Jan van Eck says quantum computing could threaten Bitcoin's encryption and privacy, and his firm “will walk away” if it’s “fundamentally broken.”

Bitcoin’s encryption and privacy could be at risk from quantum computing, but it is still a good investment for now, says Jan van Eck, CEO of investment manager VanEck.

“There is something else going on within the Bitcoin community that non-crypto people need to know about,” van Eck told CNBC on Saturday. “The Bitcoin community has been asking itself: Is there enough encryption in Bitcoin? Because quantum computing is coming.”

He said that the company believes in Bitcoin (BTC), but it was around before the cryptocurrency launched and “will walk away from Bitcoin if we think the thesis is fundamentally broken.”

VanEck is one of the world’s largest crypto asset managers and has multiple Bitcoin products, including a spot Bitcoin exchange-traded fund in the US that has taken in over $1.2 billion in inflows since launching in early 2024.

Jan van Eck speaking on the quantum computing risk. Source: CNBC

Bitcoiners eye Zcash for more privacy 

Van Eck said that a lot of Bitcoin “OGs or maxis” have been looking at Zcash (ZEC), a privacy-focused token, in their search for more privacy for their transactions.

Zcash has soared by over 1,300% in the past three months as the market has rushed to embrace privacy tokens amid a renewed surge in interest for anonymous crypto transactions.

Cryptographer and cypherpunk Adam Back said earlier this month that Bitcoin is unlikely to face a meaningful threat from quantum computing for at least two to four decades.

Bear market being priced in

Van Eck concluded that the four-year cycle is being priced in right now, recommending dollar-cost averaging into bear markets rather than chasing bull markets.

Related: IBM claims major leap toward quantum computers with new chips

He said Bitcoin “for sure” needs to be included in investor portfolios due to “mainstream global liquidity reasons,” and the “onchain reality.” 

He briefly explained that halving cycle, adding that every four years over the past decade, Bitcoin has had a big negative year, “and in 2026 it’s scheduled to have a big negative year,” and investors have been pre-positioning for this bearish move. 

“Every cycle is different. What’s obvious to everybody is that Bitcoin has gone up less this cycle, and so many people think it will go down less in the correction.”

Bitcoin has lost more than 30% since its early October all-time high, bottoming out at just over $82,000 on Friday before recovering to tap $88,000 in early trading on Monday.