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Welcome to the US Cryptocurrency News Morning Briefing – your essential summary of the most important developments in the cryptocurrency world for the day ahead.
Grab a coffee – because it’s not about price charts, ETF flows, or the narrative of the next half. It’s about something much more disturbing: whether Bitcoin, as it exists today, is built to last.
Today’s Cryptocurrency News: Why One of Wall Street’s Biggest Bitcoin Exciters Is Pulling Back
A quiet but very impactful change has occurred in institutional thinking about cryptocurrencies. Christopher Wood, head of global equity strategy at Jefferies and one of the most followed market strategists on Wall Street, has completely removed Bitcoin from his main model portfolio.
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The Jefferies executive did not mention price fluctuations, but rather cited doubts about the asset’s long-term durability.
Wood reduced the allocation of 10% of Bitcoin from the Jefferies model portfolio and reallocated it equally to … The body gold And gold mining stocks.
The decision was explained in the last edition of its bulletin News “Greed and fear ,” as Wood pointed out the long-term threat from the advance Quantum computing is based on Bitcoin’s theory of security and value storage .
“The previously distant threat of quantum computing has prompted one of the market’s most followed strategists to withdraw from Bitcoin,” reported Bloomberg, citing Wood in the newsletter, highlighted how there is a theoretical risk that is now entering mainstream portfolio construction.
Wood was an early institutional supporter of Bitcoin It added the asset to its model portfolio in December 2020 In the midst of the pandemic stimulus and fear of currency devaluation.
Later he raised the exposure to 10% in 2021. It should be noted that Bitcoin has since reached by about 325% from the initial allocation compared to the increase of 145% of gold. However, Wood says performance is no longer the goal.
In his view, quantum computing weakens the argument that Bitcoin can serve as a reliable store of value for many decades, especially for long-term retirement style investors.
“There is growing concern in the Bitcoin community that quantum computing may only be a few years away instead of a decade or more,” Wood wrote.
In fact, Bitcoin’s security relies on cryptographic systems that make it virtually impossible for current computers to derive private keys from public keys.
However, cryptographic quantum computers (CRQC) can destroy this asymmetry. This could allow attackers to reverse engineer private keys within hours or days.
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Quantum risk, governance and institutional rethinking of Bitcoin
This debate reveals the widening gap between the capitalists and the developers. Carter, a partner at Castle Island Ventures, understood this tension in a December post.
However, governance is the root of the problem. Proposed solutions, including burning or imposing quantum-prone coins Moving on to post-quantum cryptographythey raise uncomfortable questions about property rights and rule changes.
Jefferies noted that, while Bitcoin has been subject to disruptions before, confiscating or invalidating the coins could undermine the principles that give the credibility of the network.
Jeffries also noted that a significant portion of Bitcoin’s supply could be vulnerable in a quantum scenario. These include:
- Collections from the era of Satoshi Stored in public key payment addresses (P2PK).
- lost coins, and
- Addresses reused in multiple transactions
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In all, this could be millions of bitcoins.
Recent analyzes have confirmed this From Coinbase some of these concerns. Quantum computing presents long-term risks beyond the security of private keys, which could impact Bitcoin’s economic and security models, said David Dong, head of investment research at Coinbase.
While emphasizing that current quantum technology is far from breaking Bitcoin today, Dong warned that about 6.5 million Bitcoins could be vulnerable to quantum attacks in the long run. This makes the migration to post-quantum cryptography necessary, even if it is still years away.
Meanwhile, Wood points out that the long-term questions from quantum computing are only positive in the long-term for gold. This position is based on the history of gold as a proven medium without technological and governance uncertainty.
This transition represents a broader shift in institutional thinking. CyberCapital founder and CTO Justin Pons claims that Bitcoin could collapse at any time after 2033. However, Pons points to the decrease in support for miners after the split and lower transaction fees.
According to Justin Bones, 51% attacks can be profitable at a daily cost of less than $3 million, which could enable double spending on multi-billion dollar exchanges. All these Fears Bitcoin security comparison.
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Today’s map
Alpha is a byte size
Here’s a roundup of more US cryptocurrency news to follow today:
Overview of Pre-Market Cryptocurrency Stocks
| Company | Closed until January 15th | Early market overview |
| Strategy (MSTR) | $170.91 | 172.74 (+1.07%) |
| Coinbase (COIN) | $239.28 | $241.38 (+0.88%) |
| Galaxy Digital Holdings (GLXY) | $31.99 | $32.21 (+0.69%) |
| Mara Holdings (MARA) | $10.66 | $10.74 (+0.75%) |
| RIOT Platforms | $16.57 | $16.76 (+1.15%) |
| Basic Sciences (CORZ) | $18.08 | $18.25 (+0.94%) |
