Jameson Lopp Advocates for Burning Quantum-Vulnerable Bitcoins Instead of Recovery

Jameson Lopp, co-founder of Casa, expressed his opposition to the idea of recovering lost bitcoins through quantum computing, suggesting instead that they should be destroyed.

With the advent of quantum computers capable of compromising older address formats of the first cryptocurrency, such as P2PK, there arises the possibility to retrieve lost coins. This includes nearly 1 million BTC attributed to Satoshi Nakamoto, as well as 7,500 BTC thought to be on a hard drive discarded by British citizen James Howells.

Some estimates suggest that up to 35% of the total supply of the first cryptocurrency is no longer accessible.

While several experts do not view the recovery of these coins through quantum computing as problematic, likening it to mining, Lopp argues that restoring access to lost assets contradicts fundamental principles of digital gold—namely censorship resistance, transaction immutability, and conservatism.

«Allowing quantum recovery of bitcoins is akin to wealth redistribution. It would enable the transfer of cryptocurrency from those unaware of quantum computing to those who have won the technological race,» he noted.

Lopp also pointed out that many existing addresses with significant balances are at potential risk.

He believes it is essential to allow everyone to migrate their funds to quantum-resistant addresses and, after a specified period, freeze all assets at risk of hacking.

Lopp referenced a statement from Satoshi Nakamoto, indicating that lost bitcoins enhance the value of the remaining coins. Therefore, he emphasized, the recovery of these assets would dilute the worth of the first cryptocurrency.

«I personally am not interested in rewarding those capable of working with quantum technology by inflating the money supply simply because some individuals lost their keys long ago, while others fail to improve the security of their bitcoin wallets. We can hope this scenario never materializes, but hope is not a strategy,» concluded Lopp.

It is worth noting that in October 2024, Chinese researchers conducted «the world’s first effective attack» on widely used encryption algorithms using a quantum computer.

Subsequently, experts claimed that the aforementioned threat to cryptocurrencies has been exaggerated.