Quantum computers and artificial intelligence

In the track, some commentators have expressed concern about the possible implications of quantum computing or artificial intelligence developments on the future of Bitcoin.

The actual threat here is the potential ability of computing hardware to pick up private keys to addresses in the blockchain of various cryptocurrencies, essentially breaking data encryption.

A Reddit user stated in a thread that he was afraid he wouldn’t have time to buy more BTC

Quantum computing is a new field of computer science that uses quantum mechanics to solve problems that are beyond the reach of even the most powerful modern computers. Giants like Google are investing billions of dollars in developing a quantum computer, and the first full-fledged device could appear as early as 2029.

However, according to Trezor analyst Lucien Bourdon, “the real threat here is still a long way off.” He noted that the community has already proven its ability to adapt when necessary, and Bitcoin’s decentralised nature allows for the introduction of new algorithms that are resistant to quantum computers.

As Bourdon explained, quantum computers could, in theory, crack some cryptographic systems, which would affect not only Bitcoin but also industries such as internet security, banking and military encryption. Therefore, as the issue grows in relevance, digital asset enthusiasts will clearly be interested in mitigating the risks in this vector.

The increasing likelihood of encryption algorithms being cracked by a quantum computer

Mati Greenspan, founder of Quantum Economics, expressed a similar opinion and emphasised that the BTC network will be able to quickly adapt to new technologies if a serious threat is detected.

As for the risks due to artificial intelligence, Bourdon believes that this technology is more likely to improve Bitcoin’s infrastructure. However, he also cautioned that AI could make phishing attacks by scammers more convincing to victims, which means it’s worth exploring the topic of digital asset security now.

Centralisation of miners and whales

The second cause for concern is the increasing centralisation of resources in the hands of miners and large holders of BTC, the so-called whales. This is a steady support for the development of market manipulation, according to coin enthusiasts.

According to Greenspan, the excessive concentration of BTC in the hands of a few players is indeed able to lead to short-term problems. However, this is likely to be a temporary phenomenon. Here is a quote that Cointelegraph cites.

The invisible hand of the market will always settle things in the long run. The great thing about Bitcoin is that anyone – rich or poor – can buy and sell as much as they want, and at any time.

Distribution of BTC bitcoins to wallets on the network

The head of Oobit, Philip Lord, also previously mentioned that the centralisation of BTC distribution is able to influence the market. However, he emphasised that owning a significant share of bitcoins “does not give direct control over the protocol or the ability to change its code”.

It requires the consent of the majority of nodes on the blockchain. So we are talking about involving most of the participants in what is happening on the network.

The blockchain is too big

Satoshi Nakamoto, the anonymous creator of Bitcoin, limited the size of the BTC block to 1 megabyte. Such a thing was most likely needed to prevent a large number of spam transactions.

Bitcoin Core developers increased this limit in 2017 with the Segregated Witness (SegWit) update, which allowed blocks to scale up to 4 megabytes.

Bitcoin blockchain size growth

And while some blockchains with larger blocks and higher bandwidth can process more transactions per second, this can also affect their decentralisation. The logic here is simple: processing serious amounts of data requires high performance and advanced hardware that not everyone is able to buy. Consequently, this limits the ability of most people to participate in what is happening inside the blockchain.

Bitcoin’s block size growth potential is limited, with the average block size being around 1.8 megabytes. At the same time, the maximum average increase in blockchain size is approximately 250 to 300 megabytes per day.

An entire copy of the blockchain is stored on each full node of the network for synchronisation and transactions. The problem will become more acute when the size of the blockchain becomes too demanding on hardware. However, there is still plenty of time to spare – computer memory is relatively cheap and will only continue to fall in price in the future.

Tough measures to fight anonymity

Reddit users have also expressed concern about the increasing demands for Know Your Customer (KYC) procedures from governments around the world. It involves revealing the identities of cryptocurrency platform users, which clearly goes against Bitcoin’s vision of complete anonymity.

Developers of anonymous cryptocurrencies

According to Bourdon, Bitcoin users often perceive KYC policies as a problem. However, one way or another, they do not pose a direct threat to the crypto itself. He continues.

Users can send and receive funds directly between wallets without the need for authorisation. Over time, Bitcoin’s decentralised nature will surely continue to resist any attempts at strict controls, allowing users to maintain financial independence.

In addition, compromises will have to be made to spread the crypto around the world. These also include co-operating with local regulators to keep exchanges running.

Low rewards for miners

Bitcoin is programmed to cut miner rewards in half every 210,000 blocks or approximately four years, which is also known as halving. The last such procedure took place on 20 April 2024, reducing the reward per block from 6.25 to 3.125 BTC.

Halving on the Bitcoin network

After reducing the reward per block in the future, Bitcoin miners will increasingly rely on transaction fees. While most of their income currently comes from rewards per block mined, these are decreasing every four years.

In the long term, when block rewards become minimal, transaction processing fees will become the main source of revenue for miners, meaning their profitability will increasingly depend on the BTC exchange rate and blockchain user activity.


These concerns definitely deserve the attention of the cryptocurrency community, as some of them, similar to the development of quantum computers, will clearly require a response from developers. At the same time, the current situation for crypto is relatively stable. Well, one of the main threats now remains the struggle of regulators like the U.S. Securities and Exchange Commission with the popularisation of coins and various crypto projects.