Christopher Wood, Global Head of Equity Strategy of Jefferies, has pulled Bitcoin out of his model portfolio five years later. He closed a 10% allocation that was instituted in 2020. Wood cautioned that the advancement in quantum computing would render Bitcoin worthless over time as a safe store of value, according to a report by Bloomberg.
Wood explained the transformation in his Greed & Fear newsletter. He sold the Bitcoin and invested an equal amount in physical gold and in gold-mining equities. He claimed that the quantum breakthrough that is challenging the conventional understanding of cryptographic security is increasing the uncertainty of the pension-like investors.
Quantum Threats Challenge Bitcoin’s Reliability
He said that institutions would start doubting the long-term dependability of Bitcoin. Other allocators are worried that more powerful quantum machines may be able to extract private keys given public keys that have been unveiled. Wood indicated that these developments might have an impact on the levels of reliance on Bitcoin balances, the security of transactions, and mining rewards.
Wood was worried that cryptographically relevant systems might come earlier than expected. He cautioned that such a situation may reduce the argument that Bitcoin is digital gold. The shift, he stated, is a manifestation of rising caution among long-term investors that track progress in computing power.
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Many cryptography researchers, however, dispute the urgency of this threat. According to the experts, the existing quantum machines are small and very susceptible to errors. This suggests that systems capable of breaking the elliptic-curve cryptography used in Bitcoin are likely more than a decade away.
BTC 2026 Forecast Remains Strong Amid Quantum Debate
Large institutions also see minimal quantum disruption in the future. According to Grayscale Digital Asset Outlook 2026, quantum risk would not affect the price of BTC in 2026. It anticipates expansion in institutional demand, regulatory clarity, and increased alarm over conventional currency systems.
Grayscale predicts a new all-time high for BTC in the first half of 2026. It underlines that the 20 million BTC should be mined in March 2026. According to the report, this milestone is given as an indicator of the predictable issuance and the scarcity of Bitcoins.
The debate is now preparatory rather than theoretical. Researchers and developers are looking into post-quantum cryptographic techniques. These systems effectively shield the blockchains against a possible attack in the future by powerful quantum computers.
The action of Wood is an important shift in the mood of the institution. Some investors have begun to take technological risk into account besides the usual macro factors. The debate on the sustainability of BTC in the long term has infiltrated the general financial discourse, and it is still affecting the view of long-term protection of digital resources.
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