D-Wave Quantum CEO Alan Baratz warned that quantum computing will eventually break Bitcoin's proof-of-work protocol. The company has demonstrated a quantum-native alternative that is 1,000 times more energy efficient, though the proposal remains experimental. D-Wave shares have fallen 30% over the past month as a broader selloff hit quantum computing stocks.
D-Wave Quantum Inc. Chief Executive Officer Alan Baratz warned that sufficiently advanced quantum machines will one day outperform hardware used for Bitcoin mining, potentially breaking the network's proof-of-work protocol.
"It is clear that quantum computing will eventually be capable of breaking Bitcoin's proof-of-work," Baratz said in a Wednesday interview with Yahoo Finance.
Baratz said D-Wave has already demonstrated a new quantum proof-of-work protocol that relies on optimization problems solvable by quantum systems. The approach is roughly 1,000 times more energy efficient than Bitcoin's current mining mechanism, he claimed, though the proposal remains experimental and would likely face strong pushback from the Bitcoin community. The protocol aims to preserve the competitive nature of proof-of-work while ensuring mining remains resistant to quantum-based attacks.
The warning reignites a long-standing debate over quantum risk to blockchain security, with implications for Bitcoin's roughly $1.2 trillion market cap. Most experts agree today's quantum hardware remains far from posing an immediate threat, but the timeline for when that changes remains unclear. Baratz did not specify a timeframe for when quantum machines could pose a real danger to Bitcoin's network.
The discussion has expanded beyond quantum computing alone. Anthropic's Claude Mythos Preview model, Eve, recently discovered previously unknown attacks against deliberately weakened versions of cryptographic algorithms, according to research published by the AI company. The finding has fueled debate over whether increasingly capable AI systems could accelerate cryptographic breakthroughs.
Bitcoin evangelist Samson Mow has pushed back against calls for urgency, arguing there is no need to rush to adopt post-quantum cryptography. Baratz countered that the cryptocurrency industry should begin considering quantum-native alternatives before the technology matures.
D-Wave's stock has fallen 30% over the past month to $16.75, tracking a broader selloff in quantum computing pure-plays. IonQ shares dropped 39% and Rigetti Computing fell 30% over the same period as investors trimmed exposure to high-multiple, pre-profit technology names. D-Wave carries a market capitalization of roughly $6.5 billion and is forecast to report second-quarter revenue of $4 million, according to analyst estimates.
The warning could drive capital toward quantum-resistant cryptocurrencies as investors reassess the long-term security of proof-of-work networks. Several blockchain projects are already developing post-quantum cryptographic standards, though no major network has yet implemented such upgrades at scale.
This article is for informational purposes only and does not constitute investment advice.
