Appearing on Galaxy Brains, a program hosted by Galaxy Digital’s research director Alex Thorn, Castle Island Ventures Founding Partner Nic Carter offered critical insights into the AI revolution, the threats quantum computing poses to cryptography, and the future of Bitcoin.
The recent acceleration of transition schedules to post-quantum cryptography standards by the US government and global tech giants has intensified security debates within the cryptocurrency ecosystem.
Nic Carter argued that quantum computers and artificial intelligence could threaten classical encryption methods (ECDSA), and that organizations and blockchain networks should embrace the principle of “crypto resilience,” allowing for rapid encryption updates.
Carter claimed that the US government might aim to cripple the Bitcoin (BTC) network in the coming years by using quantum technology as a weapon.
According to Nic Carter, in a Bitcoin scenario where it grows uncontrollably and threatens the global financial system, governments will not hesitate to take radical steps. Carter suggested that if the US government achieves quantum supremacy, it could breach the network’s cryptographic security to seize users’ private keys or render the blockchain network completely inoperable.
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Although Bitcoin’s current encryption infrastructure (elliptic curve cryptography – ECC) offers virtually unbreakable security for today’s computers, theoretically, a quantum computer with sufficient power could breach this protection within minutes.
Carter points out that if the Bitcoin community is late in adopting quantum-- (post-quantum cryptography) updates, it will leave the door open for state-led interventions.
Regarding the future of dormant coins belonging to Satoshi Nakamoto, he predicted that a rescue mechanism could be established, led by the state or the private sector.
In the market segment of the program, Bimnet Abate from Galaxy Trading discussed the Bitcoin price cycle and the macroeconomic outlook. Evaluating Bitcoin’s movement between $58,000 and $65,000, it was argued that cyclical bottoms are being approached very closely, and the risk/reward balance has become quite attractive for medium-to-long-term investors.
*This is not investment advice.