Quantum Computing Fears Push Veteran Strategist to Drop Bitcoin for Gold

Quantum computing concerns drive a major strategist to exit Bitcoin and favor gold amid rising long-term security and policy risks.

Long-term investors are beginning to question whether Bitcoin can remain secure in a future shaped by new computing power. A senior market strategist has now dropped the cryptocurrency from his model portfolio. He pointed to rising concerns that quantum technology could challenge Bitcoin’s core security. 

Crypto Allocation Cut as Quantum Computing Timeline Moves Closer

Christopher Wood, global head of equity strategy at Jefferies, has removed Bitcoin from his model portfolio. Wood previously held a 10% allocation to the cryptocurrency but said growing concerns around quantum computing prompted the change. 

In the latest issue of his “Greed & Fear” newsletter, he said faster progress in quantum computing could weaken Bitcoin’s role as a store of value. He added that this risk matters most for pension-style and long-term investors.

Quantum computing has long been viewed as a distant risk. However, that assumption is now being questioned. Wood wrote that developments in the space may be “only a few years away rather than a decade or more.” And this view has raised doubts about whether current cryptographic protections will remain effective.

Gold Replaces Bitcoin in Portfolio as Cryptography Concerns Grow

Bitcoin relies on cryptography to secure wallets, approve transactions, and manage mining. With today’s computers, breaking that system is not realistic. Quantum computers, however, could potentially reverse-engineer private keys from public ones. 

And this could give attackers a path to move funds without permission. Mining itself also relies on cryptographic rules, meaning any breach could threaten the network’s foundation.

Wood described such a scenario as potentially existential for Bitcoin, as it would damage the idea of the asset as a digital form of gold. That concern led him to refocus his portfolio on assets with longer track records.

As part of the reallocation, Wood replaced Bitcoin with exposure to precious metals and mining stocks:

• Removed the full 10% Bitcoin position from the model portfolio.
• Added a 5% allocation to physical gold.
• Added a 5% allocation to gold-mining equities.
• Cited gold’s long history as a store of value.
• Pointed to rising geopolitical and technological uncertainty.

Wood was not always cautious about Bitcoin, having added the asset to his portfolio in December 2020. Interestingly, this period was marked by heavy stimulus spending and fears of currency debasement. Exposure was increased in 2021 as institutional interest grew. The latest move marks a clear change in stance.

Bitcoin Slides as Security Debate and Policy Setback Weigh on Market

Debate over quantum computing risk intensified after Bitcoin’s sharp drop on Oct. 10 last year. Some developers and investors argue the threat is being overstated. Nic Carter of Castle Island Ventures wrote on X that Bitcoin developers were downplaying the issue. But long-time Bitcoin supporters, including Adam Back of Blockstream, rejected that view.

Despite disagreement within the crypto community, Wood believes the discussion itself favors gold. He described the metal as a proven hedge during periods of global stress, while noting that technological uncertainty only strengthens its appeal.

Bitcoin has often been marketed as a digital alternative to gold, with companies such as Strategy and Tesla adding it to their balance sheets. Still, critics continue to point to volatility and emerging risks.

Market pressure returned this week, with Bitcoin falling below $96,000 during U.S. trading hours. The pullback followed a stalled rally and came after the Senate Banking Committee canceled a planned crypto market structure markup, shortly after Coinbase withdrew its support.

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