The Quantum Threat To Bitcoin Is Worse Than Mere Wallet Hacks, Coinbase Analyst Says

Coinbase analyst David Duong warns quantum computing could threaten Bitcoin wallets, mining, and network security long-term.

Bitcoin investors have always worried that a future supercomputer might one day guess their private keys and steal their funds. This fear has become normal in the crypto space over the years.

However, recent research from Coinbase shows that the real danger could be much worse.

David Duong, the head of investment research at the firm, recently took to LinkedIn to warn that the threat affects way more than just wallet safety.

Two Ways Quantum Computing Could Threaten Bitcoin

Bitcoin relies on two main pillars to keep it secure. The first is called ECDSA which handles digital signatures and proves who owns which coins. The second is SHA-256 (or the math problem that miners must solve to process transactions). 

According to Duong, a powerful enough computer could attack both at once.

The first threat is the one most people know, where an attacker could use Shor’s Algorithm to find a private key from a public one. 

The second threat, however, involves Grover’s Algorithm, which could allow a miner to find new blocks much faster than anyone else. This creates a massive imbalance in the mining industry and could lead to a 51% attack on the entire network.

Why 6.5 Million BTC Are Currently at Risk

The risk is not spread evenly across every wallet as some older address types are much weaker against these future machines. 

For example, the earliest coins mined by Satoshi Nakamoto use a format called P2PK. These addresses show the public key directly on the blockchain, making them easy targets.

Data shows that about 32.7% of the total supply is currently in these vulnerable formats. This includes about 6.51 million Bitcoin that could be stolen if owners do not move them. 

Even modern formats like Taproot (P2TR) might have weak spots if they are used in certain ways. This makes a broad migration to new security standards a priority for the community.

The Debate Between Skeptics and Alarmists

Not everyone agrees that a digital doomsday is on the stove. Adam Back, a legendary figure in the cypherpunk movement, thinks the threat is overblown. 

He argues that the technology needed to break this encryption is still decades away. To him, these machines are more like lab experiments than actual weapons.

On the other side, fund managers like Charles Edwards believe we need to act now. He warns that if the network does not show it is “quantum-proof” by 2028, the price could suffer. 

He says that investors might get nervous and sell their holdings long before a hack ever happens. This divide in the community makes it hard to agree on a single path forward.

Related Reading: Hacks and Security Incidents in 2025: A Year That Exposed Crypto’s Weakest Links

How the Network Can Prepare for Quantum Risks

The good news is that the open-source community is already working on solutions. One path involves a “soft fork” to add newer and stronger signatures. 

These would use math that even a quantum machine cannot easily solve. The US National Institute of Standards and Technology (NIST) has already even listed several winners for these new standards.

Investors should note that the transition will not be immediate, and even the fastest emergency plan could take about two to seven years to finish. 

This longer path would make sure that every wallet and exchange has enough time to update their software without losing any funds.

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