A group of cryptography experts advising Coinbase believes Bitcoin should start preparing for a future transition to quantum-resistant security, even though quantum computers are not yet capable of breaking Bitcoin’s encryption.
In a new report released in June, the advisory board said the Bitcoin community should begin developing tools and migration plans now rather than waiting until quantum computing becomes a real threat.
The report was written by several leading researchers, including Ethereum Foundation researcher Justin Drake. While the authors emphasized that Bitcoin is currently safe, they warned that future advances in quantum computing could eventually create security challenges for the network.
One of the biggest concerns involves Bitcoin stored in older addresses protected by existing cryptographic systems such as ECDSA and Schnorr signatures. Some members of the crypto community believe Bitcoin should eventually set a deadline requiring users to move their coins to quantum-resistant addresses. After that deadline, older signature methods would no longer be accepted, making vulnerable coins inaccessible.
Supporters argue that this approach would prevent future attackers using powerful quantum computers from gaining control of large amounts of Bitcoin and disrupting the market.
However, others strongly disagree. Critics argue that freezing coins that have not been moved would effectively confiscate private property and go against Bitcoin’s core principles of ownership, decentralization, and immutability.
Rather than taking sides, Coinbase’s advisory board said the decision should ultimately be made by the Bitcoin community through its normal consensus process. The researchers deliberately avoided recommending whether vulnerable coins should be frozen, burned, or left untouched.
According to the report, approximately 1.7 million Bitcoin are held in older address types where public keys are already exposed. These coins could face higher risks if powerful quantum computers become available in the future.
Many of these holdings are believed to belong to lost wallets, including Bitcoin that some researchers believe may be owned by Bitcoin creator Satoshi Nakamoto.
The report also referenced research suggesting that as many as 5 million Bitcoin could potentially face some level of future quantum-related exposure because of address reuse. However, many of those coins are still controlled by active users, companies, and institutions.
Several technical solutions are already being explored.
One proposal, called Hourglass, would limit how much Bitcoin from vulnerable addresses could be moved in each block. This could help prevent a sudden flood of recovered coins from entering the market.
Another proposal, known as BIP-361, would allow users to prove ownership of their Bitcoin using quantum-resistant cryptography even after older signature systems are phased out.
Researchers are also studying a system called Post-Quantum Address Commitments (PACTs). This approach would let users reserve future quantum-safe addresses before any migration deadline without immediately moving their funds on-chain.
Although the report does not endorse a specific solution, it delivers two clear messages. First, work on quantum-resistant Bitcoin infrastructure should begin now. Second, users should be educated about potential future risks and given plenty of time and options to move their funds if necessary.
The discussion comes as the cryptocurrency industry increasingly focuses on long-term security challenges while preparing for advances in computing technology that could reshape digital asset security in the decades ahead.
