Developer challenges quantum computing narrative behind Bitcoin's price drop as Ethereum remains stable
Matt Carallo, a Bitcoin developer, argues that the cryptocurrency community is searching for scapegoats to explain Bitcoin's poor performance, rejecting quantum computing concerns as the primary cause.
The notion that Bitcoin's latest price decline stems from concerns about quantum computing doesn't hold water, especially when considering that Ether remains relatively flat, according to Bitcoin developer Matt Carallo.
"I strongly disagree with the characterization that Bitcoin's current price is materially, because of some kind of quantum risk," Carallo told journalist Laura Shin on the Unchained podcast on Thursday.
"If that were true, then Ethereum would be up substantially on Bitcoin," he added. Ether (ETH) is down 58% since a major crypto market crash in early October, trading at $1,957 at the time of publication.
The remarks from Carallo follow claims by numerous Bitcoin supporters who have suggested that concerns surrounding quantum computing's potential impact on the blockchain network have contributed to Bitcoin (BTC) falling 46% from its October all-time high of $126,100 to now trade at $67,162, according to CoinMarketCap.
Ethereum zones in on quantum readiness
Certain Bitcoin community members have criticized the blockchain's development team for failing to act swiftly in implementing quantum-resistant measures, whereas the Ethereum Foundation has publicly stated its commitment to preparedness in this area.
During Wednesday's protocol update announcement, the Ethereum Foundation highlighted long-term post-quantum readiness as a component of its comprehensive security initiative.
While Carallo acknowledged that quantum computing does present long-term challenges for Bitcoin, he emphasized that market participants don't view it as an immediate near-term danger, suggesting instead that the Bitcoin community is simply searching for something to blame.
"There are a lot of Bitcoiners who want to blame something, blame someone for lackluster performance."
According to Carallo, a more plausible explanation for Bitcoin's declining price is that the cryptocurrency is now "competing for capital" in unprecedented ways against emerging technologies like artificial intelligence.
"AI is super capital-intensive," he said, adding that it is a "massive new investment class that is substantially competing for capital."
"There's a lot of interest in value accrual that will happen because of AI in traditional equities," Carallo said.
Bitcoiners are of the opposite opinion
However, not everyone in the Bitcoin community shares Carallo's perspective, as Capriole Investments founder Charles Edwards said at Cointelegraph's LONGITUDE event on Feb. 12, that the risk should be priced into Bitcoin until it becomes quantum-resistant.
"Today, you kind of have to start to discount the value of Bitcoin based on that risk until it's solved," Edwards said.
Meanwhile, entrepreneur Kevin O'Leary told Magazine in December that using quantum computing to crack Bitcoin may not be the most efficient use of the resources, and there is more upside in using the technology for areas such as medical research.
In May 2025, the world's largest asset manager, BlackRock, updated the registration statement for its iShares Bitcoin ETF (IBIT) to warn investors of the potential risks to the integrity of the Bitcoin network posed by quantum computing.