Cardano founder Charles Hoskinson has criticized the latest Bitcoin (BTC) proposal to protect vulnerable assets from quantum-computing threats. The three-step approach touted as a possible lifeline might face another setback due to Satoshi-era coins.
Over $1.7 Million Bitcoin Still At Risk
Hoskinson analyzed developments in the Bitcoin ecosystem, comparing solutions to those of top altcoins. The BIP-361, which seeks to save more than a third of Bitcoin’s supply, approximately worth over $536 billion, has come under scrutiny in recent weeks.
The plan is expected to make all assets quantum-resistant to prevent losses likely to occur in the next five years. However, experts say freezing coins that don’t migrate to quantum-resistant addresses will not solve all problems.
In the coming months, the three-phase proposal will replace older signature schemes. Initially, inflows to quantum-vulnerable addresses will be blocked before legacy coins are frozen. The final phase is more contentious because it allows recovery of Bitcoins that missed their deadlines.
While it’s acceptable to many, it doesn’t account for coins held before 2013. These assets, about 1.7 million BTC, were created before the key generation of BIP-39.
 
“34% of all Bitcoin is vulnerable… and here’s your hard fork here. They don’t want to admit it, but this will require a hard fork. Users with frozen quantum vulnerable funds can construct a quantum safe product to recover funds… that’s a lie! And you know it. 1.7 million coins can’t do that. It’s not possible.”
Hoskinson and other critics noted that the plan could recover some of the assets, making it not an entirely bad proposal. He noted that inaction could result in massive losses if quantum computers breach Bitcoin’s cryptography.
It should be noted that 1.1 million BTC belongs to Satoshi Nakamoto, the blockchain’s pseudonymous creator. According to Hoskinson, if Bitcoin had proper on-chain governance like altcoins, all problems could be solved.
“If you had on-chain governance, you could solve its we have it at Cardano, Polkadot has it. Tezos has it, and it’s a good idea, but we’re shitcoiners. Only you guys have good ideas,” he joked.
The risks of quantum computers to Bitcoin have become mainstream, drawing in warnings from Google and blockchain security firms. Last week, a heated debate broke out on the way forward for dormant coins.
