Tether CEO Warns Quantum Computing Could Unlock Inactive Bitcoin Wallets

Tether CEO Paolo Ardoino has warned that quantum computing could eventually pose a threat to inactive Bitcoin wallets, potentially returning lost BTC to circulation.

“Any Bitcoin in lost wallets, including Satoshi (if not alive), will be hacked and put back in circulation,” Ardoino stated in a February 8 post on X .

He reassured the crypto community that Bitcoin cryptography remains secure for now, adding, “Quantum computing is still very far from any meaningful risk of breaking Bitcoin cryptography.”

The Risk to Lost Bitcoin Wallets

Quantum computing is an emerging technology capable of solving complex problems at atomic speeds, which traditional computers cannot handle.

As this technology advances, inactive Bitcoin wallets with no active security measures will become vulnerable, as there is no one to move or protect the funds.

Active Bitcoin wallets, however, will likely adopt quantum-resistant security measures once they become available.

Ardoino explained that Bitcoin holders who are still alive and have access to their wallets will move their funds into new “quantum-resistant addresses.”

The potential of quantum computing unlocking Satoshi Nakamoto’s estimated 1 million BTC has sparked debate.

Crypto trader Crypto Skull told their 140,500 X followers that if Satoshi’s wallets were compromised, it could trigger major market turmoil.

Some experts have even proposed that Satoshi’s Bitcoin should be frozen to prevent possible exploitation.

Bitcoin advocate and billionaire Chamath Palihapitiya echoed Ardoino’s concerns, writing in December 2023 that quantum computing will eventually threaten early cryptographic models.

He urged Bitcoin holders to consider the risk and prepare accordingly.

According to a July 2023 Quantum Grad report, Grover’s search algorithm—one of the most efficient algorithms for retrieving Bitcoin private keys—could theoretically break Bitcoin encryption.

However, researchers believe it would take millions of qubits to develop a fully functional quantum computer capable of executing the attack.

For now, quantum computing remains years—if not decades—away from posing a real threat to Bitcoin security.

Chinese Researchers Reportedly Crack Encryption Algorithms Using Quantum Computer

Last year, Chinese researchers claimed a significant breakthrough in the realm of encryption, stating that they have managed to crack algorithms commonly used in banking and cryptocurrency.

The team, led by Wang Chao from Shanghai University, utilized a quantum computer to breach these encryption methods.

The quantum computer was developed by Canada’s D-Wave Systems, and the attack was carried out using a technique known as quantum annealing.

Although the quantum computer attack did not expose specific passcodes, the researchers believe future developments could uncover more vulnerabilities in current encryption systems.

In response to concerns over the potential threat of quantum computing, Ethereum co-founder Vitalik Buterin has proposed a solution .

He suggested that blockchain networks could mitigate the risk by implementing a hard fork and requiring users to download new wallet software.

In 2017, a group of researchers, including Divesh Aggarwal and Gavin Brennen, published an article warning that the elliptic curve signature scheme used by Bitcoin “could be completely broken by a quantum computer as early as 2027, by the most optimistic estimates.”