Bitcoin faces no existential threat from quantum computing but will undergo a supply shock when the network upgrades to quantum-resistant encryption, according to Michael Saylor, executive chairman of Strategy. The transition will force a permanent separation between active coins and lost holdings, potentially revealing how much Bitcoin has disappeared from circulation.
What Happened: Quantum Upgrade Thesis
Galaxy Digital head of research Alex Thorn interviewed Saylor this week following Saylor's Dec. 16 post outlining his "Bitcoin Quantum Leap" thesis on X.
Saylor argued that quantum computing will strengthen Bitcoin rather than break it through a coordinated network upgrade that hardens security while reducing available supply.
The upgrade process will follow broader institutional adoption of quantum-resistant encryption standards.
"There's going to be a point when the world will form a consensus that there's a quantum threat," Saylor said. "You won't miss it because the United States government will direct all of the defense contractors to upgrade their encryption algorithms to be quantum resistant."
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Why It Matters: Supply Revelation
Saylor's framework treats the quantum transition as a market-clearing event that will permanently identify lost Bitcoin.
Coins controlled by living holders with access to private keys will migrate to quantum-resistant wallets, while coins from deceased holders or lost keys will remain frozen on the old encryption standard.
"We're going to re-encrypt all the Bitcoin and all the wallets," Saylor said. "It's going to get re-encrypted if the holders of the private keys are alive and if they like money. If they're dead, they're not going to re-encrypt."
The executive dismissed concerns about achieving consensus across Bitcoin's decentralized network.
He expects economic incentives to drive adoption among holders with significant balances, comparing the coordination challenge to global supply chains that converge under pressure despite fragmentation across thousands of entities.
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