Jefferies Strategist: Removes Bitcoin from Portfolio Due to Quantum Computing Risk Concerns

Odaily News Jefferies strategist Christopher Wood stated in his latest "Greed & Fear" market newsletter that due to growing concerns that advancements in quantum computing could undermine the long-term security of cryptocurrencies, he has completely removed Bitcoin from his flagship model portfolio. The 10% Bitcoin allocation he first added at the end of 2020 has now been replaced with a combined position in physical gold and gold mining stocks.

Christopher Wood added that a breakthrough in quantum computing would weaken Bitcoin's role as a reliable store of value for pension-style investors. If the timeline for quantum technology realization shortens, some capital allocators may now question Bitcoin's store-of-value attributes. Cryptographic-related machines might emerge sooner than expected, enabling attackers to derive private keys from exposed public keys, thereby weakening the encryption technology that underpins Bitcoin balances and mining rewards, and challenging its role as "digital gold" in pension-style investment portfolios. (Bloomberg)