**The Threat of Quantum Computers Could Cause Bitcoin to Lose Its Digital Gold Status**

Jefferies strategists issued a new warning in market communications. Concerns are growing that the rapid development of quantum computers could fundamentally undermine the cryptographic defenses that cryptocurrencies like Bitcoin rely on.

**Complete Withdrawal from Investment Portfolios**

In a recent report, Christopher Wood revealed that he has fully removed Bitcoin from his flagship model portfolio. The position, which was allocated 10% at the end of 2020, has now been shifted to a combination of physical gold and gold mining stocks. This significant change in asset allocation suggests a shift in fundamental risk perception, rather than just responding to market cycles.

**Cryptographic Threats Brought by Quantum Technology**

Breakthroughs in quantum computing pose direct threats to the cryptographic technologies underlying Bitcoin. Current cryptographic protection mechanisms could become invalid in the face of quantum computing capabilities. If attackers can derive private keys from public keys, the cryptographic defenses supporting Bitcoin balances and mining rewards would be fundamentally weakened.

**Loss of Confidence Among Pension-Style Investors**

According to Wood’s assessment, if the threat of quantum computers materializes, Bitcoin’s role as “digital gold” would be severely compromised. Particularly in pension-style portfolios, its reliability as a long-term store of value would come into question. The scenario where cryptographic threats manifest earlier than expected cannot be ignored, and some capital allocators may begin to fundamentally doubt Bitcoin’s store of value properties.

As the pace of quantum computing technology accelerates, structural challenges facing the entire cryptocurrency market are coming into focus.