Bitcoin Out, Gold In? Jefferies’ Shocking Treasury Shift Over These Fears
Jefferies removed its 10% Bitcoin allocation from its pension portfolio due to long-term quantum computing security fears, shifting the funds entirely into gold.Summary
Jefferies Financial Group has completely divested its 10% allocation to Bitcoin (BTC) from its long-only U.S. dollar pension portfolio, as detailed in its Greed & Fear report. The primary motivation for this shift is the long-term structural risk posed by emerging cryptographically relevant quantum computers (CRQCs), which could theoretically undermine Bitcoin's reliance on Elliptic Curve Digital Signature Algorithm (ECDSA) cryptography, potentially exposing millions of BTC to theft.
Although the firm acknowledged that this threat is not immediate, they view it as a challenge to Bitcoin's role as a long-term store of value. The initial investment, made in December 2020, yielded a substantial 325% return. Jefferies has reallocated the proceeds equally, placing 5% into physical gold bullion and 5% into gold-mining stocks.
The firm favors gold as a time-tested, resilient store of value, especially amid technological uncertainty, contrasting it with Bitcoin's emerging technological vulnerabilities.
(Source：CCN)