A proposal to freeze dormant bitcoin, valued at $78,389.59, could lead to an immediate repricing, marking one of the worst trading days for the cryptocurrency since its launch in 2009, according to advocates. The debate centers around the risk of theft through quantum computing and whether freezing tokens is the best solution.
Bitcoin developers and industry participants have been discussing the issue, with some arguing that freezing coins would set a precedent and undermine the cryptocurrency's core principles. Others believe that a successful quantum attack would trigger a more severe repricing, and that the system's survival is at stake. The estimated 5.6 million dormant bitcoin, worth roughly $440 billion, are held in wallets that have not been upgraded and are vulnerable to quantum computing attacks.
A Bitcoin Improvement Proposal, BIP-361, has been released, which contemplates phasing out bitcoin's current cryptographic signatures and potentially freezing assets that fail to migrate. However, some maximalists argue that freezing dormant coins is a deeply flawed approach that undermines the cryptocurrency's core principles of immutability, permissionlessness, and no central enforcement.
They believe that there are better ways to deal with the risks posed by quantum computing, such as better tooling and voluntary migration. Others argue that the protocol isn't 'finished' and that bitcoin could evolve to address the quantum risk, just as it has in the past with upgrades like SegWit and Taproot.