Bitcoin, gold investment news: Jefferies strategist swaps BTC for gold, cites quantum computing risk - CoinDesk

Christopher Wood, Jefferies’ global head of equity strategy, removed a 10% allocation to bitcoin BTC$88,528.78 from his model portfolio, saying advances in quantum computing could eventually weaken the Bitcoin blockchain’s security and, by extension, its appeal as a long-term store of value. Wood reported the change in his “Greed & Fear” newsletter, as reported by Bloomberg, and replaced the bitcoin with a 5% allocation to physical gold and 5% to gold-mining stocks. Wood added bitcoin to the model portfolio in late 2020 and increased exposure in 2021, arguing it could serve as an alternative to gold as governments pumped stimulus into the economy. He is now leaning back toward assets with longer track records. The concern is simple. Bitcoin relies on cryptography to secure wallets and authorize transfers. Current computers cannot realistically break those protections. But future machines exploiting features of quantum mechanics could make it easier to work backward from public information to the private keys that are used to authorize transactions. Read more: Quantum computing threatens the $2 trillion Bitcoin network. BTQ Technologies says it has a defense. Many bitcoin developers say the threat is not near-term. Some, including longtime developer Jameson Lopp, have argued that quantum risk remains years away and any serious transition would take time. “No, quantum computers won't break Bitcoin in the near future,” Lopp said in December, adding that making protocol changes and moving funds to new formats “could easily take 5 to 10 years.” The topic has also begun to attract funding. This week, Project Eleven said it raised $20 million to build post-quantum tooling for blockchains and institutions, including readiness assessments and migration testing. Likewise, Wood’s shift is not a not signal that quantum computing is an immediate threat to bitcoin. It does show that long-term security questions are beginning to influence how some investors think about allocations. KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash. Disclosure & Polices: CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform that provides market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.