A new report on quantum computing is warning that the crypto industry may be running out of time to protect more than $2 trillion in digital assets from future cyber threats.
The report, called “The State of Quantum” by Quantus, said progress in quantum computing is moving much faster than many crypto companies expected. Researchers believe this could eventually put Bitcoin and other cryptocurrencies at risk if the industry does not prepare in time.
According to the report, the main concern is that powerful quantum computers could one day break the encryption system that protects Bitcoin and most blockchain networks. This system, known as elliptic curve cryptography, has been considered secure for years, but scientists already understand the mathematical process needed to crack it once quantum machines become strong enough.
Researchers pointed to major advances from companies like Google, IBM, and Quantinuum between 2024 and 2026. One of the biggest developments came from Google Quantum AI in March 2026, when researchers suggested that Bitcoin’s encryption could theoretically be broken with fewer than 500,000 physical qubits under certain conditions.
Even though no existing quantum computer can currently break Bitcoin security, the report said the estimated resources needed to do so have dropped sharply in a short time. Quantus explained that several recent research papers reduced the expected quantum power required to attack Bitcoin’s cryptography by almost ten times.
The report also warned that crypto faces a unique problem compared to traditional internet systems. Banks and tech companies can quietly update their security through software patches, but blockchain networks permanently expose public keys on public ledgers. This creates what researchers call a “harvest now, crack later” threat, where attackers can collect blockchain data today and wait until quantum technology becomes powerful enough to break it later.
Another major concern involves lost Bitcoin wallets. Quantus estimated that between 2.3 million and 3.7 million Bitcoin are likely inaccessible because owners lost their private keys, including wallets believed to belong to Bitcoin creator Satoshi Nakamoto. Since these wallets cannot be upgraded to safer addresses, researchers warned they could become easy targets in the future.
Auryn Macmillan, co-founder of Gnosis Guild, said the only practical solution may be setting a final deadline for users to move their funds into quantum-safe accounts. After that deadline, vulnerable wallets could potentially be frozen permanently.
The report also noted that much of the tech industry has already started preparing for the post-quantum era. In 2024, NIST finalized new post-quantum encryption standards, while companies such as Google, Apple, Signal, and Cloudflare have already started rolling out stronger protections.
At the same time, the crypto industry is still debating how to handle the transition. Bitcoin’s migration is considered especially difficult because it would require global coordination and major technical changes without creating new security risks.
Stanford cryptographer Dan Boneh recently warned that moving too quickly could also be dangerous. He said a rushed transition to post-quantum security could create serious software bugs that might be even more harmful than the current quantum threat itself. Still, Boneh believes the industry should slowly move toward stronger cryptographic systems over time.
Hardware wallet companies are also facing challenges. Aaron Chen, CTO of Keystone, explained that many post-quantum encryption systems require much more memory and computing power, which could strain current wallet devices and hurt user experience.
Matt Swayne, chief content officer at Resonance, said many people still underestimate how fast quantum technology is improving.
Quantus concluded that preparing too early may only cause larger transaction sizes and technical inconvenience, but preparing too late could lead to stolen funds, panic in the market, and possible government intervention once quantum attacks become realistic.
