Casa co-founder Jameson Lopp has opposed the recovery of lost bitcoins through quantum computing, suggesting instead that they be burned.
In my latest essay I weigh in on the controversial issue of how to deal with quantum vulnerable bitcoin in a post-quantum future.
After great consideration, I think it’s best if we burn quantum vulnerable coins.https://t.co/E76Irzv5QA
— Jameson Lopp (@lopp) March 16, 2025
With the advent of quantum computers capable of cracking old address formats of the first cryptocurrency, such as P2PK, the opportunity will arise to access lost coins. This includes not only the ~1 million BTC attributed to Satoshi Nakamoto but also, for instance, the 7500 BTC on a hard drive discarded by Briton James Howells in a landfill.
Some estimates suggest that the volume of the first cryptocurrency, to which access is lost, reaches 35% of its issuance.
Several experts see no issue in returning coins to circulation via quantum computing, likening it to mining. However, Lopp argues that restoring access to lost assets contradicts fundamental principles of digital gold, such as censorship resistance, transaction immutability, and conservatism.
“Allowing quantum recovery of bitcoins is akin to wealth redistribution. We would enable the transfer of cryptocurrency from those unaware of quantum computers to those who have won the technological race,” he noted.
Lopp also pointed out that many active addresses with significant balances are under potential threat.
In his view, everyone should be given the opportunity to transfer funds to quantum-resistant addresses, and after a set period, all assets at risk of being compromised should be frozen.
Lopp cited Satoshi Nakamoto’s statement that lost bitcoins increase the value of the remaining coins. Thus, restored assets would dilute the value of the first cryptocurrency, he emphasized.
“Personally, I am not interested in rewarding entities capable of working with quantum technologies by inflating the money supply in circulation just because some people lost their keys long ago and others do not enhance the security of their bitcoin wallets. We can hope that this scenario never materializes, but hope is not a strategy,” Lopp concluded.
In October 2024, Chinese scientists conducted the “world’s first effective attack” on a widely used encryption algorithm using a quantum computer.
Later, experts claimed that the mentioned threat to cryptocurrencies was exaggerated.