholders and upgrading the core network is a highly difficult process. Hoskinson said Bitcoin's strength came from surviving external threats, including the absence of its founder, but argued that quantum computing poses an entirely different kind of risk. Without technological progress because of governance constraints, he said, Bitcoin will struggle to keep the top spot.

He cast Cardano, a proof-of-stake blockchain, as an alternative. Cardano, with a market value of about $6 billion, has formal on-chain governance that would allow it to respond quickly to technological threats. Hoskinson described Cardano as Bitcoin's spiritual successor, saying it fixes parts Satoshi Nakamoto did not implement because of limits on time and expertise.

If migration is needed to address the quantum threat, it could be carried out quickly through on-chain features after a vote, he said. Cardano is also preparing a major upgrade that would increase network speed 60-fold from current levels, he added.