Photo: Yalcin Sonat & T. Schneider (Shutterstock)
Recently, conversations at the highest levels of the crypto market have increasingly focused on the threat quantum computers pose to Bitcoin’s encryption. During CNBC’s ‘Power Lunch,’ the head of a major asset manager stated that they would step away from the market if the fundamentals of crypto are threatened.
Quantum Technology and Bitcoin #
Jan van Eck, director of asset manager VanEck, told CNBC he has questions about Bitcoin’s privacy and encryption in light of the quantum computing threat. He said that while Bitcoin is a good investment for now, his firm would exit the market if the fundamentals of Bitcoin—its cryptographic security and privacy—no longer hold.
He stated that his company believes in Bitcoin but that it has been around longer than Bitcoin and, if necessary, will continue without it.
Renowned cryptographer and cypherpunk Adam Back recently noted that Bitcoin will likely not face a meaningful threat from quantum computers in the next 20 to 40 years.
VanEck and its Bitcoin ETF #
VanEck is one of the world’s largest asset managers and offers several Bitcoin products. It was one of the first firms to launch a Bitcoin ETF (exchange-traded fund) in early 2024. The fund now manages around $1.2 billion.
According to Jan van Eck, many Bitcoin OGs and maxis (early Bitcoin investors and those who see Bitcoin as the superior coin) are now looking to other coins for transactional privacy, such as Zcash. This coin was central to the recent renewed interest in transaction privacy and anonymity.
Van Eck Analyzes #
Van Eck believes that bear markets (when prices fall) are now priced in, and it’s a good idea to use dollar-cost averaging (making periodic purchases without trying to time the market) during these periods, rather than chasing bull markets.
In his view, Bitcoin is certainly a coin that belongs in an investment portfolio for various reasons.
During the interview, he briefly touched on the Bitcoin cycle, predicting that 2026 will be a similar negative year with falling prices. He noted that Bitcoin has risen less in this cycle, leading people to expect it will also fall less.