 ▲ Statue of Satoshi Nakamoto / Photo: Official Satoshigallery X |
Amid growing fears that advances in quantum computing technology could enable the hacking of the massive early-mined Bitcoin (BTC) holdings of creator Satoshi Nakamoto, a groundbreaking technical safeguard has been proposed to prevent a potential chain reaction collapse in the market.
According to cryptocurrency media outlet Bitcoinist on March 8 (local time), Bitcoin developer Hunter Beast recently introduced a new proposal called Hourglass V2 to prevent vulnerable early wallets from being emptied onto the market all at once in the event of quantum attacks.
A report by Chainalysis estimates that approximately $718 billion worth of Bitcoin is currently exposed to the risk of quantum attacks. In particular, the roughly 1.1 million BTC believed to be held by Satoshi Nakamoto are stored in Pay-to-Public-Key (P2PK) addresses, where public keys are exposed, making them especially vulnerable to hacking threats. If a quantum-enabled attacker were to seize and liquidate this vast amount, Bitcoin could face an unprecedented supply shock.
Some have suggested freezing or burning Satoshi’s coins as a solution, but such measures could be perceived as asset confiscation and set a dangerous precedent for Bitcoin’s monetary policy. Hunter Beast’s Hourglass V2 proposal is seen as a compromise that minimizes selling pressure while avoiding these side effects. If activated, the proposal would limit P2PK outputs spent per block to one Bitcoin and completely prohibit the creation of new P2PK outputs to currently unused addresses.
Without such restrictions, attackers could execute more than 6,000 P2PK transactions per block, potentially dumping over 300,000 BTC onto the market within just a few hours. However, under Hourglass V2, P2PK withdrawals would be capped at approximately 144 BTC per day. This would require more than 32 years to liquidate all P2PK coins, dramatically reducing the risk of a sudden market collapse caused by a massive influx of supply.
The proposal applies only to early P2PK addresses used in Bitcoin’s infancy and does not extend to other vulnerable output types, ensuring it does not hinder migration to quantum-resistant addresses. Moreover, even if implemented, original key holders—including Satoshi Nakamoto—would still be able to move their coins normally unless a quantum attacker attempts to exploit the addresses, allowing the mechanism to function strictly as a protective safeguard.
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