VanEck Puts Bitcoin on Watch as Quantum Concerns Intensify

Some veteran users are already exploring privacy-focused alternatives like Zcash. At the same time, BlackRock’s digital assets head Robbie Mitchnick said major institutional clients are no longer treating Bitcoin as a future payments network, calling that vision “speculative” and far from investable. Instead, investors are focused almost entirely on Bitcoin’s store-of-value role while stablecoins seize the payments market and expand into remittances, cross-border transfers and settlement.

VanEck Flags Quantum Risk for Bitcoin

Bitcoin’s long-term security model and its place in the coming decade are once again a hot topic after VanEck CEO Jan van Eck raised concerns about whether the cryptocurrency’s encryption is strong enough to withstand future advances in quantum computing. Speaking on CNBC, van Eck said the question quietly became one of the most important internal discussions in the Bitcoin community. While the asset manager is still bullish on Bitcoin for now, he warned that VanEck will not hesitate to walk away if quantum breakthroughs fundamentally threaten the network’s core assumptions.

Jan van Eck interview with CNBC

Van Eck explained that although Bitcoin continues to attract global liquidity and holds a strong position in diversified portfolios, many long-time Bitcoiners are actively exploring alternatives for enhanced privacy. According to him, Bitcoin “OGs and maxis” have been drawn toward Zcash as they search for stronger transactional privacy. 

That trend has been reflected in the market. Zcash exploded by more than 1,300% in the past three months as interest in anonymous digital payments surged. The move comes despite reassurances from experts like cryptographer Adam Back, who recently stated that meaningful quantum threats to Bitcoin are still at least two to four decades away.

The VanEck chief also addressed the state of the market, and suggested that Bitcoin’s current price weakness is part of a four-year cycle that is already being priced in. He explained that historically, each cycle included one major negative year, and based on past patterns, 2026 is widely expected to be that downturn year. Van Eck believes investors are already positioning accordingly, which may be contributing to Bitcoin’s softer performance this cycle.

Still, he argued that Bitcoin is an essential component of modern portfolios due to its deep on-chain liquidity and institutional relevance. He encouraged long-term investors to rely on dollar-cost averaging during bearish phases rather than chasing rallies at cycle peaks.

Bitcoin fell more than 30% since its October all-time high, and briefly dipped just above $82,000 before rebounding to around $88,000. Despite the drawdown and the questions swirling around long-term encryption, van Eck maintains that Bitcoin’s role in global markets is secure for now.

BTC’s price action over the past week (Source: CoinMarketCap)

BlackRock Clients Don’t See Bitcoin as Payments

BlackRock’s head of digital assets, Robbie Mitchnick, says most major institutional clients are not evaluating Bitcoin through the lens of everyday payments when considering whether to invest. On a podcast, Mitchnick explained that while some envision Bitcoin becoming a global payments network, that scenario is viewed as a distant “out-of-the-money option-value upside” rather than a core investment rationale. For now, he said investors are overwhelmingly focused on Bitcoin’s “digital gold” narrative and its role as a long-term store of value.

Mitchnick stressed that Bitcoin’s ability to function as a mainstream payments system is still highly speculative and will require a lot of progress on scaling solutions like the Lightning Network. He explained that layer-2 rollups, which were once hailed as a promising avenue for faster and cheaper Bitcoin transactions, have come under scrutiny. Galaxy Research reported in August of 2024 that many of these networks may not be sustainable long-term.

While Bitcoin’s payments future is still uncertain, Mitchnick said stablecoins have already shown clear product-market fit. He described them as “hugely successful” in payments due to their ability to move value quickly and efficiently, and added that their use cases extend well beyond crypto trading and DeFi. He predicted that stablecoins will increasingly power retail remittances, corporate transfers, cross-border settlements and even capital markets activity as adoption expands.

Mitchnick believes Bitcoin could compete in retail remittance payments over time but said that such a shift should not yet be treated as a core assumption by investors. 

His thoughts are very similar to those from ARK Invest CEO Cathie Wood, who said the growth of stablecoins partially displaced Bitcoin’s expected role in global payments. Wood said that this trend prompted her to revise her 2030 Bitcoin price prediction downward by roughly $300,000 from her earlier $1.5 million target.

While Bitcoin still dominates as a store-of-value asset, the accelerating rise of stablecoins suggests the race for the future of digital payments may be unfolding along a different path than many early Bitcoin advocates expected.