Cardano’s Founder Warns: Bitcoin Quantum Plan Won’t Save ALL BTC

Tension around future security risks in Bitcoin has taken a new turn after a proposal designed to protect the network raised fresh concerns. A plan meant to defend BTC from quantum computing threats now faces criticism that it could leave a large portion of coins permanently out of reach.

The debate centers on Bitcoin Improvement Proposal 361, also known as BIP 361. The idea behind it sounds simple on the surface. Developers want to protect older Bitcoin addresses that could become vulnerable if quantum computing advances far enough to break current cryptographic standards. The plan suggests forcing a migration to safer address formats and freezing those that fail to upgrade.

BIP 361 focuses on coins stored in older wallet formats where public keys have already been exposed. These wallets face higher theoretical risk if quantum computers become powerful enough to exploit cryptographic weaknesses.

Developers estimate that about 34% of all Bitcoin could fall into this category. That figure includes around 1.1 million BTC often linked to Satoshi Nakamoto. The proposal aims to secure these funds by pushing users to move their assets into quantum resistant addresses before any real threat emerges.

The strategy introduces a strict condition. Coins that do not migrate within a defined timeframe could become frozen. That mechanism intends to stop attackers from exploiting vulnerable wallets, though it introduces a different kind of risk.

Charles Hoskinson Argues Millions Of BTC Could Remain Permanently Locked

Charles Hoskinson has openly questioned how effective this plan would be in practice. He points to a major limitation tied to how recovery systems would work under the proposal.

Hoskinson explains that the suggested recovery method relies on Zero Knowledge proofs tied to BIP 39 seed phrases. Many early Bitcoin holders, especially those from before 2013, may not have access to these recovery tools or may have lost them entirely.

That gap creates a serious issue. Hoskinson estimates that at least 1.7 million BTC could remain exposed or become permanently inaccessible under this framework. He argues that these coins would not be saved by the system. They would simply be frozen with no realistic path to recovery.

Bitcoin has faced major technical debates before, and each one carried consequences that shaped the network over time. Previous upgrades improved scalability and security, though they often required users to adapt quickly or risk falling behind.

A look at earlier transitions shows that inactive wallets have always posed a challenge. Coins that remain untouched for years often lack updated security practices, which makes them harder to protect during major protocol changes.

That pattern now plays into the current discussion. The same coins that need protection may also be the least likely to migrate in time.

Bitcoin Future Scenarios Depend On Adoption And Technical Execution

Two possible paths stand out as this discussion continues. A successful rollout would require broad participation from wallet holders and clear migration tools that simplify the process. Strong coordination could reduce the number of stranded coins and improve overall network security.

A less favorable outcome would emerge if large amounts of BTC fail to move. Frozen coins could reduce circulating supply, though they may also raise concerns about fairness and access. Questions around lost or locked funds could influence how users view long term Bitcoin security.

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Charles Hoskinson continues to stress that solving quantum risks requires a more inclusive design. He maintains that any solution should account for early holders who may not have modern recovery options.

Bitcoin has handled technical challenges for more than a decade, often finding balance between innovation and stability. This latest debate introduces a different kind of test, where protecting the future could mean sacrificing access to the past.

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