While quantum computing is often touted as a potential threat to Bitcoin’s security, Tether CEO Paolo Ardoino believes it’s more likely to unlock lost Bitcoin fortunes, including the estimated 1.1 million Bitcoin held by the cryptocurrency’s enigmatic creator, Satoshi Nakamoto.
Ardoino recently suggested that advancements in quantum computing could eventually crack older, inaccessible Bitcoin wallets, reintroducing potentially millions of Bitcoin back into circulation. Although he acknowledges that the technology is “still very far” from posing an immediate threat, he anticipates that Bitcoin will transition to quantum-resistant addresses before the issue becomes critical.
Bitcoin’s security currently relies on elliptic curve cryptography, a system that quantum computers could theoretically break. Some researchers estimate this could happen within the next five to ten years. Pierre-Luc Dallaire-Demers, scientist-in-residence at the University of Calgary, supports this timeline, stating, “We are about five years away from commercial quantum computers being able to break the elliptic curve keys that secure Bitcoin wallets.”
If these predictions prove accurate, over 3.5 million Bitcoin currently considered lost due to forgotten private keys or misplaced wallets could become accessible again. This influx of previously inaccessible Bitcoin could significantly impact the cryptocurrency’s supply dynamics, which have long operated under the assumption that lost coins are permanently removed from circulation.
Satoshi Nakamoto, Bitcoin’s pseudonymous creator, famously stated that “lost coins make everyone else’s coins worth slightly more.” However, the advent of practical quantum computing could challenge this foundational principle.
Ardoino believes that most Bitcoin holders will be able to upgrade to quantum-resistant addresses as a precautionary measure. However, if quantum computing advances faster than anticipated, Nakamoto’s assertion about lost coins might no longer hold true, potentially leading to a significant shift in Bitcoin’s value and overall market dynamics.
