Capriole Warns of a Structural Vulnerability in Bitcoin

The quantum threat looms over Bitcoin. Charles Edwards, founder of the Capriole fund, issues a clear warning: without adequate protection by 2028, the king of cryptos could collapse. A prediction that resonates as the market is already experiencing turbulence.

The Urgency of a Transition to Post-Quantum Encryption

Charles Edwards does not mince words. The fund manager, specialized in digital assets, states that Bitcoin must urgently equip itself with protection against quantum computing before 2028. Otherwise, the BTC price could collapse well below 50,000 dollars and continue its descent until a solution is found.

This warning comes in an already tense context for the crypto market. On Monday, December 15, bitcoin suddenly dropped to 86,700 dollars, its lowest level in two weeks. This drop triggered a cascade of liquidations exceeding 210 million dollars in just one hour. A stark reminder of the sector’s inherent volatility.

Quantum computing represents a long-standing theoretical threat to cryptos. These ultra-powerful machines could, in theory, break the encryption algorithms that currently protect users’ private keys. Once these protections are compromised, the funds of millions of holders would be exposed to malicious attacks.

Edwards is categorical: “Starting to think we will just need a huge bear market to wash out the idiots who think the Quantum threat to Bitcoin is a joke“. 

According to him, a fix must be deployed by 2026 to avoid the worst.

Bitcoin More Vulnerable Than Traditional Institutions

Contrary to a common belief, Edwards believes that Bitcoin will be affected before traditional banking systems. His reasoning is based on a simple fact: most major financial institutions are already migrating to post-quantum encryption protocols. 

Banks also have mechanisms to cancel or block fraudulent transactions, an option that does not exist in the crypto universe.

“Bitcoin will be the first on the quantum hot seat,” Edwards emphasizes. Without a quick solution, this vulnerability of the decentralized network risks triggering widespread panic among investors. The founder of Capriole even compares the potential scale of this crisis to the collapse of FTX, but much worse.

Faced with this threat, some actors propose temporary solutions. Willy Woo, bitcoin pioneer, suggests keeping assets in a SegWit wallet for about seven years, the time developers implement a durable protection. A cautious approach for concerned investors.

However, not everyone shares this alarmist view. Michael Saylor, a staunch bitcoin advocate, downplayed these concerns last July. He mostly sees it as a “marketing maneuver” aimed at artificially inflating the price of tokens labeled “quantum.” This difference of opinion reflects the debate currently crossing the crypto ecosystem on the real urgency of the threat.

The quantum threat is no longer just a science fiction topic for Bitcoin. Between Charles Edwards’ warnings and the current market volatility, the crypto ecosystem faces a major technical challenge. The coming years will determine whether the network can adapt in time to preserve investor confidence and avoid a historic collapse.