Quantum Proposal Won’t Save Satoshi’s Bitcoin, Says Cardano Founder Hoskinson
TL;DR
Cardano founder Charles Hoskinson claims the new Bitcoin improvement proposal won't protect all Bitcoin from quantum computing threats, leaving 1.7 million coins at risk. The proposal aims to freeze coins not migrated to quantum-resistant addresses, potentially safeguarding over 7 million coins.
Key points
- Charles Hoskinson critiques Bitcoin's quantum proposal
- 1.7 million Bitcoin coins remain at risk
- BIP-361 aims to freeze coins not migrated to secure addresses
- Proposal could protect over 7 million coins valued at $536 billion
- Implementation occurs in three phases over multiple years
Mentioned in this story
Charles Hoskinson
In brief
- Cardano founder Charles Hoskinson says the latest Bitcoin improvement proposal won't be able to save all the Bitcoin vulnerable to quantum computing.
- The proposal would block, then freeze old coins, across three phases before a potential recovery could take place for those that missed deadlines.
- Hoskinson says at least 1.7 million coins, from before 2013, would still be at risk of being stolen.
A new Bitcoin improvement proposal dubbed BIP-361 seeks to save as much as 34% of Bitcoin’s supply—or more than 7 million coins valued at $536 billion—by freezing coins that don’t migrate to quantum-resistant addresses in the future.
But Cardano founder Charles Hoskinson says it will still leave as much as 1.7 million coins, or $127 billion worth of BTC, vulnerable.
The proposal, which would play out over multiple years, is broken into three phases whereby older signature schemes on the network would be phased out. First, inflows to vulnerable addresses would be blocked, then legacy coins would be frozen, with the final phase allowing for the recovery of any Bitcoin held that missed movement deadlines.
“That’s a lie,” Hoskinson said of the final phase, claiming that 1.7 million BTC would not be recoverable under the plan. “It’s not possible.”
“You could recover some of the 8 million Bitcoin, but 1.7 million are not under this scheme,” Hoskinson said. “All of the 2013 Bitcoin and before,” he added, referring to Bitcoin held before the introduction of the key generation of BIP-39, which introduced the seed phrase.
At least 1.1 million of those coins Hoskinson pointed out belong to pseudonymous Bitcoin creator Satoshi Nakomoto, whose purported stash is believed to be worth as much as $82 billion, according to data from Arkham Intelligence.
Nevertheless, Hoskinson said “it’s not a bad proposal.”
“I understand why they wrote it,” he said. “Because if they don’t do this, that money will be stolen in the 2030s. That’s a fact.”
Q&A
How many Bitcoin coins are still vulnerable to quantum computing?
At least 1.7 million Bitcoin coins, valued at approximately $127 billion, remain vulnerable to quantum computing threats.
What is the Bitcoin improvement proposal BIP-361?
BIP-361 is a proposal designed to freeze Bitcoin that doesn't migrate to quantum-resistant addresses, potentially saving over 7 million coins from quantum threats.
What are the phases of the Bitcoin improvement proposal?
The proposal unfolds in three phases: blocking inflows to vulnerable addresses, freezing legacy coins, and allowing recovery for coins that miss migration deadlines.
