The claim that "quantum computers will crack Bitcoin encryption" is widely circulated in the industry, but this statement itself is problematic. Bitcoin does not rely on traditional encryption mechanisms to protect assets. The real quantum risk is not in decrypting ciphertext, but in using Shor's algorithm to derive private keys from public keys, thereby forging digital signatures.
Clarifying the misconception: Bitcoin uses digital signatures, not encryption.
There are no encrypted secrets stored on the blockchain. Ownership of Bitcoin is guaranteed through digital signatures and hash commitments, not ciphertext. This is a key distinction that has been overlooked in the industry for a long time.
Adam Back, a senior developer of Bitcoin and the inventor of Hashcash, bluntly pointed out on social media: "People spreading quantum panic need to pay attention: Bitcoin does not use encryption. Learn the basics, or you will expose your ignorance." He further added: "Encryption is