Microsoft’s Quantum Leap: Is Bitcoin’s Biggest Security Threat Closer Than We Think?

Microsoft has unveiled a groundbreaking advancement in quantum computing with its new chip, Majorana 1. This development could solve long-standing scaling issues in the field—but it has also reignited fears within the crypto community. The question now looms larger than ever: Could quantum computing render Bitcoin’s encryption obsolete sooner than expected?

A Crypto Time Bomb?

While the quantum threat to blockchain security has always been more of a theoretical concern, some believe Microsoft’s progress may accelerate the timeline. However, Pierre-Luc Dallaire-Demers, a quantum computing expert at the University of Calgary, suggests there’s no immediate cause for panic.

“I don’t think it changes the timelines for Bitcoin,” Dallaire-Demers told DL News, maintaining that the real threat window remains between 2029 and 2031. This timeframe aligns with widespread expectations that older Bitcoin wallets relying on vulnerable cryptography could be compromised within the next five to seven years.

Inside the Majorana 1 Breakthrough

Microsoft’s Majorana 1 chip is named after the Majorana fermion, a particle that allows for the creation of more stable qubits—an essential component of quantum computing. Unlike superconducting qubits, which are prone to frequent errors, Majorana-based qubits are theoretically more scalable and could lead to significantly more powerful quantum machines.

“Over time, Majoranas may surpass superconducting qubits, but likely not for another decade or so,” Dallaire-Demers noted, emphasizing that significant engineering hurdles remain before such quantum computers become a tangible threat to cryptographic systems.

The $107 Billion Vulnerability

Not all Bitcoin addresses are equally at risk. The most immediate targets for quantum decryption are older Bitcoin wallets using Pay-To-Public-Key (P2PK) addresses. These require only a public key for transactions, making them highly susceptible to quantum attacks once the technology matures.

One of the most well-known P2PK wallets belongs to none other than Bitcoin’s enigmatic creator, Satoshi Nakamoto. Holding over 1.1 million BTC—valued at roughly $107 billion—Nakamoto’s untouched fortune could become one of the first major victims of quantum decryption. This raises a contentious question within the Bitcoin community: Should efforts be made to freeze Nakamoto’s coins before quantum computers gain the ability to steal them?

“As QC gets threatening, the Bitcoin community might want to look into freezing Satoshi’s coins,” said Emin Gün Sirer, founder of the Avalanche blockchain, in a recent X post.

What’s Next?

Even if Microsoft’s Majorana 1 chip doesn’t mature fast enough to compromise Bitcoin within the next decade, its implications extend far beyond cryptocurrency. Quantum computers could one day crack RSA encryption—widely used across the internet for secure communications and employed by certain blockchain projects like Hedera Hashgraph and Arweave.

According to Dallaire-Demers, Majorana 1 may become a “serious contender” for breaking RSA encryption by 2035, posing an existential threat to digital security as we know it.

BitGalactic’s Take: Should Bitcoiners Be Worried?

From a BitGalactic perspective, this development reinforces the need for proactive quantum-resistant solutions in crypto. While many blockchain projects are already working on quantum-proofing their cryptography, the industry cannot afford to be complacent. The introduction of Majorana 1 should serve as a wake-up call for developers and investors alike.

For now, the threat remains on the horizon rather than at the doorstep. But as history has shown, technological breakthroughs can arrive faster than expected. The question is not if quantum computers will challenge Bitcoin’s security—but when.