According to a ChainCatcher report, Jefferies strategist Christopher Wood stated in his latest "Greed & Fear" market letter that due to growing concerns about how advances in quantum computing could potentially undermine the long-term security of cryptocurrencies, he has completely removed Bitcoin from his flagship model portfolio. The 10% Bitcoin allocation he first added at the end of 2020 has now been replaced by a combination position in physical gold and gold mining stocks. Christopher Wood added that breakthroughs in quantum computing would weaken Bitcoin's role as a reliable store of value for pension-style investors. If the timeline for quantum technology development shortens, some capital allocators may now question Bitcoin's store-of-value properties. Quantum computers, which may emerge earlier than expected, could allow attackers to derive private keys from exposed public keys, thereby undermining the cryptographic technology that supports Bitcoin balances and mining rewards, and challenging its role as "digital gold" in pension-style investment portfolios.
Jefferies Strategist Removes Bitcoin from Portfolio Over Quantum Computing Risks
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Summary
Jefferies strategist Christopher Wood has removed Bitcoin from his model portfolio as part of a broader shift in portfolio management, citing risks from quantum computing. He had previously allocated 10% to Bitcoin in late 2020, but now prefers gold and mining stocks for portfolio diversification. Wood warned that advances in quantum computing could undermine Bitcoin's appeal for long-term investors in terms of value preservation. The strategist emphasized the importance of portfolio diversification in the face of evolving technological threats.
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