Most Bitcoin Wallets Not Vulnerable to Quantum Computing Threats, Says Galaxy Digital

The majority of cryptocurrency wallets are not exposed to quantum computing risks, with vulnerabilities limited to specific cases where public keys are revealed, according to Galaxy Digital research analyst Will Owens.

Owens said in a Thursday report that while quantum computers could theoretically derive private keys from public keys — allowing attackers to impersonate owners and steal funds — most wallets remain secure under current conditions.

“In fact, most wallets are not vulnerable today. Funds are at risk only when public keys are exposed on-chain,” Owens stated in the report.

The analyst identified two primary exposure scenarios: wallets whose public keys are already visible on the blockchain, and wallets whose public keys become revealed at the moment of spending. This distinction means that Bitcoin investors using best practices for wallet security face minimal immediate quantum threats.

The quantum computing debate has long divided the cryptocurrency community, with some experts warning of an existential threat while others dismiss concerns as premature. Advanced quantum computers capable of breaking current encryption methods have been theorized to potentially reveal user keys and compromise sensitive data.

However, critics argue the timeline for viable quantum computing remains decades away, and that traditional financial institutions would likely be targeted before cryptocurrency networks. Banks and government systems rely on similar encryption methods that would be equally vulnerable to quantum attacks.

Owens directly addressed claims circulating online that Bitcoin Core developers are “ignoring and gatekeeping” quantum-related proposals, including the soft fork BIP 360. His research found the opposite to be true.

“Contrary to some public criticism, our review found substantial developer work addressing the question of quantum vulnerabilities and mitigations,” Owens said. He noted that the pace of quantum-related proposals has accelerated significantly since late 2025.

“The ecosystem now has a concrete and maturing set of proposals spanning the full problem surface. These proposals are not theoretical. They are being actively developed, reviewed, and debated by some of the most experienced contributors in the Bitcoin ecosystem,” the analyst added.

Other industry participants have proposed various mitigation strategies. Bitcoin analyst Willy Woo suggested in November that holding Bitcoin in a SegWit wallet for several years could help reduce quantum-related risks. SegWit, or Segregated Witness, is a protocol upgrade that changes how data is stored on the Bitcoin blockchain.

Despite progress on technical solutions, Owens warned that governance challenges will likely emerge when implementing any post-quantum security measures. Bitcoin’s decentralized structure means no central authority can mandate software updates.

“Bitcoin has no CEO, no board, and no central authority that can mandate a software update,” Owens explained. However, he argued that the universal nature of the quantum threat creates aligned incentives across the network.

“But the nature of this particular threat — external, technical, and universal in its impact — aligns incentives in a way that past disputes over Bitcoin’s economic direction did not,” he said.

Every participant in the Bitcoin network, including miners, holders and exchanges, has a direct financial interest in maintaining network security. This shared incentive structure could facilitate consensus around quantum-resistant upgrades more easily than previous controversial changes to the protocol.

Past governance disputes in Bitcoin, such as the block size debate that led to the Bitcoin Cash fork in 2017, centered on economic and philosophical differences. The quantum threat presents a different dynamic, as it poses a clear technical risk without partisan divisions.

Owens concluded with reassurance for cryptocurrency investors concerned about quantum computing threats. “For investors, the key takeaway is straightforward: the risk is real but recognized, and the people best positioned to address it are working on it,” he stated.

The Galaxy Digital report comes amid broader discussions about cryptocurrency security in an era of advancing computing technology. While quantum computers remain largely theoretical for cryptographic attacks, the Bitcoin development community appears to be proactively addressing potential vulnerabilities rather than waiting for the threat to materialize.

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