Bitcoin could lose its status as the leading cryptocurrency if its network governance mechanisms prove too inflexible to counter the quantum threat in a timely manner. This was stated by Cardano founder Charles Hoskinson during The Starting Block show.
“The problem with Bitcoin is that it’s stuck in time,” said the speaker.
According to Hoskinson, making changes to the Bitcoin blockchain is extremely difficult. This imperfection once pushed him to participate in the creation of Ethereum, where he is now among the co-founders of the second-largest cryptocurrency by market capitalization, alongside Vitalik Buterin.
Now, this same conservatism could work against digital gold: the quantum threat to an asset valued at $1.3 trillion is not a hypothetical fear but a real risk, emphasized the head of Cardano. Bitcoin will only endure if network governance ensures meaningful progress. However, any unsuccessful hard fork that destroys the asset’s value will inevitably strip it of its market leadership.
“Bitcoin has withstood serious threats—even the departure of Satoshi [Nakamoto] didn’t break it. But quantum computers could be the hurdle it can’t overcome. If the community can’t move forward without compromising fundamental principles, I don’t believe Bitcoin will remain number one,” Hoskinson noted.
Betting on On-Chain Voting
Hoskinson called Cardano the “spiritual successor” to Bitcoin. According to him, the project develops Nakamoto’s ideas that he didn’t have the chance or desire to realize.
The key advantage, according to the expert, is formal on-chain governance. In the event of a threat related to vulnerable cryptography, ADA holders can vote for necessary changes, after which migration will automatically commence.
Currently, the blockchain is preparing for the largest upgrade in its history—Ouroboros Leios. Hoskinson predicted a 60-fold increase in throughput. The Musashi Dojo testnet went live on June 23, with the mainnet release scheduled for late 2026.
Countermeasures
Preparations for the quantum threat have already begun in the Bitcoin community. On July 23, nine companies, including BlackRock, Coinbase, Fidelity Digital Assets, and Strategy, launched a security consortium for the first cryptocurrency. The initiative was allocated $15 million.
The funds will be used to finance independent developers and researchers, as well as to inform the community about the state of blockchain protection. However, the consortium emphasized that computers capable of breaking Bitcoin’s cryptography will not appear for several years.
Similar structures are being formed by other networks. At the beginning of the year, the non-profit Ethereum Foundation formed a post-quantum security team.
Earlier, in December, Hoskinson stated that implementing protection against quantum attacks would slow down blockchains tenfold.
