Key Takeaways
- Christopher Wood, a renowned equity strategist at Jefferies, has decided to divest from Bitcoin.
- The decision stems from concerns about quantum computing potentially compromising Bitcoin’s security architecture.
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Jefferies’ Global Head of Equity Strategy Christopher Wood has removed Bitcoin from his model portfolio over fears that advances in quantum computing could eventually undermine its long-term viability as a store of value.
Writing in his Greed & Fear newsletter, Wood said the technology may arrive sooner than expected and poses an existential risk to Bitcoin’s security and mining system.
The Jefferies strategist added Bitcoin to his model portfolio in 2020 and raised the allocation to 10%. He has now exited the position entirely, reallocating to 5% in physical gold and 5% in gold-mining stocks.
About four months ago, Wood argued that both gold and Bitcoin served as core hedges against dollar debasement. He emphasized Bitcoin’s appeal to younger generations but said gold’s centuries-long history gave it an advantage.
While quantum technology remains in early stages, experts note it poses a structural vulnerability to Bitcoin’s protocol if scalable advances materialize.
The move signals that quantum risk is now entering mainstream asset allocation discussions, prompting some institutional investors to reevaluate their crypto exposure.