TLDR:
- The threat of quantum computing to Bitcoin’s encryption limits institutional exposure to a maximum of 3%.
- Following the market collapse in October, major investors have decided to concentrate their capital exclusively on Bitcoin and Ethereum.
- The crypto sector is already working on security updates and quantum-resistance protocols to protect the network.
Shark Tank star Kevin O’Leary is once again sparking debate in the financial sector. In recent statements, warns about Bitcoin and quantum computing, asserting that this technology is a structural threat preventing major funds from increasing their capital allocation.
The entrepreneur indicated that investors are maintaining a cautious stance due to the lack of clarity on how the network will address this technological challenge. Despite his bullish long-term view of the asset, O’Leary maintains that institutions will not exceed the 3% exposure threshold until total security is guaranteed.
This concern is not isolated; strategists at firms like Jefferies have begun removing Bitcoin from their model portfolios. The possibility of a quantum computer breaking the blockchain’s encryption is a risk that institutional capital is not willing to ignore completely.
Market consolidation following the October 2025 crisis
Beyond the technical hurdles, the current landscape forced a deep cleansing of the ecosystem. O’Leary highlighted that, after the crash of October 2025, most altcoins suffered drops of up to 90% without showing signs of a real recovery.
Consequently, institutional interest has narrowed down to what he calls the “two-girl dance”: Bitcoin and Ethereum. Major players have realized that these two assets capture the bulk of the market’s upside without the extreme risks associated with low-cap coins.
In summary, the developer community is already integrating solutions into the codebase to mitigate quantum threats. The future of mass adoption will depend on how quickly these infrastructures adapt to the new era of advanced computing.
