Christopher Wood of Jefferies removed Bitcoin from the firm’s portfolio, citing quantum computing risks, replacing it with gold and gold-mining equities as of now.
The shift highlights concerns about Bitcoin’s cryptography vulnerability to quantum attacks, potentially impacting investor confidence and sparking discussions on crypto’s long-term security.
Christopher Wood, Global Head of Equity Strategy at Jefferies, removed the 10% Bitcoin allocation from the firm’s Greed & Fear model portfolio, citing quantum computing risks. He replaced it with 5% physical gold and 5% gold-mining equities.
Jefferies made this decision due to the potential threat quantum computing poses to Bitcoin’s cryptography. “The need for caution against quantum computing threats is crucial,” said Christopher Wood. Wood has been a strong supporter of Bitcoin, initially adding it to the portfolio in December 2020 due to concerns over fiat currency debasement.
Gold Gains Favor as Bitcoin Faces Quantum Concerns
This decision primarily affects BTC, as research indicates a substantial portion of its supply may be vulnerable to quantum attacks. The move reflects a shift in Jefferies’ confidence in Bitcoin’s security against technological advancements. BlackRock has highlighted similar concerns, listing long-term risks in their ETF disclosures.
Financial analysts note the shift to gold underscores a growing concern about cryptocurrency vulnerability to future technological advancements. Historical increases in Bitcoin’s value have surpassed gold, yet current strategy prioritizes traditional safe havens.
Experts Advocate for Quantum-Resistant Security Measures
No previous similar portfolio adjustments have been recorded. However, past Bitcoin fluctuations in response to technological developments highlight the impact of external technological threats on cryptocurrency stability.
Experts, such as those from Kanalcoin, suggest maintaining vigilance over quantum developments. Adam Back of Blockstream emphasizes preparing quantum-resistant security measures quietly rather than raising panic among investors. Adam Back stated, “The quantum threat is distant, and we should focus on development of quantum-resistant signatures.” Additionally,
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