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Bitcoin News Update: Zcash's Quantum-Proof Advantage Draws Institutional Interest Amid Bitcoin's Waning Security

Bitcoin News Update: Zcash's Quantum-Proof Advantage Draws Institutional Interest Amid Bitcoin's Waning Security

Bitget-RWA2025/11/24 16:48
By:Bitget-RWA

- VanEck CEO warns firm will exit Bitcoin if quantum computing breaks its encryption, citing security risks to private keys and funds. - Zcash emerges as quantum-resistant alternative with "quantum recoverability" upgrades, attracting 1,486% price surge since August 2025. - Bitcoin faces governance challenges in rapid upgrades, with 25% of its supply already vulnerable to quantum attacks via exposed keys. - Industry splits on timeline: experts like Buterin warn of 2028 quantum threats, while others argue d

Jan van Eck, the CEO of VanEck, has delivered a serious caution that his company will exit

holdings if the digital asset’s cryptography is found lacking in the face of new quantum computing dangers. Speaking in a recent CNBC appearance, van Eck highlighted mounting institutional worries about Bitcoin’s ability to remain secure and private over the long term, stating, “we will leave Bitcoin if we determine its core premise no longer holds,” . Managing more than $1.2 billion in Bitcoin through its spot ETF, VanEck pointed out that the risks posed by quantum computing and issues around transparency have become central topics of debate within the crypto sector .

The CEO’s statements reflect a wider industry focus on the cryptographic underpinnings of Bitcoin. Should quantum computers reach sufficient capability, they could potentially crack the elliptic curve cryptography that protects Bitcoin transactions, exposing private keys and making theft possible.

co-founder Vitalik Buterin has recently cautioned that quantum computers able to run Shor’s algorithm could appear as soon as 2028, while as a “real possibility” before the next U.S. presidential election. , a cryptocurrency focused on privacy, has been gaining attention as an alternative for Bitcoin investors worried about quantum risks. VanEck noted that “early Bitcoin adopters” are increasingly investigating Zcash, which employs zero-knowledge proofs to conceal transaction information .

Developers behind Zcash have taken steps to counter quantum threats with a method called “quantum recoverability.” This mechanism would let the network pause and upgrade if quantum computers become strong enough to compromise current encryption, ensuring users can still access their assets during the transition

. Zcash engineer Sean Bowe mentioned that, although the network is not yet resistant to quantum attacks, most of the protocol changes for quantum recoverability are finished, and wallet updates are anticipated by 2026 . In contrast, Bitcoin’s decentralized governance could make swift upgrades more difficult, raising doubts about its readiness to address quantum threats before they arise.

Market trends show the increasing urgency of these concerns. Zcash (ZEC) has jumped 1,486% in the past three months, reaching $565 as of November 24, 2025, fueled by growing interest in privacy and quantum resistance

. Meanwhile, Bitcoin’s value has dropped over 30% from its October high, with van Eck attributing the decline to factors such as quantum worries and the upcoming 2026 halving event . Research from Deloitte also reveals that a quarter of all Bitcoin is already at risk from quantum attacks due to public keys exposed in older address types .

This ongoing discussion highlights a deeper conflict between Bitcoin’s open ledger and the increasing demand for privacy. VanEck argued that the public nature of Bitcoin transactions is at odds with changing user expectations, further boosting interest in alternatives like Zcash

. Still, some industry leaders, such as Blockstream CEO Adam Back, believe that quantum threats are still decades away, and that post-quantum encryption solutions are already available for gradual adoption .

With quantum computing progressing rapidly, the cryptocurrency sector is approaching a pivotal moment. While Zcash’s forward-thinking approach has drawn institutional interest, Bitcoin’s ability to coordinate swift, network-wide upgrades remains in question. VanEck’s warning suggests that major industry players now see quantum risks as a pressing issue that demands immediate action, rather than a distant possibility.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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