Galaxy Digital Warns: Quantum Risk Real, Wallet Vulnerability Varies

Galaxy Digital has issued a warning that quantum computing poses a real threat to Bitcoin investors, though the vulnerability varies significantly across different wallet types.

“Galaxy Digital’s latest report says the risk that quantum computing could compromise Bitcoin is real, but so is the work underway to protect the network”

Bitcoin Magazine

According to Galaxy Digital research analyst Will Owens, sufficiently advanced quantum computers could theoretically derive private keys from public keys, enabling attackers to impersonate owners, forge signatures, and steal coins.

Bitcoin Magazine

However, he emphasized that not all wallets face equal risk, with funds only vulnerable when public keys are exposed on-chain.

This nuanced assessment from Galaxy Digital comes as the crypto industry continues to debate the timeline and severity of quantum threats to Bitcoin's cryptography.

The specific mechanisms of wallet vulnerability to quantum attacks have been identified by Galaxy Digital researchers, who outlined two primary exposure pathways.

Owens explained that wallets become vulnerable either when public keys are already visible on the blockchain or when public keys are revealed at the time of spending.

CoinDesk

This distinction is crucial for understanding which Bitcoin holdings might be at risk.

Analysis from Project Eleven, a security firm focused on quantum risks, suggests that approximately 7 million bitcoin could be potentially vulnerable, though this represents only a fraction of the total Bitcoin supply.

Galaxy Digital emphasizes that most bitcoin holdings today are not immediately threatened by quantum computing advances.

Despite the real quantum risks identified, Galaxy Digital researchers push back against narratives suggesting Bitcoin is unprepared or that investors should avoid exposure due to quantum threats.

“The quantum risk to Bitcoin investors is real, but not all wallets are vulnerable, and the people best positioned to address it are working on it, says Galaxy Digital research analyst Will Owens”

Cointelegraph

Alex Thorn, head of research at Galaxy Digital, argues that framing quantum computing as an imminent or uniquely Bitcoin-specific crisis misses critical context about both the technology and the work already underway.

He contends that the risk is real but recognized, and that the people best positioned to solve it are actively working on solutions.

This perspective challenges critics who claim the threat is overblown because quantum technology is still decades away from being viable and that traditional financial systems will be compromised long before Bitcoin's cryptography.

Bitcoin developers are actively addressing quantum vulnerabilities despite some public criticism suggesting otherwise, according to Galaxy Digital's research findings.

Will Owens stated that contrary to claims of Bitcoin Core developers 'ignoring and gatekeeping' quantum-related proposals, the 'pace of proposals has accelerated meaningfully since late 2025.'

TradingView

Galaxy Digital's review found substantial developer work addressing quantum vulnerabilities and mitigations, with the ecosystem now having 'a concrete and maturing set of proposals spanning the full problem surface.'

These solutions include quantum-resistant addresses and phased upgrade proposals that could protect Bitcoin from future quantum computational advances without disrupting the current network security.

Galaxy Digital advises investors to take a measured approach to quantum risk, viewing it as a long-term technical challenge rather than an immediate threat to Bitcoin's viability.

“Galaxy Digital’s latest report says the risk that quantum computing could compromise Bitcoin is real, but so is the work underway to protect the network”

Bitcoin Magazine

According to Alex Thorn, investors should not mistake a long-term challenge for an immediate threat, as the quantum computing threat to Bitcoin is real but far from an existential crisis.

Bitcoin Magazine

The firm's research suggests that while quantum computing represents a fundamental change in computational approach using qubits and superposition, the timeline for viable quantum computers capable of breaking Bitcoin's cryptography remains uncertain.

This perspective allows investors to maintain confidence in Bitcoin's security while acknowledging the need for ongoing cryptographic innovation to address future technological advances.