Charles Hoskinson of Cardano Claims Bitcoin's Quantum Solution is a Hard Fork that Fails to Protect Satoshi's Coins

Earlier this week, Bitcoin's core developers proposed a solution to defend against quantum attacks by freezing 8 million coins. However, Charles Hoskinson, the founder of Cardano, believes this solution is still insufficient to protect the coins belonging to Satoshi Nakamoto, the network's pseudonymous creator. In a video posted on his YouTube channel, Hoskinson expressed his concerns that Bitcoin's proposed defense against quantum computers is both technically incorrect and structurally flawed, particularly in its inability to safeguard the network's oldest coins, including the approximately 1 million bitcoin attributed to Satoshi Nakamoto. He argued that the proposal, BIP-361, which aims to phase out quantum-vulnerable bitcoin addresses, is being misleadingly presented as a soft fork when it would, in fact, require a hard fork due to its invalidation of existing signature schemes. Hoskinson emphasized that the distinction between a soft fork and a hard fork is crucial, as Bitcoin's development culture has historically opposed hard forks, viewing them as violations of the network's immutability. The BIP-361 proposal suggests that users with frozen quantum-vulnerable funds could reclaim them by constructing a zero-knowledge proof tied to their BIP-39 seed phrase. Nevertheless, Hoskinson argued that this approach is incapable of rescuing approximately 1.7 million bitcoin that predate BIP-39's introduction in 2013, including the roughly 1 million coins associated with Satoshi's early mining activity. These early coins were generated using a different key derivation method, which relied on a local key pool rather than a deterministic seed, making it impossible for their owners to provide the necessary cryptographic proof to migrate them. If the proposal passes in its current form, those coins would remain permanently frozen. Jameson Lopp, the core developer who co-authored BIP-361, has acknowledged that he does not like the proposal and hopes it never needs to be adopted, describing it as a rough idea for a contingency plan rather than a finalized specification. Hoskinson's critique extends beyond the technical details, arguing that Bitcoin's lack of formal on-chain governance leaves the network unable to resolve these tradeoffs through a structured process, forcing contentious upgrades to be negotiated through developer mailing lists and social pressure.