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Over a Third of Bitcoin Supply Has On-Chain Public Keys Exposed

Visible public keys open the door to private-key discovery by a powerful quantum computer, risking theft of those coins.

Overview

  • Two independent on-chain analysts report roughly 35.4–35.6% of Bitcoin supply—about 7.12 million BTC—has public keys visible on the blockchain, a sharp rise from about 24.8% in early 2021.
  • Glassnode attributes the bulk of the exposure to address reuse (25.8%) and custody practices at exchanges (11.6%), while independent ChainQuery data closely matches Glassnode’s totals.
  • Some exposed balances are structural and cannot be fixed by users: legacy pay-to-public-key outputs hold about 1.71 million BTC and Taproot-related outputs about 222,000 BTC.
  • The immediate, practical mitigation is operational: move coins off reused addresses to freshly generated ones and direct new deposits to fresh addresses, while custody providers build tools to track and reduce exposure.
  • Developers have circulated draft protocol responses—BIP 360 to hide keys using pay-to-Merkle-root outputs and BIP 361 to phase signature migration—yet no binding migration plan exists and no quantum computer today can execute the attack these measures defend against.