Bitcoin Could Crash If 5.6M 'Lost' Coins Are Frozen, Experts Warn

A heated debate is shaking the Bitcoin world: should 5.6 million 'dormant' Bitcoin be frozen to protect them from future quantum computers?

What's happening? Bitcoin developers are discussing whether to freeze old Bitcoin that haven't moved in years (dormant coins are Bitcoin that sit untouched in digital wallets). The concern is that quantum computers - super-powerful computers that don't exist yet but might in the future - could steal these coins.

Why it matters: Experts warn that freezing these coins could cause Bitcoin's price to crash dramatically. Samuel Patt, a Bitcoin advocate, explains: "Freezing any coins tells the market that all Bitcoin currently in circulation are conditionally owned." In simple terms, if Bitcoin can be frozen, it's no longer truly yours - breaking Bitcoin's core promise of complete ownership.

The numbers are staggering: • 5.6 million Bitcoin could be frozen (worth over $400 billion at current prices) • This represents about 28% of all Bitcoin ever created • Experts call it potentially the "worst single-day repricing" in Bitcoin history

The dilemma: Some argue quantum computers pose such a serious threat that freezing is necessary. Others insist this would destroy Bitcoin's reputation as "censorship-resistant" money (money that no government or authority can control or take away).

Mati Greenspan, a market analyst, offers a different view: if quantum computers crack old Bitcoin wallets, it would create "the largest bug bounty in human history" - meaning whoever breaks in first gets an enormous payday.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/04/26/freezing-5-6-million-dormant-bitcoin-could-trigger-worst-single-day-repricing