Jefferies’ Drops Bitcoin Over Quantum Computing Threat, Turns to Gold

In his latest Greed & Fear note on Friday, Jefferies’ Christopher Wood raised fresh concerns, saying the emergence of quantum computing could one day put Bitcoin’s entire system at risk, prompting Wood to exit his BTC allocation, shifting funds to gold and silver.

Wood does not believe the quantum issue will significantly affect BTC prices in the near term.

However, he believes that the “store of value” concept is clearly on a less solid foundation from the view of a long-term portfolio.

Bitcoin’s security is based on cryptographic algorithms, which are secure against conventional computing power. However, quantum computers could easily reverse engineer private keys from public ones, threatening the system’s integrity.

The potential for quantum computers to compromise Bitcoin’s security has intensified in recent months. Experts believe a working quantum computer could arrive in just a few years.

Jefferies Drops Bitcoin Allocation For Safe-Haven Assets

Wood, Jefferies’ global equity strategist, has removed a 10% Bitcoin allocation from his model portfolio, Bloomberg reported. Wood cited the risk that quantum computing could undermine BTC’s cryptographic security as the reason to shift focus to traditional safe-haven assets.

Wood is reallocating the Bitcoin portion equally to gold and gold-mining stocks. This represents a complete reversal of his earlier bullish stance on Bitcoin.

The reallocation is based on long-term security concerns rather than short-term performance metrics.

Wood’s move has been interpreted as a signal to other institutional investors. Bitcoin has been a major component of long-term investment strategies for some years.

This shift suggests growing skepticism about its viability as a store of value.

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