A new report from Quantus is raising concerns that the cryptocurrency industry may not be moving quickly enough to prepare for the rise of quantum computing. According to the report, more than $2 trillion worth of digital assets could eventually be exposed if current cryptographic systems are broken by future quantum machines.
Quantum Computing Is Becoming a Real Crypto Concern
For years, the idea that quantum computers could crack modern encryption was considered a distant possibility. However, Quantus argues that recent breakthroughs from companies such as Google, IBM, and Quantinuum are accelerating the timeline.
The report, titled The State of Quantum: What Crypto Can’t Afford to Ignore, suggests that the industry should no longer treat quantum computing as a problem for future generations. Instead, crypto networks may need to begin preparing for a potential threat within this decade.
At the center of the concern is Shor’s Algorithm, a quantum computing technique capable of breaking the cryptographic systems that secure Bitcoin, Ethereum, and many other blockchain networks. These systems currently rely on digital signature standards such as ECDSA and Ed25519, which are considered secure against traditional computers but vulnerable to sufficiently powerful quantum machines.
Why Crypto Faces a Unique Challenge
Unlike traditional technology companies, blockchain networks cannot simply update their security systems overnight.
Banks, internet providers, and software companies can gradually replace older encryption methods through software updates. Public blockchains face a much more complex challenge because transaction histories and public keys remain permanently recorded on-chain.
Any transition to quantum-resistant security would require coordination among:
- Wallet providers
- Exchanges
- Custodians
- Validators
- Developers
- Governance communities
- Individual users
Quantus CEO Christopher Smith warned that crypto may not receive a clear warning before a quantum threat becomes serious.
If the industry delays preparation, users could be forced to move assets under stressful conditions while attackers race to exploit vulnerable systems.
Bitcoin Could Face the Biggest Migration Problem
Bitcoin presents one of the most difficult cases.
The report estimates that between 2.3 million and 3.7 million BTC are permanently inaccessible because their owners have lost access to their private keys. These coins cannot be migrated to new quantum-resistant wallets.
This creates a major dilemma for the network:
- Should vulnerable coins remain untouched?
- Should they be frozen?
- Should new rules be introduced to protect the network?
These questions remain unresolved.
Quantum-Safe Security Comes With Trade-Offs
Moving to post-quantum cryptography is not as simple as swapping one signature system for another.
Current Bitcoin transactions use signatures that require roughly 97 bytes of cryptographic data. A comparable transaction using a quantum-resistant standard such as ML-DSA-87 would require approximately 7,187 bytes.
That represents an increase of nearly 70 times in transaction size.
Such a jump could place significant pressure on network throughput, storage requirements, and block space unless major architectural upgrades are introduced.
The Risk Extends Beyond Wallets
The report stresses that the threat is not limited to individual crypto holders.
Many critical parts of the digital asset ecosystem also rely on traditional cryptography, including:
- Stablecoin administrator keys
- Cross-chain bridges
- Oracle networks
- Multisignature custody systems
- Governance contracts
A successful attack against any of these systems could create ripple effects throughout lending protocols, derivatives markets, decentralized exchanges, and institutional custody platforms.
The Technology Already Exists
The migration tools are beginning to emerge.
In August 2024, the U.S. National Institute of Standards and Technology (NIST) finalized its first set of post-quantum cryptography standards, providing organizations with approved frameworks for upgrading their security systems.
Major technology companies have already started adapting:
- Apple
- Signal
- Cloudflare
Meanwhile, much of the crypto industry is still debating how such a transition should be implemented.
A Defining Moment for Crypto
Quantus describes the coming period as the “Great Quantum Filter” — a phase where investors may increasingly favor networks built with quantum-resistant security from the start.
While the company itself is developing a quantum-secure Layer-1 blockchain, the broader message extends beyond its own business interests.
The core warning is simple: the challenge is not whether quantum computers eventually become powerful enough to threaten current cryptography. The real challenge is whether the crypto industry can coordinate a successful transition before that day arrives.
As quantum technology advances, preparation may become just as important as innovation.
