Crypto Industry Divided Over Quantum Computing Threat as Coinbase Forms Advisory Board

Debate Intensifies Over Quantum Risk to Bitcoin

The cryptocurrency industry finds itself at a crossroads as concerns about quantum computing's potential threat to blockchain security collide with differing opinions on whether these fears are impacting Bitcoin's market performance.

Glassnode lead analyst James Check dismissed the notion that quantum computing concerns are weighing on Bitcoin's price, stating that linking the two "is akin to blaming market manipulation for red candles, and declining exchange balances for green ones" ^[1]. According to Check, Bitcoin's recent price weakness stems primarily from substantial selling by long-term holders, noting that "Bitcoin saw sell-side from HODLers in 2025, which would have killed every prior bull thrice over, and then once more" ^[1].

However, not all industry voices agree. Castle Island Ventures partner Nic Carter argued that Bitcoin's "mysterious" underperformance is "due to quantum" and is "the only story that matters this year," adding that "the market is speaking and the devs aren't listening" ^[1].

Traditional Finance Sounds Alarm

The quantum computing discussion has gained traction among traditional finance executives. Jefferies strategist Christopher Wood removed Bitcoin from his "Greed & Fear" model portfolio, citing concerns that advances in quantum technology could undermine the cryptocurrency's long-term security ^[1][2]. Wood replaced Bitcoin with gold and gold-mining equities, emphasizing doubts about digital assets' store-of-value claims in the face of technological change ^[2].

Other institutional voices, including representatives from BlackRock and UBS CEO Sergio Ermotti, have warned that quantum advances could eventually enable attackers to derive private keys from public ones, putting millions of Bitcoin at risk ^[2].

Coinbase Takes Proactive Stance

In response to growing concerns, Coinbase announced the creation of an Independent Advisory Board on Quantum Computing and Blockchain earlier this week ^[2]. The board will assemble leading experts in quantum computing, cryptography, and blockchain to assess risks and provide industry guidance ^[2].

The advisory panel includes quantum computing pioneer Scott Aaronson, Stanford cryptography expert Dan Boneh, Ethereum researcher Justin Drake, and Coinbase's Head of Cryptography, Yehuda Lindell ^[2]. The group plans to publish position papers, recommend best practices for long-term security, and respond to significant quantum computing advances ^[2].

Coinbase research indicates that approximately 20% to 50% of Bitcoin's supply, particularly coins in older wallet formats, could be vulnerable to long-range quantum attacks ^[2]. The exchange emphasized that preparing for future challenges is crucial to maintaining digital asset security ^[2].

Market Performance and Outlook

Real Vision chief crypto researcher Jamie Coutts observed that "quantum risk doesn't move with price, but the gap does," suggesting that "as Bitcoin's price rises, confidence rises — and the willingness to push through disruptive, precautionary upgrades falls" ^[1].

Bitcoin ended 2025 approximately 6.33% lower than it started the year, dropping from $93,425 to $87,508 ^[1]. The cryptocurrency reached a peak above $126,000 in October, falling short of some predictions that forecast highs of $250,000 ^[1].

Strategy Chairman Michael Saylor offered a contrarian view, asserting that quantum computing will actually strengthen Bitcoin rather than threaten it, citing network upgrades and coin migrations as security enhancements ^[2].

Coinbase's first position paper from the advisory board is expected early next year, which will lay out a roadmap for quantum resilience in blockchain systems ^[2].