Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Elon Musk is raising new questions about Bitcoin’s long-term safety in the face of rapid advances in quantum computing. The Tesla and SpaceX CEO turned to his AI chatbot, Grok, to find out how likely it is that Bitcoin’s SHA-256 hashing algorithm could be cracked by powerful quantum machines.

His question came just as IBM revealed major plans for its next-generation quantum system called Blue Jay, which is expected to reach 2,000 global qubits by 2033.

Grok Predicts Low Risk, At Least For Now

According to Grok, the risk of Bitcoin’s encryption getting cracked by quantum computers is very low over the next five years. The AI estimates the chance remains close to zero during that period.

But when looking out to 2035, the probability goes up slightly—though it still stays under 10%. These numbers are based on expert assessments and current quantum capabilities.

Based on 2025 assessments from NIST, IBM, and expert surveys, the probability of quantum computing cracking SHA-256 (via Grover’s algorithm, reducing preimage search to ~2^128 operations) is near 0% in the next 5 years and <10% by 2035. It requires millions of error-corrected…

— Grok (@grok) August 2, 2025

Musk’s concerns are not coming out of nowhere. Companies like Google and Microsoft are developing their own quantum platforms—Willow and Majorana 1—which have sparked debate over whether cryptocurrencies like Bitcoin could one day be vulnerable to attacks from these ultra-powerful systems.

Right now, most quantum systems only have around 1,000 qubits. That’s far below the millions of error-corrected qubits scientists believe are necessary to break Bitcoin’s cryptographic defenses.

Grok added that stronger algorithms like SHA-3 or SHA-512 could be used as replacements if needed in the future.

Quantum Computers Vs. Blockchain

Meanwhile, according to a recent analysis by global auditing firm Deloitte, quantum computers could soon threaten the security of the Bitcoin blockchain, with around 25% of Bitcoins currently at risk of being stolen through quantum attacks.

Eventually, quantum computers might become powerful enough to break the entire transaction process, the analysts said. To prevent this, the Bitcoin network would need to adopt post-quantum cryptography—an emerging but complex solution currently being explored by cryptographers worldwide.

Image: The Quantum Insider

IBM’s Blue Jay Adds Pressure

IBM’s new system, Blue Jay, will have more than a billion gate operations—something much beyond the capabilities of today’s computers.

It’s part of the company’s larger effort to be at the forefront of quantum computing by the early 2030s. With other industry giants such as Google and Microsoft not far behind, the competition is heating up.

Tesla And SpaceX Both Hold Bitcoin

Musk’s curiosity isn’t just academic. Tesla currently owns 11,500 Bitcoins, worth about $1.3 billion at current prices. SpaceX also holds a sizable amount, reportedly around $850 million worth of BTC. Musk himself has confirmed that he holds Bitcoin in his personal portfolio.

With the extent of those holdings, it is no wonder that Musk would like to get ahead of potential threats. His tweet is seemingly relaxed, but it indicates increased awareness in the tech world about how quantum advances might affect the world of crypto and finance.

Featured image from ABB, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Quantum computing could be the next area of explosive growth in the tech sector. The consultants at McKinsey Digital have estimated that the industry could be worth as much as $1.3 billion by 2035, though there’s a lot of uncertainty.

If that huge number becomes reality, successful quantum computing companies are going to make their investors very happy. Here are two picks to consider buying this month.

Image source: Getty Images.

IonQ is a high-risk, high-reward company

Quantum physics experts Christopher Monroe and Jungsang Kim started IonQ (IONQ 3.68%) in 2015. Six years later, it became the first pure-play quantum computing company to go public.

Since the technology is still in the early stages, and it’s IonQ’s only business, the company isn’t profitable yet. Its revenue nearly doubled to $43.1 million last year, but its costs also increased, leading to a net loss of $331.6 million.

Profitability is likely still several years away. CEO Peter Chapman believes it will happen by 2030 and is projecting sales near $1 billion at that point. Fortunately, IonQ has a strong balance sheet and recently sold $1 billion in common stock, giving it nearly $1.7 billion in cash and equivalents it can tap.

What makes IonQ unique compared to other quantum computing companies is its trapped-ion technology. These computers store data using quantum bits, or qubits for short. The most widely used quantum computing method is superconducting qubits. IonQ’s computers use trapped ions that are controlled with precise laser pulses.

Trapped-ion technology has a few notable advantages. It delivers high fidelity, a term that refers to the accuracy of a quantum computer. One of the major quantum computing challenges is eliminating errors. No company has solved this yet, but IonQ achieved a significant breakthrough in September 2024, when it reported it had the first trapped-ion quantum system to surpass 99.9% fidelity.

Trapped-ion qubits also have longer coherence times. Qubits decay over time and lose their quantum properties. Coherence time refers to the amount of time a qubit can maintain its quantum state. With solid-state quantum computing systems, coherence time is normally measured in microseconds to milliseconds. Trapped-ion systems measure coherence time in seconds to minutes, so it’s a sizable difference.

This doesn’t necessarily mean that IonQ has the best quantum computing method; if so, everyone would be using trapped ions. But it has something different that delivers extremely low error rates. It has also picked up several high-profile contracts, including multiple deals with the U.S. Air Force Research Lab and one with the Department of Defense, making it worth a look for investors.

IBM is a pioneer in quantum computing

Cloud services, software, and artificial intelligence (AI) may be the core businesses of International Business Machines (IBM 1.44%), but the company also has a long history with quantum computing. It started developing quantum computers over 30 years ago and has been responsible for notable advancements.

It released IBM Eagle, the first processor to surpass 100 qubits, in 2021. Its IBM Condor is currently the second-largest quantum computer in the world as measured by qubits.

The company has released a quantum development road map with ambitious milestones. It plans to demonstrate an example of quantum advantage in 2026, which refers to a quantum computer solving a problem faster than any classical computer can. By 2029, it plans to develop Quantum Starling, a fault-tolerant quantum computer — one that can operate even in the presence of errors.

Because of its size and financial strength, the company can invest much more in quantum computing than a start-up like IonQ can. In April, it announced plans to spend $30 billion on the technology and mainframes as part of a five-year, $150 billion pledge to invest in U.S. computer manufacturing.

IBM reported $14.5 billion in revenue and $8 billion in gross profit for the first quarter of 2025, both slight improvements year over year. Its increase in gross profit margin was more impressive, from 53.5% to 55.2%. The tech company ended the quarter with $17.6 billion in cash and cash equivalents, so it’s well equipped to continue building its quantum computing program.

Its share price has already jumped 29% this year, so it has gotten more expensive. However, it trades at less than 27 times adjusted forward earnings estimates, a reasonable valuation.

Quantum computing investments are still speculative. We don’t know when or if such machines will become widely used. With that kind of uncertainty, it wouldn’t be wise to bet the farm on quantum computing, but you may want to add some exposure by picking up shares of IonQ, IBM, or both.

• D-Wave Quantum and other quantum-computing stocks saw big gains Thursday even though there wasn’t much business-specific news.

• Bullish momentum for the broader market helped push the stock higher, and news that Denmark wants to host the world’s most powerful quantum computer boosted valuations in the category.

• D-Wave Quantum is a risky, highly speculative stock, but it could have a space in the portfolios of growth-focused investors.

• 10 stocks we like better than D-Wave Quantum ›

D-Wave Quantum (NYSE: QBTS) stock recorded another day of explosive gains in Thursday’s trading. The quantum-computing company’s share price climbed 13.7% in the daily session amid the backdrop of a 0.5% gain for the S&P 500 and a 0.7% gain for the Nasdaq Composite. The stock had been up as much as 15.5% earlier in trading.

D-Wave Quantum stock continued to surge higher despite little in the way of business-specific news for the company. News that Denmark has aspirations to host the world’s most powerful quantum computer pointed to the potential for a big increase in state-level support for the industry, but it was otherwise a relatively slow news day for quantum stocks. That didn’t stop companies in the space from seeing big valuation gains, and expectations that the Federal Reserve will issue multiple interest rate cuts helped support share price expansions.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Is D-Wave Quantum stock a buy right now?

Charting the progression of the quantum computing space involves an incredibly high degree of guesswork. Even if it’s taken as a baseline assumption that the tech category will continue to see major breakthroughs that pave the way for much wider commercial adoption, determining which companies in the space will wind up being winners involves a huge amount of speculation.

D-Wave is staking a specialized, forefront position in the category and could go on to see massive valuation gains if its quantum-computing machines deliver on their promise and prove to have substantial real-world applications. The company launched its Advantage2 system in May, and its next quarterly report should provide some insight into what demand looks like for the machines. While D-Wave stock looks risky on the heels of its recent valuation run up, it could be a worthwhile portfolio addition for investors who are making exposure to the quantum computing space a key strategic priority.

Should you invest $1,000 in D-Wave Quantum right now?

Before you buy stock in D-Wave Quantum, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $674,281!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

A group of experienced Bitcoin developers has outlined a new proposal to prepare the network for the inevitable threat of quantum computing.

The initiative, led by Jameson Lopp, Christian Papathanasiou, Ian Smith, Steve Vaile, and Pierre-Luc Dallaire-Demers, focuses on safeguarding vulnerable Bitcoin held in older address types that may be compromised by future quantum breakthroughs.

25% of Bitcoin faces quantum computing risk

The proposal noted that around 25% of all Bitcoin eventually could be at risk if a cryptographically capable quantum computer emerges.

According to the developers, these assets are held in addresses that have already exposed their public keys, making them potential targets for these sophisticated computing machines.

Due to this, the developers stressed that this is not a hypothetical issue for the distant future but a serious risk that requires proactive mitigation.

They warned that a successful quantum attack wouldn’t just impact market value; it could severely undermine trust in the network’s ability to function securely. They stressed:

“An attack on Bitcoin may not be economically motivated – an attacker may be politically or maliciously motivated and may attempt to destroy value and trust in Bitcoin rather than extract value. There is no way to know in advance how, when, or why an attack may occur. A defensive position must be taken well in advance of any attack.”

Three-phase strategy for a quantum-safe transition

To prepare for this threat, the team has laid out a three-phase plan to gradually migrate users from quantum-vulnerable addresses to post-quantum secure alternatives.

The first phase would allow Bitcoin to be sent only to new address types called P2QRH, thereby nudging the network toward quantum resilience. This transition is expected to begin three years after the implementation of BIP-360.

The second phase would invalidate all spends from legacy cryptographic signatures, effectively freezing unupdated addresses after a predetermined block height. According to the developers, this could be roughly five years after phase one begins.

The third and final phase would provide a method for users who missed the migration window to recover their legacy funds using zero-knowledge proofs tied to their seed phrases. However, this step is still under research and would be optional.

Community reaction

Jacob Youngman, a Bitcoin commentator, expressed concern that the changes might lead to the confiscation of inactive or legacy-held coins, possibly including those linked to Satoshi Nakamoto.

According to him:

“The best we can do would be to give users an opt-in solution that protects them from quantum computers.”

However, Lopp addressed the criticism, stating that inactive wallets are just as likely to be exploited by malicious quantum actors if no action is taken.

Mentioned in this article

Quantum computing stocks such as D-Wave Quantum (QBTS 5.32%) have been all the rage this year, with many seeing their stock prices soar. Investors are viewing the sector in a similar light to the early days of artificial intelligence. If quantum computing companies are able to commercialize quantum computers that can ideally process much more complex calculations than computers today, you may one day find them in every home and office in America and all over the world.

Stocks can embark on stock splits for all sorts of different reasons. They can happen to successful stocks and underperforming stocks. Is D-Wave Quantum next?

Image source: Getty Images.

What is a stock split?

Before looking at whether D-Wave could be due for a stock split, it’s important for investors to understand what stock splits are and why companies may embark on them.

Stock splits are simply a way for a company to lower its share price and increase the number of outstanding shares, or vice versa through a reverse stock split. Stock splits and reverse stock splits do not change a company’s market capitalization and, therefore, will not change an investor’s equity position if they held shares before one occurs.

Let’s do a quick example with one of the world’s largest publicly traded companies: Tesla. Let’s say you own 100 shares of Tesla, which currently trades slightly under $313 per share, making your total equity position slightly under $31,300. If Tesla were to conduct a three-for-one stock split, you would take the 100 shares and multiply by three, resulting in 300 shares.

Then, to calculate the new share price, you would take the equity position ($31,300) and divide by 300, which equals $104.33 per share. Notice that your number of Tesla shares tripled, while the share price was divided by three. But you still have the same total equity value, and the market cap is the same, so there was no dilution.

A company might conduct a stock split or a reverse split for several reasons. A frequent example occurs when a company’s stock price drops too low. The Nasdaq Composite and New York Stock Exchange require companies that trade on their exchanges to maintain at least a $1 share price for at least 30 business days. If a company fails to meet this requirement, it may eventually be delisted. A reverse stock split can help resolve this conundrum.

Companies that are extremely successful and see their stock prices rise into the hundreds or even the thousands will also use stock splits to bring down their share price and make the stock more attainable for investors. Even though investors can now buy fractional shares, they may be less likely to purchase shares with such a high price tag. A stock split lowers the share price and increases the share count, potentially boosting liquidity.

Is D-Wave Next?

While basic computers use bits to process data, which are the smallest units of digital information, quantum computers use qubits to process data much faster and perform much more complex calculations in a much more efficient manner than computers and humans. If executed correctly, many believe that quantum computers will be able to make huge advancements in nearly every sector, including science, medicine, and finance, to name a few.

D-Wave is one company that has made good progress. The company’s latest model, released earlier this year, features 4,400 qubits and robust qubit coherence, which allows qubits to stay in the quantum state for longer and solve calculations faster and with more accuracy. In fact, D-Wave’s latest quantum technology has achieved a 75% reduction in noise, which can throw off qubits. The less noise, the higher the accuracy.

Due to this success and other signs of general progress in the quantum computing industry, D-Wave has seen its stock soar by over 1,281% in the last year, so investors have crushed it. The stock trades at $16.79 per share and has a market cap of $5.25 billion. Furthermore, D-Wave has a high public float and can be purchased on most common brokerages, such as Robinhood.

D-Wave also recently completed a $400 million at-the-market equity offering, so I don’t see any indication that the company will conduct a reverse stock split anytime soon. D-Wave is in compliance with the New York Stock Exchange’s listing requirements and has a liquid share base.

In the fledgling field of quantum computing, IonQ (IONQ -2.16%) has emerged as one of the leading start-up investment options. It holds key contracts with top players in the quantum computing field, like the Air Force Research Lab, and offers top-notch technology.

Although it’s far from a surefire bet, is this quantum computing start-up the best chance at transforming a meager investment into $1 million? After all, quantum computing has the potential to transform high-powered computing. Let’s take a closer look.

Image source: Getty Images.

1. IonQ’s error correction is among the best

Quantum computing can potentially be an absolute game changer in the high-powered computing world. It lets users tackle problems they’ve never been able to fully model before (like weather patterns and logistics networks), but it also could have massive implications for artificial intelligence (AI). Quantum computing could deliver huge value for whichever company can win the quantum computing arms race, but each competitor must solve a key problem first: errors.

Unlike traditional computing, quantum computing doesn’t have a clear black-and-white answer. While traditional computers use bits to transmit information, which can only be in the form of a 0 or a 1, quantum computing uses qubits. While qubits collapse down to a 0 or a 1 when measured, they can exist in a state between 0 and 1 during the calculation process. This opens up many possibilities within a calculation, which is why quantum computers could perform better at workloads with thousands of possibilities.

The best way most companies have found to deal with this error issue is to let the qubits interact with each other to reduce errors. While many competitors have placed their qubits in a grid-like system to let the qubits interact with their neighbors, IonQ has taken it a step further. They use all-to-all connectivity, which lets every qubit interact with every other qubit. This leads to unparalleled 2-qubit gate fidelity, and IonQ’s process already has greater than 99.9% fidelity.

This shows that IonQ has already made a fantastic start on the most critical problem with quantum computing, which is why it has several key partnerships.

2. IonQ holds several critical contracts

IonQ holds one of the largest contracts in quantum computing with the U.S. Air Force Research Lab, a facility known for testing cutting-edge technologies. This indicates that quantum computing is not just a future technology; it can be used in its current state.

To further support this option, IonQ hardware is available for use on the three major cloud computing providers: Microsoft Azure, Alphabet‘s Google Cloud, and Amazon Web Services. With IonQ’s hardware becoming more widely available, it’s making key progress in this race. If it can differentiate itself from its competitors and start to capture a customer base, it could create a foothold that would be hard to disrupt.

3. There’s a huge market opportunity for quantum computing

To circle back to the original question, can IonQ be a millionaire-maker stock? I’m not sure. There’s a huge market for quantum computing in the future, but it’s not that large right now. IonQ estimates that the market opportunity will reach $87 billion by 2035, but it’s unlikely that one company will capture that complete market share.

Even if IonQ captures 50% of it and generates around $40 billion in annual revenue, that’s still less than another key quantum computing competitor, IBM. IBM is about a $270 billion company — about 27 times the size of IonQ.

So, can IonQ transform $10,000 into $1 million? Likely not. But can IonQ deliver strong stock performance if it wins the quantum computing arms race? Absolutely. However, this is far from a surefire bet, as the field is ripe with potent competition, and IonQ still has years to go before proving commercial relevancy.