Bitcoin developer Matt Carallo has publicly refuted theories that fears over quantum computing are the primary driver behind Bitcoin's recent sharp price decline. In an interview on the Unchained podcast, Carallo argued that if quantum computing were a genuine near-term market concern, Ethereum (ETH) would be outperforming Bitcoin, not trading flat. "If that were true, then Ethereum would be up substantially on Bitcoin," Carallo stated, countering speculation within the Bitcoin community linking the selloff to quantum security risks.
Carallo believes the market does not perceive quantum computing as an immediate threat to Bitcoin. Instead, he suggests the 46% drop from Bitcoin's October all-time high is more likely due to increased competition for capital from other sectors, notably artificial intelligence. "AI is super capital-intensive," Carallo noted, indicating it is now directly competing with Bitcoin for investment flows.
This perspective contrasts with that of other industry figures. Charles Edwards, founder of Capriole Investments, asserts that quantum computing risks are already being priced into Bitcoin's valuation. Edwards estimates that Bitcoin is currently trading at a roughly 20% discount to its fair value due to this threat. He warns that if Bitcoin's network does not become quantum-resistant, the discount could deepen, potentially leading to a 50% decline in value within a little over a year.
The divergence in views extends to development priorities. While the Ethereum Foundation has proactively included post-quantum readiness in a recent security update, Bitcoin's core developers have not prioritized immediate action on quantum risks, a point of criticism for some observers. Entrepreneur Kevin O'Leary added that quantum computing resources would likely be directed toward fields like medical research rather than attacking Bitcoin, suggesting the fears may be overstated.
