VanEck CEO Says Bitcoin Faces Quantum Computing Threat As Privacy Maxis Turn To Zcash
VanEck CEO Jan van Eck warned that Bitcoin could be vulnerable to advances in quantum computing and warned that privacy-focused investors are already turning to Zcash (ZEC) for more anonymity.
“The Bitcoin community has been asking itself: Is there enough encryption in Bitcoin?” he said during an appearance on CNBC’s “Power Lunch.” ”Because quantum computing is coming.”
VanEck Could Walk Away From Bitcoin
He added that his firm “will walk away from Bitcoin if we think the thesis is fundamentally broken.”
“We don’t right now,” he added, ”but you always have to look at the underlying technology and the crypto.”
The CEO didn’t define what he meant by the thesis becoming broken, but his comments suggest it refers to Bitcoin’s long-term viability, including the strength of its cryptography and the network’s readiness for advances in quantum computing.
VanEck is one of the largest crypto asset managers in the world, and has launched multiple Bitcoin products, including a spot BTC ETF (exchange-traded fund) that has attracted more than $1.2 billion in inflows since its debut in early 2024.
Bitcoin Maxis Are Turning To Zcash
Van Eck said privacy-focused Bitcoin “OGs or maxis” have shifted focus to Zcash (ZEC) in the search for greater anonymity, a thesis supported by the token’s parabolic 1,221% explosion in the past three months.
ZEC price (Source: CoinGecko)
Van Eck said that ZEC “is sort of related to Bitcoin with a lot more privacy” and argued that Bitcoin’s transparent ledger can clash with growing expectations of transaction confidentiality.
“When you move money around on the Bitcoin blockchain, you can see it,” he said.
Vitalik Buterin Also Concerned With Quantum Threat
Leading crypto industry voices have echoed van Eck’s concerns about a quantum threat. Among them is Ethereum co-creator Vitalik Buterin, who said during a Nov. 17 presentation at the Devconnect conference in Argentina that quantum computing could threaten elliptic curve cryptography.
A few days earlier, quantum computing researcher Scott Aaronson said in a blog post that “given the current staggering rate of hardware progress,” it is “a live possibility” that a fault-tolerant quantum computer capable of running Shor’s algorithm could be built before the US presidential election in 2028.”
Not everyone agrees with van Eck’s comments. JAN3 CEO Samson Mow rejected the idea that Bitcoin OGs are turning to privacy alternatives.
“You wouldn’t be able to point out a Bitcoin Maxi even if they were standing in front of you,” he said in reply to van Eck’s remarks. “You shouldn’t be speaking on anything Bitcoin whatsoever.”
Related Articles:
About Author
About Author
