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Bitcoin (BTC) Faces Dual Test of Quantum Threat and Institutional Adoption | Flash News Detail | Blockchain.News
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7/5/2025 12:18:01 PM

Bitcoin (BTC) Faces Dual Test of Quantum Threat and Institutional Adoption

Bitcoin (BTC) Faces Dual Test of Quantum Threat and Institutional Adoption

According to @rovercrc, the cryptocurrency market faces a dual challenge from the imminent threat of quantum computing and the current slow adoption by institutional players. The author highlights that 'Q-Day,' when quantum computers could break current encryption, poses a significant risk to Bitcoin (BTC) and Ethereum (ETH), citing warnings from IBM's Jay Gambetta about 'Harvest Now, Decrypt Later' attacks and a prediction from Tilo Kunz of Quantum Defen5e that this could occur as soon as 2025. The analysis points out that approximately 4 million BTC are vulnerable, and Ethereum co-founder Vitalik Buterin has already proposed emergency hard forks. Concurrently, the author references insights from Gerry O’Shea of Hashdex, who notes that the majority of financial advisors are not yet recommending crypto due to volatility concerns. However, O’Shea predicts this hesitation will fade and identifies stablecoins as a key 2025 theme, potentially driving value for underlying platforms like Ethereum (ETH) and Solana (SOL).

Source

Analysis

The cryptocurrency market is currently navigating a complex landscape defined by two powerful, yet distinct, challenges: the long-term existential threat of quantum computing and the more immediate, practical hurdle of mainstream adoption by financial advisors. While developers and cryptographers grapple with a future where quantum computers could shatter blockchain security, asset managers are simultaneously working to educate the gatekeepers of traditional finance. The current market, with Bitcoin (BTC) trading steadily around the $108,064 level on the BTC/USDT pair, presents a picture of relative calm that belies these significant underlying pressures.

The Quantum Countdown: Is Crypto's Foundation Secure?

The concept of "Q-Day"—the moment a quantum computer becomes powerful enough to break current cryptographic standards—is no longer a distant sci-fi trope. It's a risk factor now being formally acknowledged by the world's largest financial institutions. In a stark warning, BlackRock amended its Bitcoin ETF filing in May 2025 to include quantum computing as a critical risk that could fundamentally undermine the cryptographic algorithms securing BTC. This isn't just theory; it's a multi-trillion-dollar concern. As Jay Gambetta of IBM Quantum notes, the threat is already active through "Harvest Now, Decrypt Later" attacks, where encrypted data is being collected today with the intent of decrypting it with future quantum power.

The Scope of the Threat to BTC and ETH

The potential damage is staggering. Researchers have warned that as many as 4 million bitcoin, or roughly 25% of the total usable supply, are vulnerable to quantum attacks because they are held in addresses whose public keys have been exposed. For a trillion-dollar asset, this represents a catastrophic vulnerability. The situation is equally dire for Ethereum. Co-founder Vitalik Buterin has already outlined emergency hard-fork scenarios to deal with the day quantum computers can crack user accounts. Such a process could involve halting the entire Ethereum blockchain, which currently processes assets like ETH trading at $2,505 on the ETH/USDT pair, for an extended period. According to researchers at the University of Kent, a post-quantum upgrade for Bitcoin could necessitate 75 days of downtime, a scenario with unimaginable market implications. The urgency is underscored by a December 2023 Reuters report where Tilo Kunz of Quantum Defen5e suggested Q-Day could arrive as soon as 2025.

Financial Advisors: The Bridge to Mainstream Capital

While the quantum threat looms on the horizon, a more immediate challenge for crypto's growth is the cautious stance of financial advisors. According to Gerry O’Shea, head of global market insights at Hashdex, the "overwhelming majority" of advisors are not yet recommending crypto allocations to their clients. This hesitation persists even as spot Bitcoin ETFs have been active in the U.S. for well over a year. The primary concerns cited are volatility, energy consumption, and historical associations with illicit activities. The market's inherent price swings, visible even in daily ranges where BTC can move over $1,000 (from a low of $107,267 to a high of $108,341), remain a significant psychological barrier for advisors accustomed to more stable asset classes.

Shifting Conversations and Future Opportunities

However, O'Shea notes a positive shift in the conversation. Advisors are moving beyond basic questions about what blockchain is and are now exploring how digital assets fit into a diversified portfolio. The narrative around Bitcoin's energy use is also evolving, with a growing appreciation for how mining can stabilize power grids and incentivize renewable energy projects. Furthermore, O'Shea highlights stablecoins as the first true "killer app" that provides a clear utility that advisors and their clients can intuitively grasp. This places a spotlight on the underlying infrastructure, making smart contract platforms like Ethereum and Solana (SOL), with SOL/USDT trading at $147.11, increasingly interesting investment theses. As advisors slowly complete their due diligence, the floodgates to trillions in managed assets may begin to open, but this process requires persistent education to overcome deep-seated inertia. The crypto industry must therefore fight a war on two fronts: preparing its technical foundations for the quantum era while simultaneously building the trust and understanding necessary to secure its place in modern finance.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.

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