“Quantum-Proof” Your Bitcoin

Let’s talk about the Bitcoin-Eating Pacman.

No, not Michael Saylor…

No, not El Salvador…

I’m talking about Bitcoin’s biggest threat: quantum computers.

Before you freak out, let’s start here:

Bitcoin is fine.

Despite the clickbait headlines, it’s not about to be nuked into oblivion by quantum computers tomorrow.

But let’s talk about why you should care, because the quantum threat to Bitcoin is real—not now, not in the next year, but in the future.

And if you hold Bitcoin, or if you even care about the digital world we live in, this is something you want to understand.

Quantum computers, when they’re powerful enough, could change everything.

BUT, here’s the thing.

Even individuals directly working on cutting-edge 127-qubit machines describe quantum computing as being in its early “stone tools” stage.

We need several headline-crushing breakthroughs to start worrying about quantum computing.

The most bullish estimates give quantum computing five years to break current encryption standards. (For everything, not just Bitcoin.)

Source: X.com

Again, BUT…

Cryptography—the stuff that keeps Bitcoin safe—is indeed quantum computing’s first target.

With enough quantum muscle, a computer could reverse-engineer a private key from a public key, unlocking every Bitcoin sitting in that wallet.

The kicker: early Bitcoin addresses, like the ones Satoshi Nakamoto himself used, are especially vulnerable.

It’s important for you to understand why.

“Quantum-Proof” Your Bits

Your Bitcoin wallet has two keys.

An encryption (public key) and a decryption (private) key.

Imagine your public key is your house address. It tells people where to send things (like Bitcoin) but doesn’t let them in.

Old addresses — like Satoshi’s — use something called “pay-to-public-key” (P2PK). That means the public key is sitting out in the open for anyone to see.

Back then, the tech world wasn’t thinking about quantum computers.

Today’s Bitcoin addresses use hashed (or “cloaked”) public keys. A hashed public key is like putting your house address into a mailbox system that assigns it a unique locker number.

People can still send stuff to you, but they can’t figure out the original address just by looking at the locker number.

That makes it harder to reverse-engineer.

For a classical computer to do so, it would take longer than the age of the Universe. The idea is that quantum computers could collapse that down into a couple of hours.

Given that, if you’re worried about quantum computing in the near term…

Stop reusing Bitcoin addresses.

Until you send Bitcoin from a new address, that public key is hidden and not on the blockchain.

If there’s someone out there snooping with a quantum computer, those who reused their addresses are the low-hanging fruit.

Although large-scale quantum computers capable of breaking Bitcoin’s encryption are not yet available…

Adopting these best practices now protects against a potential future where such attacks become feasible.

Of course, this only keeps you from becoming low-hanging fruit. What we really need is quantum-proof Bitcoin wallets.

So…

Next step, stay informed about Bitcoin Improvement Proposals (BIPs).

You don’t have to be an expert on Bitcoin’s code, just be aware that THIS is where the work is happening.

(If you’re invested in Ethereum, the same thing applies: pay attention to Ethereum Improvement Proposals (EIPs). Solana? They have Solana Improvement Documents or SIMDs. So on, so forth.)

Developers on all major chains are working on creating quantum-resistant addresses.

Once these new addresses are implemented, there will likely be a window for everyone to move their funds. You don’t want to be the last one holding coins in an old, vulnerable address.

Now, the big question:

When Do I Need to Worry?

When will quantum computers reach the point where Bitcoin is in real trouble? Again, most experts suggest we’re at least 5 to 20 years away.

It’s not just about building a quantum computer with millions of qubits—it’s also about solving massive issues like “error correction”.

Brass tacks:

Bitcoin evolves, and some of the brightest developers are working on solutions to quantum threats. The incentives are too big to ignore.

Here’s your takeaway: Stay calm, stay informed, and follow best practices.

Don’t reuse addresses. Pay attention to Bitcoin development. And remember, if quantum computers ever do arrive in their final boss form, Bitcoin is just one of many things they’ll disrupt.

Editor’s note: You can sign up for the free e-letter Altucher Confidential here.