Jefferies strategist drops Bitcoin from portfolio over quantum-computing risk

Wood said rapid advances in quantum technology weaken one of bitcoin’s core pillars – its ability to function as a long-term store of value. In his view, the possibility that quantum machines could break the network’s cryptography is no longer a distant or purely theoretical concern.

He noted mounting anxiety across the crypto community: a risk once assumed to be decades away is now discussed in timelines of only a few years. That shift, he argued, changes how conservative investors interpret bitcoin’s role.

Bitcoin depends on cryptography that is effectively unbreakable for today’s machines. Quantum systems, however, could extract private keys from public ones – allowing attackers to seize funds or compromise transaction security. Mining also relies on cryptographic algorithms, meaning a weakness in any major component would undermine bitcoin’s entire claim to being a digital version of gold.

Wood was among the earliest institutional supporters of bitcoin. He added BTC to his model portfolio in December 2020 amid inflation concerns and later expanded the position in 2021. His reversal signals that quantum-computing risk is becoming a mainstream topic within traditional finance.

Discussion over quantum threats intensified after bitcoin’s drop on October 10, 2025. Some developers say the risk is overblown, while others – including Castle Island Ventures’ Nic Carter – argue that developers are “in denial” and that failing to acknowledge the issue is already dragging on the market. Blockstream figures, including Adam Back, dispute those claims.

Wood says the fact that the debate is escalating is itself a meaningful indicator. Persistent uncertainty over cryptographic durability, he argues, strengthens the appeal of gold – an asset with centuries of proof behind it and renewed demand during periods of geopolitical instability.