Growing Quantum Fears Are Weakening Bitcoin’s Advantage Over Gold, Warns Popular Analyst As Doomsday Debate Explodes ⋆ ZyCrypto

Prominent on-chain analyst Willy Woo cautioned that rising concern about quantum computing risks may be eroding Bitcoin’s long-term valuation narrative, particularly compared with gold.

In a recent post on X, Woo suggested that markets are beginning to factor in the possibility of a future “Q-Day” event — a term used to describe the point at which quantum computers may become powerful enough to break the cryptographic signatures that secure the Bitcoin network.

Woo argued that an estimated 4 million Bitcoins, widely considered lost assets and believed to be inaccessible due to missing private keys, could re-enter circulation if advances in quantum computing compromised exposed public keys. Such a development, he suggested, could challenge elements of Bitcoin’s scarcity thesis.

Is A 4 Million Bitcoin Supply Shock Brewing?

Historically, Bitcoin has far outperformed gold, with value gains of roughly 76 million percent according to ICE charts on TradingView. However, Woo notes that this trend appears to be diverging just as the global long-term debt cycle peaks. While macro investors typically flock to hard assets during periods of debt deleveraging, gold is surging while Bitcoin remains relatively restrained.

Woo attributes the shift to concerns over “Q-Day”.

Quantum computing poses a potential cryptographic crisis, as it could compromise the mathematical security that underpins nearly all digital assets. While classical computers would require trillions of years to brute-force a Bitcoin private key, a sufficiently advanced quantum computer could theoretically derive the key from a public address in minutes, enabling attackers to access and drain wallets at will.

The main concern extends beyond Bitcoin’s network security to a potential massive liquidity shock. Woo highlights that roughly four million “lost” Bitcoins — untouched for years and often held by early adopters, including the premier cryptocurrency’s pseudonymous creator, Satoshi Nakamoto — could become vulnerable to threat actors. 

If quantum computing can access these wallets, the coins could become spendable again. By comparison, total Bitcoin accumulated by enterprises and ETFs since 2020 amounts to 2.8 million BTC. Woo estimates that this potential influx of four million BTC could equal eight years’ worth of institutional accumulation hitting the market all at once.

Quantum Disruption Is Inevitable

Although Bitcoin could adopt quantum-resistant signatures, the pundit contends that this would not address the “lost coin” issue. He assigns a 75% probability that the network will be unable to secure these legacy coins through an emergency hard fork, implying that markets must now factor this risk in.

With Q-Day projected to occur in the next 5 to 15 years, Bitcoin could face persistent uncertainty precisely during the decade when it might serve as a key sovereign hedge. For investors, this implies that while gold benefits from macroeconomic concerns, Bitcoin’s growth potential is constrained by the technological risks inherent in its evolution. 

In other words, until developers and investors establish a unified transition approach, quantum risk will persist—not as an immediate panic, but as a subtle tension that influences market sentiment.