BlackRock Raises Alarm on Quantum Computing Threat to Bitcoin
In a significant move, BlackRock has added a new risk disclosure to its iShares Bitcoin Trust (IBIT) filing, warning that advancements in quantum computing could potentially compromise Bitcoin’s cryptographic security. The update, made in early May 2025, marks the first time the world’s largest asset manager has directly addressed this threat in a Bitcoin-related disclosure.
The filing specifically notes that sufficiently advanced quantum technology could “undermine the viability” of cryptographic algorithms used not only in digital assets but across the global tech stack. This warning signals that institutional investors like BlackRock are taking the potential risks seriously as they develop long-term crypto strategies.
How Quantum Computing Poses a Risk to Bitcoin
Bitcoin’s security relies on cryptographic systems like SHA-256 and ECDSA, which have worked flawlessly for years. However, powerful quantum computers could potentially reverse-engineer private keys from public addresses, especially during transaction processing before blockchain confirmation. While researchers believe it’s at least 10-20 years before quantum machines can achieve this, the crypto community is already working on post-quantum cryptography.
Industry Response to Quantum Threat
Developers are proposing solutions like the Quantum-Resistant Address Migration Protocol (QRAMP) to move coins to quantum-safe algorithms. Some blockchains, such as Algorand and Quantum Resistant Ledger (QRL), are already implementing post-quantum cryptography. However, transitioning to quantum-safe algorithms comes with technical challenges and trade-offs, requiring careful planning and coordination across the industry.
Preparing for a Post-Quantum Future
To address this future threat, developers are testing quantum-resistant algorithms, while businesses need to future-proof their infrastructure and educate users. Regulatory bodies, like the US National Institute of Standards and Technology (NIST), have begun establishing post-quantum cryptographic standards. The industry requires clear guidelines and support for implementing these new standards without stifling innovation.
BlackRock’s warning has brought attention to a risk that, while not immediate, requires proactive measures. The transition to quantum-resistant cryptography will be complex and gradual, but necessary to ensure the long-term security of cryptocurrencies like Bitcoin.
