Worried about Bitcoin's quantum threat! Jefferies executive switches BTC allocation to gold, returning from digital to physical

Jeffries Strategy Chief Withdraws 10% Bitcoin to Invest in Gold, Citing Quantum Computing Risks, Bringing “Digital Gold” Long-term Safety into Mainstream Asset Allocation Debate for the First Time.

From “Digital Gold” Back to “Physical Gold,” Jeffries’ Shocking Decision

Investment bank Jefferies’ Global Equity Strategy Head Christopher Wood recently made a shocking move in the financial markets.

According to Bloomberg, Wood revealed in his highly influential “Greed & Fear” weekly report that he has officially removed the 10% allocation of Bitcoin ($BTC) from his simulated portfolio and redirected all this capital into the gold industry.

Image source: moneycontrol Jefferies’ Global Equity Strategy Head Christopher Wood officially removes 10% Bitcoin allocation from his simulated portfolio

Specifically, this 10% vacancy has been redistributed to 5% physical gold and 5% gold mining stocks. Wood pointed out that this decision is not because he is bearish on Bitcoin’s short-term prospects, but due to deep concerns over the rapid advancement of quantum computing technology. He believes that this potential technological breakthrough could shake the foundation of Bitcoin as a long-term store of value within a few years.

Looking back over the past few years, Wood has been one of Wall Street’s most prominent institutional supporters of Bitcoin. He first included Bitcoin in his simulated portfolio in December 2020, amid concerns over currency devaluation caused by large-scale quantitative easing by governments worldwide during the pandemic. Subsequently, in 2021, Wood increased his Bitcoin weight to 10% and has long advocated that Bitcoin is an alternative hedge asset for the younger generation that can replace gold.

Since his initial purchase, Bitcoin’s price has risen approximately 325%, outperforming gold, which increased about 145% over the same period. However, as the development of quantum computers seems to have shortened from a “decade away” to “within a few years,” this experienced strategist has chosen to revert to traditional safe-haven assets with thousands of years of proven history, emphasizing that in an increasingly turbulent technological and geopolitical environment, gold’s hedging properties become more attractive.

Shadow of Quantum Hegemony: Why Does Encryption Face a “Survival Crisis”?

The threat of quantum computers to blockchain security is not unfounded; it fundamentally involves a leap in computational logic. Wood explains in his report that traditional computers use bits for calculations, where the state is either 0 or 1; whereas quantum computers use quantum bits (Qubits), leveraging quantum mechanics’ “superposition” and “entanglement” properties, allowing qubits to exist in multiple states simultaneously.

This characteristic enables quantum computers to exponentially increase their computational power when solving complex mathematical problems. For example, 2 qubits can represent 4 values simultaneously, 3 qubits can represent 8, and so on. This terrifying explosion of computing power is the root of the threat to Bitcoin’s cryptography.

Currently, Bitcoin relies on cryptography to ensure wallet security, authorize transactions, and manage mining processes. For supercomputers today, cracking these encryption protocols is nearly impossible. However, theoretically, quantum computers could derive private keys (Private Key) from publicly available keys (Public Key).

Once private keys are compromised, attackers could transfer funds arbitrarily without the owner’s authorization. Wood believes that any credible threat to Bitcoin’s cryptographic foundation would destroy its logic as a digital asset and even challenge its status as “digital gold,” because it directly threatens Bitcoin’s existence as a store of value.

Up to 6.5 million Bitcoins at Risk? Institutional Investors’ Long-term Concerns

Although many developers believe the quantum threat is still distant, internal quantitative research within institutions has begun to sound alarms. According to Coinbase’s Global Investment Research Head David Duong, approximately 32.7% of circulating Bitcoin—about 6.51 million coins—may be vulnerable to quantum attacks.

These risks mainly focus on early wallets, address reuse, and assets whose public keys have been exposed on the blockchain. Some extreme estimates even suggest that if powerful quantum computers emerge, the proportion at risk could reach 20% to 50%. These “Satoshi-era” early tokens, including the roughly 1.1 million Bitcoins held by Satoshi Nakamoto himself, are considered primary targets for long-distance quantum attacks.

Nic Carter, a partner at Castle Island Ventures, criticized that some Bitcoin developers are in “denial” about this threat, and this unwillingness to face quantum risks has already begun to depress Bitcoin’s price.

Image source: X/@nic_carter Castle Island Ventures partner Nic Carter criticizes that some Bitcoin developers’ reluctance to acknowledge quantum risks has already started to depress Bitcoin’s price

Wood points out that for long-term capital investors managing retirement funds, if an asset’s security is in doubt within 5 to 10 years, its case as a “long-term store” becomes less solid. Although the market generally expects Bitcoin to potentially hit a new all-time high by 2026, and anticipates the issuance of the 20 millionth Bitcoin around March 2026, the uncertainties surrounding quantum technology are prompting decision-makers like Wood to reassess risk margins.

Developer vs. Market: Can Bitcoin Survive in the Quantum Era?

In response to Wood’s divestment, opinions within the crypto community remain divided. Notable developers like Blockstream CEO Adam Back have countered that it will take at least 20 to 40 years for quantum computers to crack current signature mechanisms, giving the network enough time to transition to post-quantum cryptography.

Image source: X/@adam3us Blockstream CEO Adam Back posted that it will take at least 20 to 40 years for quantum computers to crack current signature mechanisms

Additionally, senior developer Jameson Lopp stated that migrating from existing protocols to new formats could take 5 to 10 years, and Bitcoin is unlikely to crash in the short term. Currently, related security solutions are beginning to attract capital attention; for example, the startup Project Eleven recently raised $20 million to develop quantum-resistant tools and migration testing schemes for blockchain.

Image source: X/@lopp Senior developer Jameson Lopp states that Bitcoin will not crash in the short term

Despite ongoing technological efforts, the psychological defenses of investors are already showing cracks. Wood’s actions reflect the cautious attitude of traditional Wall Street factions when facing frontier technological risks; he prefers assets that have withstood centuries of testing.

Just this month, as he completed his asset reallocation, gold prices surged amid geopolitical tensions and Federal Reserve rate cut expectations, briefly surpassing $4,600 per ounce for the first time in history. This contest between “digital gold” and “physical gold” is no longer solely about returns but about who can truly preserve investors’ wealth in the future quantum computing era. The debate over blockchain’s long-term security has officially moved from academic discussion into a core issue of mainstream financial allocation.