Bitcoin's encryption and privacy might be compromised by quantum computing, however it's still a great investment for now, says Jan van Eck, CEO of investment manager VanEck.
“There’s something else happening within the Bitcoin community that non-crypto people must learn about,” van Eck told CNBC on Saturday. “The Bitcoin community has asked itself: Is there enough encryption in Bitcoin? Because quantum computing is coming.”
He said that the corporate believes in Bitcoin (BTC), however it existed before the cryptocurrency was introduced and “we are going to move away from Bitcoin if we imagine the thesis is fundamentally disproven.”
VanEck is one in all the world's largest crypto asset managers and has several Bitcoin products, including a spot Bitcoin exchange-traded fund within the US that has seen over $1.2 billion in inflows since its launch in early 2024.
Jan van Eck talks in regards to the risk of quantum computing. Source: CNBC
Bitcoiners seek more privacy at Zcash
Van Eck said that many Bitcoin “OGs or Maxis” on the lookout for more privacy for his or her transactions have considered Zcash (ZEC), a privacy-focused token.
Zcash has surged over 1,300% up to now three months because the market quickly embraces privacy tokens amid renewed interest in anonymous crypto transactions.
Cryptographer and cypherpunk Adam Back said earlier this month that Bitcoin is unlikely to face a big threat from quantum computing for the subsequent two to 4 many years.
Bear market is priced in
Van Eck concluded that the four-year cycle is currently priced in and really useful dollar-cost averaging into bear markets quite than chasing bull markets.
He said Bitcoin “absolutely” must be included in investor portfolios for “general global liquidity reasons” and “on-chain reality.”
He briefly explained this halving cycle, adding that over the past decade, Bitcoin has had an enormous negative 12 months every 4 years, “and in 2026 there may be purported to be an enormous negative 12 months,” and investors have been preparing for this downtrend.
“Every cycle is different. What is clear to everyone seems to be that Bitcoin has risen less on this cycle and plenty of people imagine it should fall less within the correction.”
Bitcoin has lost greater than 30% since its all-time high in early October, bottoming out at just over $82,000 on Friday before recovering to hit $88,000 in early trading on Monday.
