Former Mt. Gox CEO Says Cryptocurrencies Cannot Be Upgraded for the Quantum Computing Era

▲ Bitcoin (BTC), Quantum Computer/ChatGPT Generated Image

Mark Karpeles, former CEO of Mt. Gox, has issued a shocking assessment that a large-scale upgrade of the virtual asset ecosystem is virtually impossible, pointing to fundamental limitations in blockchain security systems with the advent of the quantum computing era.

According to a February 22 report by cryptocurrency-focused media outlet U.Today, Karpeles warned that encryption algorithms, which are at the core of virtual asset security, could become useless in the face of quantum computers’ computing power. He explained, “To transition current virtual asset systems to quantum-resistant methods, all users would have to personally move their assets to addresses that apply the new security standards.” Karpeles analyzed that wallets whose owners have lost their credentials or accounts that have remained inactive for long periods would pose the greatest vulnerabilities in this process.

In the Bitcoin (BTC) ecosystem, a significant portion of the total supply remains unclaimed and effectively abandoned. If quantum computers reach a level capable of hacking existing private keys, Bitcoin stored in outdated addresses that have not been upgraded would become easy targets for attackers. Karpeles stated that while it is technically possible to introduce quantum-resistant algorithms, safely transferring all assets within the ecosystem faces physical limitations, making the probability of success extremely low.

As the pace of quantum computing development accelerates beyond expectations, security concerns in the virtual asset industry are deepening. Existing blockchain structures were not designed to withstand the computational speed of quantum computers, making fundamental system changes inevitable. Karpeles added that the security gaps arising during such a transition could become a decisive factor undermining trust in virtual assets.

The virtual asset market now faces the dual challenge of advancing technology while strengthening security. As the threat of quantum computing becomes a reality, practical solutions to protect existing assets are urgently required. Karpeles’ warning, shaped by his experience with the Mt. Gox collapse, calls for a comprehensive overhaul of virtual asset security systems.

Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses resulting from it. The content should be interpreted for informational purposes only.