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Concerns about quantum computing are preventing institutions from increasing the allocation of Bitcoin (BTC), said Kevin O’Leary, a Canadian entrepreneur and Shark Tank investor.
This latest statement comes at a time when experts continue to raise the alarm that the impact of the risks of quantum computing is already beginning to appear, although not in the way that many expected.
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Quantum risks prevent institutions from expanding Bitcoin exposure, O’Leary warns
O’Leary described quantum computing as “a new concern that’s trending right now.” According to him, the theoretical risk that a powerful quantum system could eventually compromise blockchain encryption is enough to keep… Big investors are paying attention.
Although he did not suggest that the threat was imminent, O’Leary indicated that the possibility was affecting On allocation decisions capitals today. In his opinion, until the industry provides a clear and reliable solution to address quantum vulnerabilities, it is unlikely to go beyond. Institutional exposure to Bitcoin The range of 3% is appreciable.
“Until this is resolved, do not expect them to go beyond the allocation of 3%. They remain cautious, they remain disciplined, and they will wait for clarity. That is the truth.” He said.
His comments suggest that institutions now see the quantum risks significant enough to justify the defensive position. At the same time, some of them seem to take the potential risks more seriously.
Christopher Wood, global head of equity strategy at Jefferies, removed 10% allocation. for Bitcoin from its typical wallet, citing concerns about quantum computing.
Wood argued that progress in this area would weaken the case for Bitcoin As a reliable store of value especially for investors with a long-term retirement style. This comes at a time when some analysts argue that growing concerns regarding quantum computing are beginning to impact Bitcoin’s valuation.
Willie Wu suggested Recently that quantum worries It could have contributed to Bitcoin breaking its 12-year trend of outperformance over gold. Charles Edwards, founder of Capriole Investments, echoed a similar sentiment.
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He argued that interest in quantum computing increased approximately when Bitcoin rose, prompting investors to reduce exposure to risk, which in turn contributed to the subsequent price decline.
Developers present BIP 360 to see the future of Bitcoin
Amid growing concerns, Bitcoin developers took a procedural step last week by merging the Bitcoin Improvement Proposal 360 (BIP 360) into the official BIP repository on GitHub.
This means that the proposal is now officially listed and could be considered for future Bitcoin updates, even if it has not been approved or planned for implementation.
BIP-360 offers a new type of output called Pay-to-Merkle-Root (P2MR) that reduces the long exposure of public keys by eliminating the expense of the key path in Taproot.
“Push to Merkel Root (P2MR) is a new type of proposed output that adheres to the root of the script tree. It works with almost the same functionality as P2TR (Push to Taproot) outputs, but with the expense of weak quantum paths on the paths removed,” he says. Proposal .
Traditional formats, such as P2PK, expose public keys directly, and P2TR commits to a public key and can reveal it by spending key paths, creating Potentially vulnerable to future quantum attacks . The write-only design of P2MR keeps public keys off-chain until the script is exposed at the next time, reducing this exposure.
