The firm’s senior financial strategist is concerned the advancements in the field of quantum computing will break Bitcoin.
Senior financial strategist Christopher Wood said in the latest issue of the GREED & Fear newsletter that he’s removing the 10% Bitcoin allocation from his recommended portfolio. He justified this move by saying that advancements in quantum computing pose a threat to the cryptocurrency’s cryptographic protections, thus undermining its argument of durability through network security. According to Bloomberg, Wood recommends replacing Bitcoin with an investment with a 5% allocation to physical gold and another 5% set for gold mining stocks.
Wood, who is the Global Head of Equity Strategy at the global investment banking firm Jefferies, first included Bitcoin in his sample portfolio in December 2020. He then grew it to 10% in 2021, citing the fear of inflation because of the stimulus checks the government released during the height of the Covid-19 pandemic. However, advancements in quantum computing have long-term investors concerned about its implications, especially for cryptocurrencies.