Jim Cramer says he will liquidate his entire Bitcoin holdings, expressing concerns that quantum computing could threaten Bitcoin’s security within three years.
46 minutes ago
Former hedge fund manager and CNBC host Jim Cramer said he plans to sell all his Bitcoin holdings over concerns that quantum computing could threaten BTC’s security. His comments stemmed from an interview with IBM Chairman and CEO Arvind Krishna, who warned investors to watch for quantum computing’s challenge to modern cryptography in the next 3 to 4 years. Cramer believes quantum computing could pose a threat to the Bitcoin network around the same timeframe. However, no independent confirmation has been made of how much BTC Cramer holds, or whether he has already completed the sale. Following his remarks, Bitcoin continued trading normally near $63,764, with some market participants once again viewing his comments as a "reverse Cramer" signal. Bitcoin uses the ECDSA signature scheme based on the secp256k1 curve; in theory, a sufficiently powerful quantum computer could use Shor’s algorithm to derive private keys from public keys. The risk is concentrated primarily on addresses with exposed public keys, including reused addresses, early wallet formats, and the short time window after a transaction is broadcast before confirmation. Researchers estimate that roughly 6 million to 7 million BTC, or about 30% of the total supply, fall into this category. Google Quantum AI estimated in March this year that cracking the relevant cryptographic mechanisms could require fewer than 500,000 physical qubits, a roughly 20-fold reduction from prior projections. However, current quantum systems typically only have hundreds to thousands of physical qubits, with far fewer logical qubits that offer higher reliability. Most researchers expect that a quantum computer capable of breaking cryptographic codes will likely not emerge until the 2030s or even the 2040s, making Cramer’s 3-year timeline far earlier than most technical projections.
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