Bitcoin’s BIP-361 Proposal to Freeze Satoshi’s Coins Sparks Quantum-Defense Debate

Bitcoin developers have proposed BIP-361 to address the risk that future quantum computers capable of breaking elliptic-curve cryptography could steal dormant assets from early addresses whose public keys have already been exposed. The affected holdings include an estimated 1.1 million BTC attributed to Satoshi Nakamoto, putting cybersecurity defenses in direct conflict with the decentralized principle that assets should be immune from confiscation.

Proposed in 2025, BIP-361 sets out a three-stage migration process. It would first encourage transfers to quantum-resistant addresses, then restrict spending from quantum-vulnerable addresses and ultimately freeze assets that have not been migrated. Market estimates suggest about 5.6 million dormant BTC could be affected. Blockstream CEO Adam Back has urged early preparation, while Cardano founder Charles Hoskinson argues that the measure is effectively a hard fork and could permanently lock Satoshi’s 1.1 million BTC.