Willy Woo, a prominent figure in the cryptocurrency space and co-founder of the Bitcoin Vector project and Crest, has indicated that the longstanding trend of valuing Bitcoin against gold has been disrupted. This shift is attributed to emerging concerns over quantum risk, which has begun to influence market valuations.
In Woo”s assessment, Bitcoin should inherently hold a greater value relative to gold. However, the market is increasingly factoring in the risks associated with the potential vulnerability of the ECDSA (Elliptic Curve Digital Signature Algorithm) cryptographic signature to attacks from quantum computers. He emphasized that even transitioning to quantum-resistant signatures might not fully address the issue of approximately 4 million lost bitcoins that could potentially re-enter circulation.
Woo estimates a 75% probability that these coins will not be rendered inaccessible through a hard fork, suggesting that the market must consider the potential selling pressure from this volume of coins. To provide context, he noted that since 2020, companies and spot ETFs have collectively acquired an estimated 2.8 million BTC, highlighting the significant potential impact of the lost coins.
Looking ahead, Woo anticipates that “Q-Day,” the day when quantum computers could effectively break current cryptographic methods, might arrive within the next 5 to 15 years. This timeline raises substantial concerns over the security of cryptocurrencies.
Echoing Woo”s sentiments, NFT collector known as 0xBaron acknowledged the substantial risks posed by quantum technology. He noted that the financial landscape will likely necessitate upgrades across traditional systems, and it seems improbable that Bitcoin would remain unchanged amid such advancements.
In previous discussions, Woo has spoken on safeguarding Bitcoin from the threats posed by quantum computing. His recent remarks coincide with findings from CoinShares regarding the growing quantum hacking threat to the cryptocurrency.
