Bitcoin Faces Quantum Risk: Willy Woo Urges for SegWit as Shield

The largest and market leading cryptocurrency, Bitcoin, is currently facing a potential existential threat from quantum computers. As noted by prominent analyst Willy Woo in a recent X post, the first cryptocurrency may become vulnerable because these machines can derive private keys from public keys. 

“In the past it was about protecting your PRIVATE KEY (your seed phrase). In the age of big scary quantum computers (BSQC) that are coming, you need to protect your PUBLIC KEY also,” Woo said, adding, “Basically a BSQC can figure out your private key from a public key.”

Woo highlighted that current Taproot addresses, which start with “bc1p,” embed the public key directly, exposing coins to risk. By contrast, SegWit addresses, starting with “bc1q,” hide the public key until the first outgoing transaction. 

A simple plan for Bitcoin holders to keep their coins safer, Woo explained. First, he said people should make a new SegWit wallet. Then, they should move all their Bitcoin into that wallet and keep adding more there. However, they shouldn’t spend from it, since sending coins can expose the wallet’s public key.

He believes Bitcoin could get a quantum-proof upgrade in about seven years, maybe by 2030. Woo also mentioned that big holders like ETFs and crypto exchanges can act early by moving their coins to safer wallets before the upgrade arrives. 

A temporary shield against quantum computers

SegWit acts as a temporary defense by hiding public keys behind hashes. This step complicates quantum computers’ ability to reverse-engineer private keys. Woo emphasized, “Once you spend from such a wallet, your public key becomes exposed, making it vulnerable.” 

Additionally, he warned that early Bitcoin addresses, including Satoshi’s 1 million BTC, remain at risk unless future soft forks freeze them. Consequently, users with Taproot addresses should urgently consider migrating funds to safer wallets.

However, not all experts agree on Woo’s approach. Charles Edwards, Founder of Capriole, disagreed with Woo’s idea. He said SegWit isn’t really a strong safety solution and warned that waiting seven years could put Bitcoin at serious risk. Edwards believes developers should start building a quantum-safe system right now. He also described Bitcoin as “the most vulnerable network in the world,” urging the community to act quickly to keep it secure.

Quantum doomsday clock signals imminent danger

The Quantum Doomsday Clock project estimates that quantum computers could break Bitcoin’s encryption within two years. The team calculated that 1,673 qubits could compromise ECC-256, while RSA-2048 requires 2,314 qubits. Improvements in error control could accelerate these timelines. Once quantum computers reach sufficient power, an attack could take hours or days.

Interestingly, wallets that use P2PKH addresses get a bit of extra safety for now because they create a new public key each time you send coins. Still, experts agree this is only a short-term fix. Sooner or later, all systems using today’s encryption methods will need to switch to quantum-safe technology.

Industry responds with post-quantum solutions

Blockchain projects have already started building quantum-resistant technologies. For example, Abelian, the post-quantum Layer-1 blockchain, announced its collaboration with leading crypto exchange MEXC to create the Post-Quantum Blockchain Day 2025. In such a way, it combined Abelian’s quantum-resistant protocol with MEXC’s network of over 40 million users from 170 countries.

#PQBD2025

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