Growing concerns over quantum computing and its ability to disrupt Bitcoin’s encryption are limiting institutional participation. According to Kevin O’Leary, the Canadian investor and Shark Tank personality, until those threats are resolved, major investors are unlikely to raise their Bitcoin allocations beyond 3%.
Experts caution that while quantum computing is nascent, it poses a potential structural vulnerability to Bitcoin’s protocol.
Reflecting this concern, Jefferies strategist Christopher Wood revealed last month he had removed Bitcoin from his model portfolio due to concerns over quantum breakthroughs.
However, the Bitcoin community and developers are actively preparing for quantum challenges, with critical proposals now entering the official codebase.
Coinbase has established an advisory board focused on quantum threats, and Ethereum co-founder Vitalik Buterin has advocated for upgrades that would make blockchain systems resistant to such attacks.
October crypto crash revealed why Bitcoin and Ethereum dominate
Bitcoin is hovering around $67,700 at press time, down about 46% from its peak value of $126,000 established last October, per CoinGecko.
The top crypto asset has faced headwinds following the October 10 crash that wiped out $19 billion in leveraged crypto positions.
On the pullback, O’Leary suggested that something more important is happening beneath the surface than just price volatility.
The business mogul said last month in a CoinDesk podcast that he had cut 27 crypto positions from his portfolio to concentrate solely on the “Two Girl Dance” of Bitcoin and Ethereum, along with the energy infrastructure supporting them.
Source: https://cryptobriefing.com/quantum-risks-in-bitcoin-exposure/
