TL;DR
- Tether CEO highlights the long-term risks quantum computing could pose to Bitcoin’s security, emphasizing that future advancements could enable the recovery of Bitcoin from lost or inactive wallets.
- The potential revival of Satoshi’s dormant coins raises concerns about market stability, with analysts warning that reintroducing these coins could disrupt Bitcoin’s supply dynamics.
- Ardoino notes that Bitcoin will likely adopt quantum-resistant encryption protocols before quantum computers become a tangible threat
Tether CEO Paolo Ardoino has sparked significant discussion within the cryptocurrency community by highlighting the long-term risks quantum computing could pose to Bitcoin’s security.
In a series of recent statements, Ardoino emphasized that while quantum computing is not an immediate threat, its advancement could eventually enable the recovery of Bitcoin trapped in lost or inactive wallets. This includes the estimated 1.1 million BTC linked to Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Prediction.
Quantum computing is still very far from any meaningful risk of breaking Bitcoin cryptography.
Quantum resistant addresses will eventually be added to Bitcoin before there is any serious threat.All people alive (and that have access to their wallets) will move…
— Paolo Ardoino 🤖🍐 (@paoloardoino) February 8, 2025
Quantum computers leverage quantum mechanics to solve complex problems exponentially faster than classical computers. Their ability to crack elliptic curve cryptography (ECC) could expose private keys from public addresses, particularly for inactive wallets where keys remain unchanged.
Ardoino stressed that Bitcoin’s current cryptographic defenses remain secure but warned that “any Bitcoin in lost wallets, including Satoshi’s if he is not alive, will be hacked and put back in circulation” once quantum technology matures.
The Threat to Satoshi’s Stash and Market Stability
The potential revival of Satoshi’s dormant coins has raised concerns about market stability. Analysts estimate that reintroducing even a fraction of the 1 million BTC linked to Nakamoto could disrupt Bitcoin’s supply dynamics, which have long relied on the assumption that lost coins are permanently out of circulation.
Pseudonymous trader Crypto Skull warned that such a scenario could send the market “back to the stone age” due to sudden supply inflation. To mitigate this risk, experts like Emin Gün Sirer, co-founder of Ava Labs, have proposed freezing early Bitcoin transactions that used outdated Pay-to-Public-Key formats, which expose public keys and are more vulnerable to quantum attacks.
However, Ardoino reiterated that Bitcoin’s 21 million supply cap will remain intact regardless of technological advancements.
Proactive Measures and the Path to Quantum Resistance
The crypto industry is already preparing countermeasures. Ardoino noted that Bitcoin will likely adopt quantum-resistant encryption protocols, such as quantum-safe signatures before quantum computers become a tangible threat.
Active users are expected to migrate funds to quantum-resistant addresses, while inactive wallets risk exploitation. Ardoino’s remarks underscore the need for proactive adaptation. As he stated, “The history of cryptography is one of change and adaptation”. While the quantum threat remains distant, its implications for Bitcoin’s future security and market dynamics demand vigilance.
