Quantum Risk Looms Large Over Bitcoin, Warns Venture Capitalist

A recent warning from a venture capitalist highlights the potential risks of quantum computers to Bitcoin and other financial systems. Andrew Gault, CEO of networking firm ZeroTier and a founding partner of deep-tech firm 7percent Ventures, believes that the industry is focusing on the wrong aspect of the problem.

According to Gault, the biggest risk is not the exposure of wallet keys, but rather the encrypted authentication data being transmitted between institutions. This data includes interbank messages, payment records, and digital signatures, which are being collected by sophisticated adversaries who do not need to read them yet.

The strategy behind this approach is known as 'harvest now, decrypt later,' where encrypted traffic is stored until a powerful enough quantum computer arrives. Google's security team has begun modeling this scenario, with the company targeting 2029 for its post-quantum cryptography migration. Citi has also estimated that a quantum-enabled attack on a single top-five US bank could trigger a $2 trillion to $3.3 trillion cascade across the US economy.