Bitcoin Quantum-Computing Fears Curb Institutional Investment, Prompt Calls for Security Roadmap by 2028

Security threats posed by quantum computing are limiting broader institutional investment in Bitcoin, according to Cointelegraph.

Cointelegraph reported on October 27 that Muneeb Ali, co-founder of Stacks, said in a podcast interview that concerns about quantum computing are already acting as a constraint on Bitcoin’s growth.

Risk-averse institutional investors may delay large-scale purchases until Bitcoin developers present a concrete plan to strengthen defenses against quantum-computing attacks, Ali said.

He added that the risk could grow if there is no meaningful progress in adopting quantum-resistant security technology by 2028. Security upgrades to the Bitcoin network take years, and existing holders would need additional time to move assets to new addresses.

Ali cited guidance from the U.S. National Institute of Standards and Technology, or NIST, in pointing to 2030 as the target date for a transition to quantum-resistant security. He added that the timeline could move up to 2029 if advances in artificial intelligence accelerate quantum-computing development.

He also acknowledged the counterargument that the quantum-computing threat remains a distant problem. Still, disagreements among developers over the urgency of the threat, along with the absence of a clear response plan, could undermine institutional investor confidence, he said.

Separately, blockchain technology firm StarkWare said in September that it had reduced by 79% the computing cost required to prepare experimental quantum-resistant Bitcoin transactions. Still, the company said the results remain at the performance-testing stage and that a protocol-level security upgrade for Bitcoin will be needed over the long term.