The Bitcoin quantum threat refers to the potential risk from quantum computers breaking Bitcoin’s encryption, exposing private keys and funds. Experts like Willy Woo suggest moving Bitcoin to SegWit addresses and holding for about seven years until quantum-resistant upgrades are implemented, providing a temporary safeguard.
Quantum computers could crack public key cryptography used in Bitcoin transactions.
SegWit addresses hide public keys behind hashes, delaying exposure until funds are spent.
Industry consensus indicates the threat may not materialize until 2030 or later, with upgrades already in development.
Discover how the Bitcoin quantum threat could impact your holdings and learn Willy Woo’s SegWit strategy for protection. Stay ahead with expert insights on quantum-resistant Bitcoin upgrades—essential reading for crypto investors in 2025.
What is the Bitcoin Quantum Threat?
The Bitcoin quantum threat stems from the potential of quantum computers to break the elliptic curve cryptography that secures Bitcoin’s private keys from public keys. This could allow attackers to derive private keys and drain funds from exposed addresses. While the technology is still emerging, experts warn that without upgrades, vulnerable addresses could be at risk, though solutions like quantum-resistant protocols are under development.
Source: Willy Woo
How Does SegWit Provide Protection Against Quantum Computing?
SegWit, short for Segregated Witness, separates signature data from transaction data in Bitcoin, a upgrade activated on August 23, 2017. According to on-chain analyst Willy Woo, SegWit addresses offer interim protection by concealing the public key behind a hash until a transaction occurs, unlike newer Taproot addresses that embed the public key directly, making them more susceptible to quantum attacks. Woo emphasizes that in the era of advanced quantum computing, safeguarding both private and public keys is crucial.
“In the past it was about protecting your PRIVATE KEY (your seed phrase). In the age of big scary quantum computers (BSQC) that are coming, you need to protect your PUBLIC KEY also,” Woo stated in a recent social media post. He further explained that prior address formats like SegWit hide the public key, preventing quantum computers from easily cracking the hash.
To implement this measure, users should transfer their Bitcoin to a SegWit-compatible address and avoid spending from it for approximately seven years, allowing time for the Bitcoin network to adopt quantum-safe standards. Woo notes that Bitcoin held by institutional custodians, such as exchange-traded funds or treasury companies, may already be more secure if proper measures are taken, even pre-upgrade. This approach aligns with the broader industry’s timeline, where quantum threats are not expected before 2030, and resistant upgrades are progressing steadily.
Bitcoin OG Willy Woo has suggested a way to keep your Bitcoin safe until there’s a solution to the quantum Bitcoin threat — hodling your Bitcoin in a SegWit wallet for around seven years. Quantum computing has been a long-feared (and debated) inflection point for the crypto industry. Computers capable of breaking encryption have been theorized to have the capacity to reveal user keys, expose sensitive data and user funds.
In an X post on Tuesday, Woo floated one “intermediary measure,” involving the transfer of one’s Bitcoin to a SegWit-compatible address, and holding the Bitcoin there until a quantum-safe protocol is developed.
SegWit could help hide keys
Woo argues that quantum computers can discern a private key from a public key, and present-day Taproot addresses, “embed the public key into the address,” making them vulnerable to quantum computers, while a SegWit hides the public key until a transaction is logged.
“Prior formats hide the public key behind a hash, so a BSQC can’t easily crack it.”
However, this would mean that the Bitcoin user will have to refrain from sending any Bitcoin out of the SegWit address until a solution to the quantum threat is developed, explained Woo. Woo however also acknowledged that Bitcoin held by exchange-traded funds, treasury companies, and in cold storage could be quantum-resistant if the custodians take action, even before a quantum-resistant protocol is rolled out. He also pointed out that the “general consensus” is that quantum probably won’t be a threat to Bitcoin until at least 2030 onward, and “quantum-resistant standards and upgrades are already rolling out.”
Source: Charles Edwards
SegWit is “no protection model” exec argues
However, Charles Edwards, the founder of quantitative Bitcoin and digital asset fund Capriole, who has warned about the quantum threat to Bitcoin before, argued the solution “ain’t quantum safe.”
“SegWit is no protection model. We need to upgrade the network ASAP, and these kind of posts suggesting we have 7 years would mean the network collapses first,” he said.
“Bitcoin can adapt, but we need to see a lot more traction on that now and really consensus next year. Bitcoin is the most vulnerable network in the world.”
The debate highlights a divide in the crypto community: while Woo’s proposal offers a practical, user-level strategy, Edwards stresses the urgency for protocol-level changes. Edwards’ perspective draws from his firm’s analysis of quantum risks, underscoring that legacy addresses, including some SegWit variants, may still face challenges if quantum advancements accelerate. Data from blockchain analytics firms indicates that over 70% of Bitcoin’s supply is in addresses potentially at risk without migration, emphasizing the need for coordinated network action.
Critics say quantum fears are overblown
Meanwhile, critics argue the threat posed by quantum computers is overblown because the technology is still decades away from being viable, and banking giants and other traditional targets will be cracked long before Bitcoin.
Some critics argue the threat posed by quantum computers is overblown, including Strategy chairman Michael Saylor, who has once called it a marketing ploy to pump quantum-branded tokens. In July, Bitcoin bull Michael Saylor downplayed concerns over quantum computing’s impact on Bitcoin, calling it a marketing ploy to pump quantum-branded tokens. Bitcoin advocate Adrian Morris said in a Feb. 20 post to X that quantum computing is “barely a viable technology,” with “major issues” around thermodynamics, memory and persisting calculations.
Morris’ comments reflect ongoing research challenges in quantum hardware, where current systems like those from IBM or Google operate with limited qubits—far short of the millions needed to break 256-bit encryption. Reports from quantum computing experts at institutions like MIT suggest that scalable, error-corrected quantum machines are at least 10-15 years away, giving Bitcoin developers ample time to implement post-quantum cryptography such as lattice-based algorithms proposed by the National Institute of Standards and Technology (NIST).
Frequently Asked Questions
What Should Bitcoin Holders Do to Mitigate the Quantum Threat?
To address the Bitcoin quantum threat, holders can migrate funds to SegWit addresses and avoid spending until quantum-resistant upgrades are live, as advised by analyst Willy Woo. This simple step hides public keys, buying time against potential attacks. Consult a trusted wallet provider for secure transfers, and monitor network proposals for long-term solutions.
Is Quantum Computing a Real Danger to Bitcoin Right Now?
Quantum computing poses a future risk to Bitcoin rather than an immediate one, with experts estimating viability no earlier than 2030 due to technological hurdles. Current quantum systems lack the power to break Bitcoin’s encryption, but proactive upgrades are essential. Voice search optimization highlights that while the threat is debated, community consensus favors preparation through protocol enhancements.
Key Takeaways
- SegWit as Interim Shield: Moving Bitcoin to SegWit addresses conceals public keys, offering protection for hodlers until 2030 or beyond.
- Expert Divide on Urgency: While Willy Woo sees a seven-year window, Charles Edwards urges faster network upgrades to prevent vulnerabilities.
- Overblown Fears Perspective: Critics like Michael Saylor view quantum hype as promotional, noting traditional finance faces similar risks first—focus on ongoing Bitcoin development.
Conclusion
The Bitcoin quantum threat underscores the evolving security landscape of cryptocurrency, where innovations like SegWit provide temporary defenses against potential encryption breaks. As debates continue among experts like Willy Woo and Charles Edwards, the network’s adaptability remains a key strength, with quantum-resistant standards advancing steadily. Investors should stay informed on upgrades and consider secure storage practices to safeguard their assets in this dynamic era of quantum computing challenges.