"Christopher Wood, global head of equity strategy at Jefferies, has eliminated Bitcoin from his flagship Greed & Fear model portfolio, citing concerns that developments in quantum computing could pose an existential threat to the cryptocurrency's cryptographic foundations. In the latest edition of the widely followed newsletter, Wood confirmed that Jefferies has removed its entire 10% Bitcoin allocation, replacing it with a split allocation of 5% to physical gold and 5% to gold-mining equities, according to Bloomberg."
"Despite the strong performance, Wood argues that quantum computing presents a structural risk that cannot be ignored. Bitcoin's security relies on cryptographic algorithms that are effectively unbreakable using classical computers. However, sufficiently powerful quantum machines could theoretically derive private keys from public keys, enabling unauthorized transfers and undermining confidence in the network. Security researchers estimate that roughly 20% to 50% of Bitcoin's total supply - between 4 million and 10 million BTC - could be vulnerable under certain conditions."
The Greed & Fear model portfolio eliminated a 10% Bitcoin allocation and replaced it with 5% physical gold and 5% gold-mining equities, citing rising uncertainty about Bitcoin's long-term store-of-value role amid accelerating technological change. The model originally added Bitcoin in December 2020 and increased to 10% in 2021, during which Bitcoin rose approximately 325% compared with a 145% gain in gold. Concern centers on quantum computing, which could theoretically derive private keys from public keys, enabling unauthorized transfers and undermining network confidence. Security researchers estimate 20–50% of Bitcoin's supply, between 4 million and 10 million BTC, could be vulnerable under certain conditions.
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