Quantum risk real to some but not all crypto wallets ‘equally vulnerable’: Galaxy

Galaxy Digital research analyst Will Owens stated that the quantum computing threat to Bitcoin investors is real, but not all wallets are vulnerable, and the necessary solutions are actively being developed. In theory, a quantum computer could derive private keys from public keys, enabling an attacker to steal coins by impersonating owners and forging signatures. However, Owens emphasized that most wallets are not currently vulnerable, as funds are only at risk when public keys are exposed on-chain.

Wallet Vulnerabilities and Exposure

Wallets are exposed to quantum threats in two primary ways: those with publicly visible keys on the blockchain and those whose public keys are revealed when a transaction is made. The potential impact of quantum computing on cryptocurrency security has been a long-standing debate within the community, with concerns that advanced computers could break encryption, expose sensitive data, and lead to the theft of user funds.

Developer Efforts and Proposals

Contrary to some criticisms that Bitcoin Core developers are neglecting quantum-related proposals, Owens's research indicates a significant acceleration in development since late 2025. He noted that substantial work is underway to address quantum vulnerabilities and mitigations, with a maturing set of proposals actively being developed, reviewed, and debated by experienced contributors. These proposals are not theoretical but are concrete steps being taken within the Bitcoin ecosystem.

Proposed Solutions and Community Input

The community has seen various solutions proposed, including crypto personality Willy Woo's suggestion to hold Bitcoin in a SegWit wallet for approximately seven years as a temporary measure against the quantum threat. While the technology to break current encryption is still considered decades away by some, and traditional targets like banking giants may be compromised first, the ongoing development suggests proactive measures are being taken.

Governance Challenges and Aligned Incentives

Owens acknowledged that implementing a post-quantum solution will likely face governance challenges due to Bitcoin's decentralized nature, lacking a central authority to mandate software updates. However, he highlighted that the external, technical, and universal nature of the quantum threat aligns incentives across all network participants—miners, holders, and exchanges—who have a direct financial interest in maintaining the network's security. This shared interest is expected to facilitate the adoption of necessary upgrades.

“For investors, the key takeaway is straightforward: the risk is real but recognized, and the people best positioned to address it are working on it.”