Why is Christopher Wood selling Bitcoin?

Christopher Wood is selling Bitcoin due to long-term concerns about the potential threat posed by quantum computing to its security.

What is the risk of quantum computing to Bitcoin?

Quantum computers could potentially break the cryptography securing Bitcoin, allowing private keys to be derived from public keys and leading to theft.

Where are Jefferies' funds being reallocated from Bitcoin?

The funds from Bitcoin are being reallocated equally to gold and gold-mining stocks.

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Quantum Threat Triggers Bitcoin Sell-Off

16 Jan

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Summary

Jefferies strategist ditches Bitcoin due to quantum computing fears.
Bitcoin's 10% allocation is being reallocated to gold and miners.
Quantum computers could compromise Bitcoin's cryptographic security.

Quantum Threat Triggers Bitcoin Sell-Off

A significant shift in investment strategy has occurred as Jefferies' global equity strategist, Christopher Wood, is divesting a 10% allocation to Bitcoin. This decision stems from mounting long-term concerns regarding the advancement of quantum computing. The vacated funds are slated for reallocation, with 5% directed towards gold and the remaining 5% invested in gold-mining stocks. This strategic pivot underscores a growing apprehension about the potential for quantum computers to undermine Bitcoin's cryptographic foundations.

While acknowledging Bitcoin's substantial gains since its initial allocation in December 2020, the report highlights that the long-term security of Bitcoin as a store of value is now being questioned. The primary concern is that powerful quantum computers, potentially emerging sooner than anticipated, could break the cryptography that secures Bitcoin transactions. This could enable the derivation of private keys from public keys, posing an existential threat to the digital asset.