Over 35% of Bitcoin Supply Faces Potential Quantum Risk, New Data Shows
About 7.12 million Bitcoin, or 35.4% of all coins, now has a quantum vulnerability as their public keys appear on Bitcoin's public ledger, according to Glassnode data.
The vulnerability stems from public keys being visible on Bitcoin's public ledger. While current computers cannot exploit this, a sufficiently powerful quantum computer could theoretically break the encryption and transfer these coins. Most owners can address the risk by moving their coins to fresh addresses.
Exchange Holdings
Glassnode data reveals exchanges hold 11.6% of Bitcoin in exposed addresses. Robinhood shows 100% exposure, Binance 85%, and Coinbase approximately 5%. The US government holdings show no exposure. Coinbase, which holds Bitcoin for most US spot ETFs, has acknowledged the threat.
We have begun the work to upgrade our custody to be post-quantum.
Satoshi's Coins
About 1 million BTC linked to Bitcoin's creator Satoshi Nakamoto remains in early addresses untouched for over 15 years, making it permanently vulnerable. Unlike reused addresses, these cannot be fixed by moving them. Proposals to freeze such coins exist but have no activation date.
Timeline Concerns
Google reported in March that a quantum machine with under 500,000 qubits could break this encryption in minutes, but no such machine exists yet. Experts estimate such technology may be 20-40 years away. The exposed coins represent over $500 billion at current prices, though CoinCounts suggests only about 10,200 BTC would realistically impact the market.
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