Charles Hoskinson Warns Bitcoin’s Quantum Defense Proposal Could Permanently Lock 1.7 Million BTC

Cardano founder **Charles Hoskinson** has raised serious concerns about Bitcoin Improvement Proposal **BIP-361**, a plan designed to protect the network from future quantum computing attacks. In a recent livestream, Hoskinson argued that the proposal — currently presented as a soft fork — is effectively a disguised hard fork and would fail to rescue approximately **1.7 million BTC** held in pre-2013 wallets.
These early coins, including roughly **1.1 million BTC** widely attributed to Satoshi Nakamoto, were created before modern standards like BIP-39 seed phrases became common. Hoskinson explained that BIP-361’s zero-knowledge recovery mechanism relies on seed-based proofs of ownership, which simply do not exist for these oldest holdings. As a result, the coins could become permanently frozen or unrecoverable if the upgrade moves forward in its current form.
Hoskinson noted that while the proposal aims to address the estimated **8 million BTC** (about 34% of supply) with exposed public keys vulnerable to quantum threats, the recovery phase would not cover the earliest mined coins. He emphasized that without on-chain governance — something Cardano and other chains possess — reaching consensus on such a significant change remains extremely difficult for Bitcoin.
The discussion highlights growing worries about quantum risks expected to materialize in the 2030s. If no effective solution is found, a quantum-capable actor could potentially steal vulnerable funds and dump them on the market. Hoskinson’s critique has sparked fresh debate in the Bitcoin community about balancing security upgrades with the network’s conservative approach to changes.
Bitcoin is currently trading near recent highs as the broader market digests this technical debate alongside ongoing geopolitical developments.
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