Hoskinson says Bitcoin quantum-threat proposal would not protect all pre-2013 BTC from quantum risks

Cardano founder Charles Hoskinson said a new Bitcoin improvement proposal, BIP-361, would not be able to protect all Bitcoin that could become vulnerable to quantum computing. He estimated that at least 1.7 million coins—worth about $127 billion—would still be at risk of being stolen.

BIP-361 aims to freeze non-migrated coins

BIP-361 is designed to save as much as 34% of Bitcoin’s supply, or more than 7 million coins valued at $536 billion, by freezing coins that do not migrate to quantum-resistant addresses. Hoskinson said the plan would unfold over multiple years and be implemented in three phases as older signature schemes are phased out.

Three-phase timeline

According to the proposal’s structure described in the article, the process would proceed in three stages:

• Phase 1: Block inflows to vulnerable addresses.
• Phase 2: Freeze legacy coins.
• Phase 3: Allow recovery for Bitcoin holders who moved their coins before specified deadlines.

Hoskinson disputes the recovery claim

Hoskinson criticized the final phase, calling it “a lie” and saying it would not allow recovery of 1.7 million BTC under the plan. He argued that while some of the roughly 8 million Bitcoin targeted by the proposal could be recoverable, 1.7 million would not be covered by the scheme.

He further said the affected holdings include Bitcoin from 2013 and earlier, referencing the introduction of BIP-39’s key generation and seed phrase.

Potential exposure and related estimates

Hoskinson said at least 1.1 million of the at-risk coins he identified are believed to belong to pseudonymous Bitcoin creator Satoshi Nakamoto. The article cited Arkham Intelligence data suggesting Nakamoto’s purported stash could be worth as much as $82 billion.

Quantum threat context and broader debate

The comments come as “Q-Day”—the point at which quantum computers could break Bitcoin’s cryptography—remains a growing focus. The article noted that in March, Google issued a 2029 deadline for transitioning its infrastructure to post-quantum cryptography, which it described as a sign the quantum threat may be approaching faster than previously expected.

Hoskinson on governance and innovation

While Hoskinson said he understands why BIP-361 was written, he criticized what he described as reluctance within the Bitcoin community to innovate or adopt features used by other blockchain ecosystems. He argued that on-chain governance could help address the issue, pointing to Cardano, Polkadot, and Tezos as examples.

He also made a facetious remark that “we’re shitcoiners” and that “only you guys have good ideas,” in reference to the Bitcoin community.