A proposed Bitcoin improvement to address quantum vulnerability has divided the cryptocurrency community over whether to freeze legacy addresses, including those attributed to Satoshi Nakamoto. The BIP-361 proposal, which went live on April 14, has sparked debate between prominent figures including software engineer Jameson Lopp, who supports the measure, and Adam Back, who opposes it.
The BIP-361 Proposal and Community Divide
BIP-361 introduces a “post quantum migration and legacy signature sunset” mechanism to protect Bitcoin from potential quantum computing attacks. The proposal remains in draft phase with no deadline for signaling support.
The proposal works in two stages. In phase A, new transactions to quantum-vulnerable addresses would be frozen, forcing the network to shift to post-quantum (PQ) address types. Phase B would block all spending to vulnerable addresses, potentially with a five-year grace period. According to the proposal, responsibility for quantum-proof holding will rest with individual wallet holders, each required to upgrade their addresses.
Rough estimates suggest approximately 6.7M BTC may be at risk due to being held in early, less secure addresses. The argument for freezing is that hacked funds could be sold, undermining Bitcoin’s price and eroding trust in the network.
Community reaction has been mixed. Cypherpunk Jimmy Song tweeted on April 16, 2026: “BIP361 is a complete non-starter for me, but I would still like to see an attempt by its supporters to put it on the Bitcoin network as either a soft fork or a hard fork. Not because I want to get a ‘fork dividend,’ but because we need to see how these things play out.” Supporters of BIP-361 argue that the original Bitcoin ethos of self-ownership without centralized censorship is outdated in the face of quantum threats.
Quantum Hacking Feasibility and Counterarguments
Opponents of BIP-361 argue that quantum computing poses a less imminent threat than proponents suggest. Satoshi Nakamoto’s addresses use the P2PK standard, which exposes public keys and leaves them theoretically vulnerable to quantum attacks. However, Satoshi’s holdings are spread across more than 22,000 addresses, meaning each would need to be individually hacked before coins could be released.
Critics also note that quantum computers are not yet readily available outside research contexts, and using them for attacks may be prohibitively expensive in the near term. While quantum algorithms continue to improve and lower the computational requirements for attacks, viable quantum hacking remains far from practical reality.
Alternative solutions have been proposed, including a hard fork to a quantum-proof network at a predetermined block with a long grace period for claiming coins—an approach similar to one suggested by Satoshi Nakamoto in Bitcoin’s early days. Some community members suggest leaving the network as-is, treating old wallets as a bounty for quantum computer developers.
The debate underscores a fundamental tension: how to ensure Bitcoin’s long-term survival against future threats without undermining its market value, reputation, and the proof-of-work consensus achieved to date. Address freezing may protect large holdings and prevent a flash crash if wallets are compromised, but critics argue it contradicts Bitcoin’s core ethos of avoiding censorship and asset freezes.
FAQ
What is BIP-361 and when was it proposed?
BIP-361 is a proposal to address Bitcoin’s potential vulnerability to quantum computing attacks through a “post quantum migration and legacy signature sunset” mechanism. The proposal went live on April 14 and remains in draft phase with no deadline for signaling support.
How much Bitcoin could be at risk from quantum attacks?
Rough estimates suggest approximately 6.7M BTC may be at risk due to being held in early, less secure addresses, particularly those using the P2PK standard like Satoshi Nakamoto’s holdings.
Is quantum hacking a realistic near-term threat to Bitcoin?
According to the source, quantum computers are not yet readily available outside research contexts, and using them for attacks may be prohibitively expensive in the near term. While quantum algorithms are improving, viable quantum hacking remains far from practical reality.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
NYSE Welcomes Morgan Stanley’s MSBT Launch as First Spot Bitcoin ETF Issued by a Major US Bank
Bank-backed bitcoin ETFs are accelerating institutional adoption and strengthening market credibility. The NYSE marked a new milestone as Morgan Stanley Investment Management rang the closing bell and celebrated the launch of MSBT, which the NYSE described as the first spot bitcoin ETF by a major
Coinpedia1h ago
BTC falls 0.49% in 15 minutes: fragile long leverage and active sell-off pressure resonate to weigh on the short term
From 18:00 to 18:15 (UTC) on 2026-04-17, the BTC price fluctuated and trended downward within the 77097.4 to 77573.2 USDT range. Over these 15 minutes, the return rate recorded -0.49%, and the amplitude reached 0.61%. During this period, market trading was active; short-term volatility was amplified, and trading attention increased significantly. The main driver behind this abnormal move is that the overall leverage structure is bearish and long positions are fragile. At present, the BTC perpetual contract funding rate has remained negative for 11 consecutive days, indicating that the bears have the upper hand in the market. In addition, futures open interest (OI) is about 628.3 billion USDT, which is at a historical high. During the anomaly window, trading volume increased noticeably. On-chain data shows large amounts of BTC flowing from long-term holder addresses to exchanges, suggesting that active sell orders may have triggered longs to passively reduce positions, amplifying downward price pressure. Moreover, institutional positioning enthusiasm in the mainstream contract market has cooled off; liquidity boundaries have tightened, causing large-trade activity to have an amplified effect on market volatility. In the options market, implied volatility rose to 39.81%, increasing demand for downside protection and reflecting a defensive posture among market participants. Macro-environment volatility and some capital flowing into safe-haven assets, together with the recent regulatory uncertainty-related historical events, reinforced the move, pushing overall market risk appetite lower. Current BTC leverage risks still remain. If, in the future, there are concentrated sell-offs, volatility may be further amplified. It is recommended to continue monitoring sustained high OI levels, the persistence of negative funding rates, and on-chain transfers of large amounts of funds, and to stay alert for whale behavior and any disruptions to market sentiment caused by macro-policy developments. For subsequent price action, please watch key support levels, institutional and whale on-chain moves, and relevant global market news, and guard against short-term risks.
GateNews3h ago
Bitcoin Liquidations Hit $815M as BTC Surges Above $78K Amid Iran Strait Opening
Over $815 million in leveraged cryptocurrency positions were liquidated recently, mainly due to short positions against Bitcoin. Markets improved as Iran reopened the Strait of Hormuz and Trump hinted at a deal with Iran, boosting Bitcoin prices significantly.
GateNews3h ago
Cardano Founder Hoskinson Warns BIP-361 Could Freeze 1.7M Bitcoin
Charles Hoskinson warned that Bitcoin's BIP-361 upgrade, meant to address quantum threats, is wrongly classified as a soft fork. It could freeze 1.7 million BTC, including 1 million from Satoshi Nakamoto, as early coin owners can't prove ownership.
GateNews4h ago
BTC drops 0.45% in 15 minutes: Whale concentrated transfers into exchanges stack up sell pressure while leverage withdrawals amplify the pullback
From 17:00 to 17:15 (UTC) on 2026-04-17, BTC saw a brief drop. The return rate recorded was -0.45%, with the price ranging from 77354.3 to 77916.9 USDT and a swing of 0.72%. During the event, market attention warmed up, volatility intensified, and spot market liquidity changed significantly.
The main driver of this price anomaly was that whale wallets concentrated transfers to exchanges. In a single 15-minute period, the exchange inflow surged to 11,000 BTC, reaching a new high since December 2025. The average amount deposited per transaction was as high as 2.25 BTC, indicating that large holders chose key price levels to concentrate and release their positions, clearly lifting sell pressure. At the same time, BTC futures open interest fell to a 14-month low of $841 million, as leverage funds exited sharply. The spot market’s pull on price fluctuations became the main factor, further magnifying the impact of whale trading.
In addition, although ETF funds had a net inflow with a hedging effect—bringing the April cumulative inflow to $5.651 billion—within this anomaly window they were not able to fully absorb large sell orders. The spot market mainly relied on institutional buying to digest the selling pressure, and overall risk appetite contracted. On-chain data shows that 41% of the BTC supply is in a loss-making range, and some holders who bought at lower prices face take-profit and stop-loss pressure. With multiple factors converging, short-term tension formed among exchange inflows, leverage withdrawal, profit realization, and institutions’ ability to absorb, increasing the magnitude of spot volatility.
Short-term risks are worth watching closely. Users should closely monitor core indicators such as the subsequent exchange inflow volume, the pace of ETF net inflows, and futures open interest. If whale sell orders still have not eased and ETF inflows cannot accelerate in step, the BTC price may remain under sustained pressure. Users should focus on on-chain transfers and changes in major holders’ positions, watch the spot market’s key support ranges and trading structure, obtain more market information in a timely manner, and stay alert to risks brought by sharp volatility.
GateNews4h ago
