Christopher Wood has dropped Bitcoin as a currency from Jefferies’ flagship. Greed & Fear Model portfolios, Citing Concerns that Developments in quantum computing Cryptography’s foundations could be threatened by an existential danger.
Wood confirms in Jefferies’ latest newsletter that the firm has made a decision to remove its 10% Bitcoin allocation and replace it with a split allocation involving 5% of physical gold equities as well as 5% of gold-mining stocks. according You can also find out more about the following: Bloomberg.
This move, according to the analyst, reflects the growing insecurity about Bitcoin’s ability to remain a store of long-term value even as technology changes at an accelerated pace.
“While Greed & Fear does not believe that the quantum issue is about to hit the Bitcoin price dramatically in the near term, the store-of-value concept is clearly on less solid foundation from the standpoint of a long-term pension portfolio,” Wood Writer
Wood is a pioneer institutional investor in Bitcoin. He first added Bitcoin to his model portfolio, December 2020. This was during the pandemic-era of stimulus. In 2021, he increased his allocation to 10%.
Bitcoins have been added to the list of currencies since that time. risen approximately The gold price rose by 145% during the same period.
Bitcoin is at risk from quantum computing
Wood claims that despite the performance being strong, quantum computing This is a risk which cannot be overlooked. Bitcoin’s safety relies on algorithms cryptographic that cannot be broken by classical computers.
Yet, quantum computers powerful enough to derive the private key from the public one could theoretically enable unauthorized transfers, and undermine trust in a network.
Security Researchers estimate that roughly 20% to 50% of Bitcoin’s total supply — between 4 million and 10 million BTC — could be vulnerable under certain conditions.
Coinbase researchers have identified About 6.5 Million BTC are held in old wallet formats that have public keys exposed. This makes them vulnerable to long-range attacks.
It has led to a growing division within the Bitcoin community. Some believe developers underestimate the risks. Some, such as Blockstream CEO Adam Back. maintain It is better to keep investors calm and work quietly on quantum-resistant signs than alarm them.
Mainstream finance has begun to take up the debate. BlackRock’s spot Bitcoin ETF disclosed quantum computing to be a possible long-term threat. Solana founder Anatoly Yakovenko also recently suggested Within five years, there’s a 50% probability of an important quantum breakthrough.
Wood is convinced that the incertitude itself makes gold more attractive.
He said that metals are a tried and tested hedge against an ever-changing geopolitical, technological, and economic landscape. “only positive for gold.”
Gold climbed to record highs This month, gold reached a record high of $4,600 an ounce as investors bought the asset to protect themselves from geopolitical turmoil involving Iran. They also expected the Federal Reserve to cut rates in response to softer U.S. labor and inflation data.
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Source: bitcoinmagazine.com
