Kevin O’Leary Warns Bitcoin’s Quantum Problem May Be Bigger Than Expected

Canadian businessman Kevin O'Leary warned that concerns over quantum computing's potential to compromise blockchain cryptography are making large investors cautious about increasing their Bitcoin (BTC) exposure beyond a 3% allocation. He believes institutional investment will remain constrained until the industry provides a clear, credible solution to quantum vulnerabilities. This sentiment is echoed by others; for instance, Christopher Wood of Jefferies removed a 10% Bitcoin allocation from his model portfolio due to these risks. Furthermore, analysts like Willy Woo suggest quantum fears may have contributed to Bitcoin recently pausing its 12-year outperformance trend against gold. In response to these growing concerns, Bitcoin developers have advanced Bitcoin Improvement Proposal 360 (BIP 360), which introduces Pay-to-Merkle-Root (P2MR). P2MR is a proposed output type that commits to a script tree root, removing the quantum-vulnerable key-path spend present in Taproot (P2TR) outputs, thereby reducing the exposure of public keys.

(Source：BeInCrypto)