This isn't a red flag or a warning or anything like that, but every investor should take these risks to Bitcoin into account.

Quantum computers

Scientists are building advanced quantum supercomputers that are developing much faster than expected. If they become powerful enough, they can easily crack the digital locks protecting Bitcoin accounts.

About a 15-20% of all Bitcoins sit in old, untouched accounts (including those of Bitcoin’s mysterious creator), a much larger 34% of all Bitcoin wallets is outdated. Because these accounts use older, weaker security systems, they will be the primary targets for hackers using new supercomputers, potentially crashing the entire market if stolen.

Bitcoin has no central boss or CEO to push an emergency software update. To fix the code to defend against supercomputers, thousands of independent computer owners worldwide must agree, a process that takes years of arguing and moves too slowly for a sudden crisis.

Even if Bitcoin successfully updates its code to be safe from supercomputers, the new security keys will require much larger data sizes. This will clog the network, resulting in massive slowdowns and incredibly expensive fees to make a transaction.

In other words, Bitcoin could show its age, as it could be too slow to keep up with the pace of the technological advancements we have today.

The energy battle

As you may know artificial intelligence requires massive amounts of electricity to run, and so does Bitcoin. Because AI creates clear societal benefits (new medicines, startups, automation etc) governments and power companies are prioritizing AI data centers and actively cutting off or restricting power to Bitcoin operations.

The companies that physically run the Bitcoin network are facing a financial squeeze from rising electricity bills and halving cycles. Many are selling off their Bitcoin holdings entirely to remodel their data centers to host AI computer chips instead.

Because Bitcoin consumes as much electricity as a small country without offering a clear daily utility, it remains a permanent target for politicians. This leaves it highly vulnerable to sudden state-level mining bans, heavy carbon taxes, or laws forcing tech companies to pay massive premiums for grid upgrades.

The hardware battle

AI and Bitcoin are fighting a war over the exact same physical resources. But the thing is only a couple of ultra-advanced factories in the world (like TSMC in Taiwan) have the technology to print high-end computer microchips. Tech giants like Microsoft, Google, and Meta are spending hundreds of billions of dollars to buy up every single inch of factory space to make AI chips (GPUs & NPUs). They have completely dominated the market as they signed long-term, multi-year agreements.

On the other hand, because AI chips are so incredibly profitable to those makers, the factories are prioritizing tech giants as buyers over Bitcoin mining companies. The special chips needed for Bitcoin mining have become much harder and more expensive to manufacture, leaving the Bitcoin industry starved for hardware updates.

Also, building a brand-new data center today takes years because power companies are overwhelmed and so AI companies are looking for shortcuts. AI companies are approaching Bitcoin mining warehouses with an offer they can't refuse, and so major Bitcoin mining companies are actively selling off their Bitcoin machines, ripping them out of the walls, and remodeling their buildings to host AI chips. Bitcoin is literally being evicted from its own physical homes because AI hardware is simply worth more money to the world.