VanEck sees quantum threats and privacy gaps in Bitcoin.
Summary
- VanEck CEO warns on Bitcoin encryption and privacy
- VanEck considers Zcash as Bitcoin faces quantum risks
- Industry experts debate Bitcoin’s quantum computing threat
VanEck CEO Jan van Eck questioned Bitcoin’s encryption and privacy protections during a recent appearance on CNBC’s Power Lunch, stating the asset management firm could withdraw from the cryptocurrency if fundamental technological concerns are not addressed.
Speaking alongside anchor Brian Sullivan, van Eck said challenges facing Bitcoin extend beyond price volatility, pointing to technological weaknesses within the cryptocurrency’s design.
“There’s something else going on within the Bitcoin community that non-crypto people need to know about,” van Eck stated, according to the broadcast. “Ultimately, VanEck has been around before Bitcoin. We will walk away from Bitcoin if we think the thesis is fundamentally broken.”
The executive cited concerns about Bitcoin’s (BTC) cryptographic robustness, resistance to quantum computing threats, and privacy model as key evaluation factors. Van Eck referenced Zcash as an alternative some Bitcoin holders are considering, noting that privacy and encryption strength have emerged as significant concerns within segments of the cryptocurrency community.
Following the appearance, van Eck attributed the ongoing bitcoin bear market to multiple factors, including the halving cycle‘s impact through 2026, quantum encryption concerns, and comparisons to Zcash’s privacy features, according to statements reported by ecoinimist.com. He also noted advice from VanEck portfolio manager Pranav Kanade regarding dollar cost averaging during bear markets.
The comments align with broader industry discussions about quantum computing threats to blockchain technology. At Devconnect in Argentina on Nov. 17, Ethereum co-founder Vitalik Buterin warned about quantum computing’s potential impact on cryptographic standards, stating “Elliptic curves are going to die,” in reference to mathematical foundations securing Bitcoin and Ethereum.
University of Texas at Austin professor Scott Aaronson, a quantum computing researcher, said a fault-tolerant quantum computer capable of running Shor’s algorithm could emerge before the 2028 U.S. presidential election, given current hardware progress rates. Such technology would enable attackers to derive private keys from public ones, posing systemic risks to existing blockchains.
Samson Mow, CEO of Bitcoin infrastructure firm JAN3, disputed van Eck’s statements, arguing the VanEck executive should not be speaking on Bitcoin and rejecting suggestions that Bitcoin proponents are shifting toward privacy-focused alternatives like Zcash.
Zcash has experienced price gains amid increased attention to privacy features, according to market data. The cryptocurrency’s performance reflects how narratives around privacy and quantum resistance can influence trading activity during periods of Bitcoin weakness.
The debate highlights emerging questions about whether Bitcoin’s architecture can withstand advances in quantum computing technology, a consideration that may factor into market assessments as participants evaluate the cryptocurrency’s long-term viability.
