Strategy plans to launch a Bitcoin security program aimed at addressing threats posed by quantum computing and other future security vulnerabilities, Executive Chairman Michael Saylor said during the company’s earnings conference call Thursday.
According to Saylor, the program will work with “the global cybersecurity community, the global crypto security community, and the Global Bitcoin Security Committee” to help coordinate research and responses to these emerging risks.
“We think it’s reasonable and appropriate for us to do this, given our great responsibility as a holder of Bitcoin. But we want to do it very responsibly. And we want to make sure that we coordinate with the global cybercrypto and Bitcoin security community, because there are a lot of very, very bright minds here,” Saylor said. “A lot of good work is being done. And it is likely that consensus will be formed and solutions will be found at the right time and in a responsible manner.”
Vulnerabilities in Bitcoin’s Elliptic Curve Digital Signature Algorithm (ECDSA) are likely to be compromised by Shor’s algorithm as quantum computing advances.
Research estimates suggest that approximately 25% of Bitcoin’s supply is currently vulnerable; these “at risk” assets are mainly made up of old P2PK addresses and reused addresses whose public key has already been revealed on the blockchain.
Addressing concerns about quantum computing, Saylor dismissed them as the latest in a long history of “FUD” that Bitcoin has repeatedly overcome. He argued that while these risks should be taken seriously, investors should not panic or rush into premature technical changes that could create new vulnerabilities.
“We think it will probably be 10 years or more before a threat emerges. That’s the consensus. It’s a promising technology, but it’s still in its infancy,” Saylor said, adding that many global communities are working on quantum-resistant protocols.
“If Bitcoin requires an upgrade, there will be global consensus. Currently, there is no global consensus that existing crypto libraries are at risk,” he noted. “You have to be very careful about managing those risks. And you have to address them at the right time, not too early, not too late. Because too early, you probably won’t have the right technology and you’ll over-insure too late. You’re taking on risks you shouldn’t.”
“Bitcoin will be stronger if and when this quantum upgrade happens. And so Bitcoin is scalable. And Bitcoin can be upgraded to become stronger,” he pointed out.
Some analysts warn that quantum-enabled computers could emerge between 2027 and 2030, and the crypto ecosystem has begun to address these concerns, including proposals from developers such as BIP 360 designed to implement quantum resistance features in Bitcoin.
Perceived risks have prompted some investors to take defensive positions. Jefferies analyst Christopher Wood removed Bitcoin from his portfolio, citing quantum threats.
