One of Wall Street’s Top Strategists No Longer Trusts Bitcoin | US Crypto News
Jefferies strategist Christopher Wood removed Bitcoin from his model portfolio due to long-term quantum computing security concerns.Summary
Christopher Wood, global head of equity strategy at Jefferies and a prominent Wall Street strategist, has removed Bitcoin entirely from his flagship model portfolio, reallocating the 10% position equally to physical gold and gold-mining stocks. Wood's decision, detailed in his "Greed & Fear" newsletter, was based not on price volatility but on doubts regarding Bitcoin's long-term durability, specifically citing the growing threat posed by advances in quantum computing to the asset's security and store-of-value thesis.
Wood, an early institutional supporter who first added Bitcoin in 2020, believes quantum computers could eventually compromise the cryptographic systems securing private keys, undermining Bitcoin's multi-decade store-of-value argument for long-term investors. This concern is echoed by others, including Coinbase research, which noted that millions of BTC, particularly those in older or reused addresses, could be exposed to long-range quantum attacks, necessitating a migration to post-quantum cryptography.
The article highlights a tension between capital allocators worried about this theoretical risk and developers who may be in denial. Furthermore, proposed solutions like forced protocol changes raise governance issues regarding property rights. Wood ultimately favors gold as a tested hedge free from such technological uncertainty, while other analysts cite different long-term risks to Bitcoin, such as shrinking miner subsidies post-halving leading to potential security compromises.
(Source：BeInCrypto)