Jan van Eck, the CEO of VanEck, has highlighted potential vulnerabilities in Bitcoin’s encryption and privacy due to the rise of quantum computing. According to van Eck, if Bitcoin’s underlying security is compromised, his investment management firm will consider stepping away from it completely.
“There is something else going on within the Bitcoin community that non-crypto people need to know about,” he stated, suggesting that as quantum technology progresses, the Bitcoin community is questioning the sufficiency of Bitcoin’s encryption.
Van Eck’s firm retains a positive stance on Bitcoin (BTC), recognizing its significance since its inception. However, he warned that they would ‘walk away from Bitcoin if we think the thesis is fundamentally broken.’
As one of the largest crypto asset managers, VanEck offers a variety of Bitcoin products, including a Bitcoin ETF that has attracted over $1.2 billion in investments since its launch early this year.
Bitcoiners Exploring Zcash for Enhanced Privacy
Van Eck also noted that many veteran Bitcoin users are increasingly turning to Zcash (ZEC), a cryptocurrency that focuses on privacy, in pursuit of greater transaction confidentiality. Zcash has increased by over 1,300% recently as interest in privacy coins grows, spurred by a surge in demand for anonymous transactions.
In a related note, cryptographer Adam Back remarked that Bitcoin is unlikely to encounter significant threats from quantum computing for at least another two to four decades.
Market Outlook
Van Eck shared insights about the current market trends, indicating a need to consider Bitcoin in investment portfolios for reasons related to global liquidity and the realities of on-chain activity. He further elaborated on Bitcoin’s historical cycles, explaining that its value has typically faced significant declines every four years, predicting that a major downturn is expected in 2026. He advised investors to engage in dollar-cost averaging during bearish markets, rather than seeking to time bull markets.
As of now, Bitcoin has seen a drop of over 30% from its all-time high earlier this month, before it recently rebounded to around $88,000.
