Jefferies Drops Bitcoin: Quantum Computing Spurs Shift to Gold

Jefferies' global equity strategist, Christopher Wood, has sounded an alarm over long-term investment in Bitcoin, citing emerging risks posed by quantum computing. In his latest Greed & Fear report, Wood disclosed that a decision has been made to remove the firm's entire 10 per cent allocation from Bitcoin, pivoting towards a more reliable investment strategy focused on gold and gold-mining stocks. While the strategist expressed belief that quantum computing won't impact Bitcoin prices dramatically in the near future, he emphasized the potential vulnerability that could jeopardize Bitcoin's function as a reliable store of value. This strategic shift underscores a recalibration within Jefferies' pension portfolio strategy, seeking to mitigate long-term risks. The debate around Bitcoin's vulnerability to quantum computing has been reignited, with increased focus on the potential of CRQCs to break cryptographic barriers sooner than expected. Given the extensive implications of compromised cryptography in Bitcoin, Jefferies acknowledges the heightened risk, particularly to exchange and institutional holdings, triggering its move towards more traditional assets. (With inputs from agencies.)