GM to all of you nutcases. It’s Crypto Nutshell #803 lightin’ the path… 🕯️🥜

We’re the crypto newsletter that’s more explosive than a plan that was never supposed to work actually working… 💣😈

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Coinbase forms board to assess quantum computing risks to blockchain

Let’s be real…

The quantum computing threats to crypto are serious.

And those fears are starting to spread through Wall Street…

But now the crypto industry is starting to respond.

On Wednesday, Coinbase announced a new advisory board to study how quantum computers could threaten Bitcoin and Ethereum.

The board includes researchers from major universities, the Ethereum ecosystem, and Coinbase itself.

Their first report is expected in early 2027.

The move comes as big names in finance raise alarms.

UBS CEO Sergio Ermotti told CNBC at Davos that quantum computing's effect on crypto security "still needs to be proved."

Jefferies strategist Christopher Wood went further - he removed Bitcoin from his long-term pension portfolio last week, citing quantum risks.

What's the actual threat?

Bitcoin uses encryption to keep wallets safe.

Today's computers would need trillions of years to crack it.

But quantum computers work differently. In theory, they could break that encryption in hours or days. (The key phrase here is “in theory”)

Research from Chaincode Labs found that 20% to 50% of all Bitcoin could be vulnerable. That's $400 billion to $900 billion at risk.

But the timeline is the big question.

Some researchers say four to five years. Others say eight. Ethereum co-founder Vitalik Buterin warned it could happen before the 2028 U.S. election.

But Bitcoin developer Adam Back says there's no real threat for at least a decade.

Patience is running out

Regardless of how far out the quantum threat truly is, the industry needs to work on finding a solution as soon as possible.

Crypto investor Nic Carter recently led a $20 million investment in Project Eleven, a startup working on quantum-resistant solutions.

"So far I have only seen denial and complacency from the developers," Carter said.

He warned that if Bitcoin developers don't show urgency this year, big investors will quietly start reducing their Bitcoin holdings.

The threat may not be imminent. But the pressure to act is growing. 🚀

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Each year, real estate seems like it’s doing great.

But in Bitcoin terms, it’s doing the exact opposite.

It all depends on what you measure it in.

This week, Rajat Soni tweeted something that hit like a truck:

And his point is simple.

Wealth is moving from people who don’t own Bitcoin to people who do.

But you don’t have to take his word for it. Just look at what median house prices look like when they’re measured in Bitcoin:

That’s what a wealth transfer looks like.

When you change the denominator to Bitcoin, the direction of the wealth transfer becomes obvious.

Be where the wealth is flowing. 🌊

Today we’ll be taking a look at the amount of wallets that hold at least some Bitcoin. (anything greater than 0)

This metric offers a bird’s-eye view of user activity and adoption across the Bitcoin network.

But there’s a slight catch…

One wallet does not equal one user. A user can have many wallets.

What matters here is the trend of the chart.

There are now 57.85 million wallets holding Bitcoin.

That's another 100,000 wallets in just two weeks.

Price has been choppy. Sentiment remains weak. ETF flows are erratic.

And yet the number of holders keeps climbing.

More wallets. More distribution. More resilience.

The network keeps expanding. 💪

Why BlackRock’s Larry Fink wants the entire financial system on ‘one common blockchain’. Larry Fink is bullish on tokenisation. The trend is set to accelerate in 2026. A lack of infrastructure and regulations could hold it back.

Coinbase Forms Advisory Board to Study Quantum Computing and Blockchain. Coinbase has created an independent advisory board to assess how quantum computing could affect blockchain cryptography.

Ark Invest sees bitcoin (BTC) and tokenization driving the next phase of digital asset growth. The asset manager said bitcoin’s institutional adoption and asset tokenization are pushing digital assets toward scale, potentially reaching tens of trillions by decade’s end.

Senate Ag Committee has released its version of crypto market structure legislation — what happens next. Momentum is building behind efforts to pass a crypto bill, though observers say it still lacks the Democratic support needed to become law.

Want to get even smarter? Check these out.

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5 questions. All from this week’s issues. If you’ve been paying attention, you’ll crush it. If you’ve been skimming, it’ll show.

Tap the button below to start this week’s quiz, then tell us how you scored in the poll at the bottom of this newsletter. 👇️

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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.