Jefferies’ ‘Greed & Fear’ strategist cuts Bitcoin allocation to zero on quantum risk

Investment slope Jefferies’ longtime “Greed & Fear” strategist Christopher Wood has reportedly dropped Bitcoin wholly from his flagship exemplary portfolio, citing mounting concerns that advances successful quantum computing could undermine the cryptocurrency’s semipermanent security.

According to a report by Bloomberg, successful the latest variation of his Greed & Fear newsletter, Wood said the 10% Bitcoin (BTC) allocation helium archetypal added successful precocious 2020 has been replaced by a divided presumption successful carnal golden and golden mining stocks.

He argued that quantum breakthroughs would weaken Bitcoin’s assertion to beryllium a dependable store of worth for pension‑style investors.

​Wood added that concern implicit quantum risk is rising among long-term, organization investors, informing that immoderate superior allocators present question Bitcoin’s store of worth lawsuit if quantum timelines compress. 

He said helium feared that “cryptographically relevant” machines arriving sooner than expected could fto attackers deduce private keys from exposed nationalist keys, weakening the cryptography underpinning Bitcoin balances and mining rewards and, successful the extreme, challenging its relation arsenic “digital gold” for pension‑style portfolios.

​Quantum hazard enters mainstream portfolios

The quantum contented has been discussed for years among developers and commentators, but Wood’s determination shows however it’s present influencing mainstream plus allocation decisions astatine large brokerage and probe houses. 

Related: Ethereum indispensable walk ‘walkaway test’ to endure for 100 years: Buterin

Castle Island Ventures spouse and Bitcoin advocator Nic Carter has discussed the quantum contented astatine length, informing successful December that “capital is acrophobic and looking for a solution” connected quantum risk, adjacent though galore developers, specified arsenic Blockstream CEO Adam Back, stay skeptical that it is simply a near‑term problem.

Investors are acrophobic astir quantum computing. Source: Nic Carter

Macro expert Luke Gromen has besides turned cautious connected Bitcoin successful caller months, citing macro and technological uncertainties, including quantum computing risk, arsenic reasons to favour expanding golden vulnerability versus BTC connected a multi‑cycle view. 

Studies from firms specified arsenic EY and PwC likewise emblem quantum computing arsenic a important emerging menace to accepted nationalist cardinal cryptography, informing that fiscal systems, including those supporting integer assets, request to hole migration paths to quantum-resistant alternatives.

Magazine: Kevin O’Leary says quantum attacking Bitcoin would beryllium a discarded of time

Developers accidental Bitcoin has clip to adapt

Bitcoin developers and halfway infrastructure builders propulsion backmost connected the thought that quantum advancement is an contiguous threat. 

Blockstream CEO Adam Back has repeatedly argued that breaking Bitcoin’s existent signature schemes is apt 20–40 years distant and that the web would person ample clip to migrate to post‑quantum signature algorithms and amended cardinal absorption practices good earlier immoderate real‑world interruption becomes feasible. 

Other analysts, including an a16z researcher, likewise conclude that the probability of a “cryptographically relevant” quantum machine susceptible of breaking today’s nationalist cardinal systems emerging this decennary is low.

They accidental that the bigger near‑term risks travel from implementation bugs, governance, and “harvest now, decrypt later” attacks connected encrypted information alternatively than contiguous attacks connected unrecorded blockchain signatures.