$718 Billion Bitcoin Quantum Threat to Be Addressed by New Startup
Analysis
Price Impact
LowThe news discusses a startup, project eleven, raising funds to address the theoretical quantum computing threat to bitcoin's encryption. while the threat itself could be high-impact in the long run, the consensus among experts is that 'q-day' is not imminent, and a solution is being developed. therefore, the immediate price impact is expected to be low as it mitigates a long-term, not immediate, risk.
Trustworthiness
MedThe information comes from u.today, citing a well-funded startup backed by reputable vcs. it also references the general consensus among cryptographers and government agencies, and includes a warning from vitalik buterin, lending some credibility to the potential future threat, even if not immediate.
Price Direction
NeutralThe development of a solution to a hypothetical future threat (quantum computing breaking encryption) is generally positive for long-term network security. however, since the threat is not immediate and is largely considered 'overhyped' for the short term, there's unlikely to be a significant bullish or bearish price movement based on this news alone.
Time Effect
LongThe 'q-day' event is not expected anytime soon, with most authoritative voices agreeing it won't happen this year. while buterin warns about pre-2028, the solution and its impact are designed for a long-term future threat to blockchain security, making it a long-term consideration rather than a short-term market driver.
Original Article:
Article Content:
Cover image via U.Today Read U.TODAY on Google News The solution Is the quantum threat overhyped? Advertisement Project Eleven has raised $20 million to build defenses against the existential threat quantum computing poses to cryptocurrency. The round values the startup at $120 million. The company is backed by heavyweights from its June 2025 seed round, including crypto-native VC Variant Fund and quantum tech fund Quantonation. Project Eleven is preparing for "Q-Day." This is the theoretical event when quantum computers become powerful enough to break the encryption that secures the internet and financial systems. HOT Stories Morning Crypto Report: 145,214,184,927 Shiba Inu (SHIB) Mystery Stuns Robinhood, $30 Million XRP Whale Turns into Aggressive Short Seller, $96,000 Bitcoin Triggers 1,000% Liquidation Imbalance BREAKING: Ripple Secures 'Massive' EU License Win Senate Floods Crypto Bill with Amendments Short Squeeze Triggers Crypto Rally Bitcoin, Ethereum, and most major blockchains rely on Elliptic Curve Cryptography (ECC) for generating public and private keys. A sufficiently powerful quantum computer running Shor’s Algorithm could theoretically reverse this process. Advertisement You Might Also Like Wed, 12/24/2025 - 08:12 Bitcoin Quantum Fears Date Back to 2011 By Alex Dovbnya This would allow an attacker to empty any wallet where the public key has been exposed. According to the startup's estimates, roughly $718 billion worth of Bitcoin has been exposed since it is sitting in vulnerable wallets. Advertisement The solution Project Eleven is specifically working on "post-quantum" infrastructure for existing blockchains. Their flagship product, which is called "Yellowpages," functions as a cryptographic registry that allows users to sign a message proving they own a vulnerable Bitcoin address and link it to a quantum-secure identity. This creates a "fallback" record of ownership that could be used to recover funds if the main network were compromised. Is the quantum threat overhyped? As of today, the consensus among cryptographers, government agencies, and market analysts is that the immediate threat of quantum computers breaking Bitcoin is overhyped, Most authoritative voices agree that a "Q-Day" event is not happening this year (or anytime soon). That said, Ethereum's Buterin recently warned that elliptic curve cryptography could end up being compromised by quantum computing before 2028. #Bitcoin News #Quantum Computing