Bitcoin’s Quantum Fears: The Newest ‘Apocalypse’ (Spoiler: It’s Fine)

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CoinDesk Indices

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Welcome to Crypto Long & Short, where we give you the crypto news that’s slightly more digestible than explaining blockchain to your grandma. This week:

  • Martin Gaspar on how bitcoin plans to “survive” quantum fears, just like it survived the whole “climate catastrophe” thing in 2021
  • Top headlines that institutions really should read, courtesy of Francisco Rodrigues (not that anyone’s actually reading them)
  • Aave’s revenue multiples at rock-bottom 2024 levels-because why not add a little drama to the crypto world?

Thanks for joining us! – Alexandra Levis

Expert Insights

Why bitcoin’s quantum fears will pass just like the climate panic

By Martin Gaspar, Senior Crypto Market Strategist, FalconX

Quantum computing is the new “boogeyman” of the crypto world. In the past few months, it’s like every time someone mentions quantum, investors think “Oh no, it’s over!” But don’t panic, just like climate hysteria from 2021 (remember when everyone thought Bitcoin was going to melt the Arctic?), this too shall pass. We’re just going to need some slightly more convincing data than, “Um, quantum could break everything.”

Here’s the thing: in 2021, Bitcoin’s Proof of Work was painted as the villain in a global climate change drama. Headlines shouted, “Bitcoin is killing the planet!” which was a bit dramatic since, let’s face it, compared to data centers in the tech industry, Bitcoin’s energy consumption is basically a car with a Prius sticker. Still, the fear-mongering worked-Elon Musk even dropped Bitcoin as a payment method due to “climate concerns” (because he’s clearly a man of the environment). And if Elon said it, then obviously the world must follow…right?

Fast-forward to today: Bitcoin’s quantum fears are exactly the same. Sure, there’s a risk, but we’re already seeing some of the biggest players in crypto putting out facts that’ll quiet the panic-just like when crypto miners proudly showed off their “green” energy stats in 2021. So don’t worry, the quantum apocalypse isn’t happening anytime soon.

Industry leaders like Coinbase are joining forces to calm the masses, creating a working group to figure out how quantum computing will “coexist” with blockchain. And look, Strategy even launched a quantum security program during its earnings call to give everyone a little peace of mind (and possibly stop the sell-off). These guys are literally doing the tech equivalent of saying, “See? It’s fine!”

Also, there are some startups, like Project Eleven and BTQ Technologies, who are working on building quantum-proof blockchains. So, yeah, the industry isn’t sitting around twiddling its thumbs-they’re actively working to make sure you don’t need to hide your Bitcoin in a panic room.

The conclusion? Bitcoin’s quantum fears will be just another footnote in the saga of “things that seemed like a big deal, but weren’t.” Like the whole “Bitcoin is going to collapse the entire ecosystem” thing. Remember that one? Neither do I.

Headlines of the Week

Francisco Rodrigues

Geopolitical risks are reminding everyone that crypto investors can be very reactive-if something happens in the Middle East, they’re already fleeing. But hey, at least the builders seem unfazed. So here’s what you should know:

  • Over $9 billion fled from Bitcoin and Ether ETFs in the past 4 months: Yep, that’s right. Just when you thought your portfolio couldn’t get any worse.
  • Iran’s crypto outflows jumped 700% after U.S.-Israeli airstrikes: Talk about “I’m outta here” vibes.
  • Ethereum Foundation drops most ambitious roadmap since… forever: It includes seven hard forks and some seriously heavy post-quantum cryptography. That’s the nerdy equivalent of saying, “We’ve got this.”
  • Morgan Stanley wants to become your new crypto custodian: Just what we needed, another bank in the game.
  • Indiana wants to add Bitcoin to its public retirement plans: Yes, you read that correctly. The Hoosier state is going full crypto.

Chart of the Week

Aave’s revenue multiples hit 2024 lows despite higher prices

Aave is having what we call a “valuation reset.” It’s like when you realize your favorite pair of shoes are on sale, but you also remember that you haven’t worn them in six months. The token price might be higher, but the FDV/annual revenue ratio has collapsed (don’t worry, I won’t bore you with the details). What’s more concerning? Aave’s market cap is heavily discounting its future earnings, which makes you think, “Are they doing something we don’t know about?”

Looking for more? Get the latest crypto gossip and expert opinions by heading over to coindesk.com. We’ll be here, making crypto less cryptic one article at a time.

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2026-03-04 20:17