Quantum Computing Threatens Bitcoin Holdings and Global Encryption Standards

Advances in quantum computing are accelerating the risk that current encryption algorithms such as RSA and ECC could be broken, prompting urgent calls for post‑quantum cryptography standards. The U.S. National Institute of Standards and Technology (NIST) is finalising new quantum‑resistant algorithms, but migration will require coordinated effort across industries and governments.

A Glassnode on‑chain analysis highlights the cryptocurrency angle, showing that 6.04 million BTC—about 30 % of the total supply—are stored at addresses where public keys are publicly visible, making them vulnerable to future quantum attacks. The report separates risk into structural exposure (1.92 million BTC, mainly early‑era Pay‑to‑Public‑Key outputs) and operational exposure (4.12 million BTC, driven by address‑reuse practices). Exchange wallets are a key concentration point: Binance holds approximately 85 % of its Bitcoin in at‑risk addresses, while Coinbase’s exposure is around 5 %.

Government‑held Bitcoin in the United States, United Kingdom and El Salvador shows no public‑key exposure, indicating better security practices at the sovereign level. Experts caution that while there is no immediate exploit, the “harvest‑now, decrypt‑later” scenario means data encrypted today could be exposed once sufficiently powerful quantum computers become available. Stakeholders are urged to adopt quantum‑resistant address formats and improve key‑management to mitigate long‑term vulnerabilities.