A new report warns that advancements in quantum computing are rapidly outpacing the cryptocurrency industry's preparedness, posing a significant threat to Bitcoin's encryption. Researchers highlight that while no current quantum machines can break Bitcoin's encryption, the resources required have decreased significantly, potentially shortening the timeline for the industry to transition to quantum-resistant systems. Notably, Google's March 2026 paper estimates that fewer than 500,000 qubits are now needed to break Bitcoin's secp256k1 elliptic curve. The report emphasizes the urgency of proactive planning, as blockchain's public ledger exposes public keys indefinitely, allowing attackers to "collect first, crack later" once quantum capabilities mature. It estimates that 2.3 to 3.7 million bitcoins could be permanently lost due to unmovable wallets, including those believed to belong to Satoshi Nakamoto. While the tech industry has begun deploying post-quantum cryptography, the crypto sector, particularly Bitcoin, faces challenges in governance and migration pathways. Experts suggest a gradual transition to post-quantum signatures to avoid systemic errors.