Jefferies drops Bitcoin over quantum computing concerns
5 Investments Jefferies dropped its 10% Bitcoin allocation, citing quantum computing risks, and shifted funds to gold and gold-mining equities to enhance portfolio security.
Jefferies has removed its recommended 10% Bitcoin allocation from a key model portfolio, citing concerns over quantum computing's potential to compromise Bitcoin's security. The move, led by Christopher Wood, was not prompted by price volatility or regulatory issues, but by the existential risk that quantum computing could break the cryptographic algorithms protecting the Bitcoin network. Wood, who previously supported Bitcoin as a hedge against monetary debasement, now warns that quantum technology may arrive sooner than anticipated, threatening Bitcoin’s long-term viability as a store of value. As a result, the Bitcoin allocation has been replaced with 5% in gold and 5% in gold-mining equities. This decision highlights a growing trend among institutional investors to scrutinize the technological resilience of digital assets. With quantum computing risks entering mainstream asset allocation discussions, crypto startups are accelerating efforts to develop post-quantum security solutions.
