Bitcoin experts are divided on freezing Satoshi’s coins as quantum threat reaches 34% of supply.
July 5, 2026
Bitcoin experts are currently divided on the potential threat that quantum computing poses to the security of the cryptocurrency. With more than one third of all Bitcoin addresses having their public keys permanently exposed on the blockchain, experts warn that a quantum computer capable of running Shor’s algorithm could quietly steal coins before anyone detects it. This has sparked a governance crisis within the Bitcoin community, as there is no designated authority to address this issue.
The debate was reignited by Binance founder Changpeng Zhao during a podcast appearance where he suggested freezing dormant addresses, including those belonging to Bitcoin’s elusive creator, Satoshi Nakamoto, in the event of quantum computers compromising the security of the network. Zhao’s proposal outlined a process where holders of older addresses would have a window to migrate their coins to newly protected addresses before a community vote on whether to freeze dormant wallets. However, this proposal has met resistance and has not garnered a consensus within the community.
Google’s Quantum AI team further heightened concerns about quantum threat to Bitcoin security with a whitepaper published in March 2026. The paper revealed a significant breakthrough in quantum computing, reducing the resources required to crack Bitcoin’s cryptography by 20-fold. This advancement means that a powerful quantum computer could potentially recover a Bitcoin private key in a matter of minutes, putting a substantial portion of the cryptocurrency at risk.
Currently, more than 34% of all Bitcoin in circulation has its public key permanently recorded on the blockchain, making it susceptible to quantum attacks. While the gap between current quantum hardware and a Bitcoin-breaking machine is significant, experts like Justin Drake and Adam Back believe that the threat is closer than previously anticipated. Drake’s confidence in a quantum computer recovering a Bitcoin private key by 2032 has increased significantly, while Back places the practical quantum threat at 20 to 40 years out.
One of the most controversial proposals addressing the quantum threat is Bitcoin Improvement Proposal 361 (BIP-361), which suggests creating a deadline for transitioning to quantum-resistant cryptography and possibly freezing dormant addresses. This proposal has faced fierce backlash within the Bitcoin community, as there is no consensus on how to address the looming quantum threat.
The urgency to address the quantum threat lies in the covert nature of potential attacks. A quantum attacker could compute private keys for known public keys and transfer funds weeks or months later, without alerting anyone. This raises concerns that Bitcoin holders may not realize their coins have been stolen until it’s too late.
Overall, the Bitcoin community is grappling with the complex issue of quantum threat and the need for governance to address this unprecedented challenge to the security of the cryptocurrency. With no clear consensus on how to proceed, the community faces a race against time to secure the network against potential quantum attacks.