Post-quantum cryptography is emerging as a critical frontier for Bitcoin's long-term security infrastructure. A proposal for upgrading the network with quantum-resistant algorithms has gained traction, particularly given concerns about quantum computing's potential threat to current cryptographic standards.

The upgrade framework addresses a significant layer of dormant and potentially lost Bitcoin holdings. Here's the practical breakdown: active participants can migrate their funds to new quantum-resistant addresses through straightforward mechanisms. However, a substantial portion—roughly 20-25% of all Bitcoins in circulation—remains locked in early protocol implementations like P2PK addresses, where owners are either inactive or have lost access. These holdings would face vulnerabilities in a post-quantum computing era.

This isn't just theoretical posturing. The technical feasibility of implementing post-quantum cryptography on Bitcoin has moved beyond academic debate. The challenge lies in balancing network security enhancements with the practical reality that a quarter of Bitcoin's supply exists in a state where immediate migration becomes impossible. It's a technical puzzle that forces the community to confront hard choices about backward compatibility and security priorities.