SKN | Bitcoiners Propose Freezing Quantum-Vulnerable Coins in Controversial BIP-361

Key Points

• BIP-361 proposes freezing quantum-vulnerable Bitcoin.
• Targets ~1.7 million BTC, including Satoshi’s holdings.
• Plan sparks major debate over Bitcoin’s core principles.

A new proposal, BIP-361, led by Jameson Lopp and other researchers, aims to protect Bitcoin from future quantum computing threats by freezing coins stored in vulnerable address formats. The concern centers on early cryptographic structures that could be broken by sufficiently advanced quantum computers, potentially exposing private keys.

$74 Billion Satoshi Stash at Risk

The proposal highlights that roughly 1.7 million BTC—worth tens of billions of dollars and including holdings attributed to Satoshi Nakamoto—remain in older address types that are not quantum-resistant. If compromised, these coins could be stolen and reintroduced into circulation, potentially destabilizing the market and eroding trust in the network.

Three-Phase Migration Plan

BIP-361 forms part of a broader roadmap following BIP-360, which introduced quantum-resistant address formats. The plan includes a phased transition: first restricting new transactions to secure address types, then eventually invalidating old cryptographic signatures. Coins left in vulnerable addresses after a set period would effectively become frozen and unspendable.

Incentives Designed to Force Upgrades

The authors frame the proposal as a “private incentive to upgrade,” arguing that removing vulnerable coins from circulation would benefit remaining holders by reducing supply risk. In contrast, allowing those coins to be stolen via quantum attacks could flood the market and damage Bitcoin’s value and credibility.

Community Pushback Intensifies

The proposal has triggered strong reactions within the Bitcoin community. Critics argue that forcibly freezing coins represents a significant departure from Bitcoin’s core principles of immutability and self-sovereignty. Some see it as a form of confiscation, raising philosophical and ethical concerns about protocol governance.

Security vs Ideology Debate

At its core, the debate reflects a growing tension between security and decentralization. While quantum threats remain theoretical for now, BIP-361 forces the community to confront a difficult question: should Bitcoin proactively defend against future risks, even if it means altering long-standing rules about ownership and control?