Corporate Bitcoin holders could replace developers if quantum threats ignored: Venture capitalist
Venture capitalist Nic Carter warns that Bitcoin developers face potential replacement by institutional investors if they fail to swiftly tackle quantum computing vulnerabilities.
Institutional investors holding substantial Bitcoin positions could reach a breaking point with current Bitcoin developers over their perceived slow response to quantum computing risks, venture capitalist Nic Carter has warned.
During an appearance on the Bits and Bips podcast episode that aired on Thursday, Carter stated: "I think the big institutions that now exist in Bitcoin, they will get fed up, and they will fire the devs and put in new devs."
Carter expressed skepticism about the current development team's willingness to act, stating: "I think the devs will continue to do nothing."
Carter posed a rhetorical question: "If you're BlackRock and you have billions of dollars of client assets in this thing and its problems aren't being addressed, what choice do you have?"
Carter suggests "corporate takeover" scenario could unfold
As of publication, BlackRock, which ranks as the world's largest asset manager, maintains holdings of approximately 761,801 Bitcoin (BTC), representing a value of roughly $50.15 billion. This position accounts for approximately 3.62% of Bitcoin's total supply.
According to Carter, failure by Bitcoin developers to swiftly deploy quantum-resistant cryptographic solutions will result in "a corporate takeover," which he contends will be "a successful one."
Austin Campbell, founder of Zero Knowledge Consulting, expressed agreement with this perspective. Campbell stated: "If there is a structural problem here, and they have a large view, eventually they are going to be required to speak up."
Carter has maintained a high profile regarding quantum computing risks to Bitcoin in recent weeks. On Jan. 21, he asserted that Bitcoin's "mysterious" price underperformance is "due to quantum" and is "the only story that matters this year."
At the time of publication, Bitcoin is valued at $70,281, representing a decline of 26.25% over the past 30 days, based on CoinMarketCap data.
Not all observers share the view that institutional players would seek to exert control over the network. Ram Ahluwahlia, founder of Lumida Wealth Management, characterized major Bitcoin institutions as "passive" investors. "They are not activists," he said.
Crypto industry remains divided on Bitcoin quantum threat timeline
The discussion emerges amid ongoing disagreement within the cryptocurrency industry regarding the immediacy of quantum computing threats to Bitcoin.
Charles Edwards, founder of Capriole Investments, characterizes quantum computing as a possible "existential threat" to Bitcoin, maintaining that an upgrade is required immediately to bolster network security.
In contrast, Christopher Bendiksen, Bitcoin research lead at CoinShares, contended in a post on Friday that only 10,230 Bitcoin out of 1.63 million Bitcoin remain in wallet addresses with publicly visible cryptographic keys that are vulnerable to a quantum computing attack.
Certain prominent Bitcoin advocates, including Strategy executive chairman Michael Saylor and Blockstream CEO Adam Back, maintain the position that quantum threats are exaggerated and will not pose a risk to the network for several decades to come.