Patrick Shyu, a former tech lead at Google and staff software engineer at Meta with over one million YouTube subscribers, sold all his Bitcoin in June 2026 and warned that the cryptocurrency faces two critical threats. Shyu's sale followed a 50% price crash from approximately $126,000 in October 2025 to the low $60,000s, which triggered liquidations of his leveraged position. He identifies a miner incentive crisis—95% of all Bitcoin is already minted while transaction fees have failed to compensate for declining block rewards—and quantum computing risks that some researchers project could materialize around 2030. Bitcoin's security model depends on miners receiving adequate compensation through newly minted coins and transaction fees, but the block subsidy currently stands at 3.125 BTC and will halve again in 2028, intensifying pressure on the fee market to sustain network security.
Shyu Warns Miner Revenue Crisis Threatens Bitcoin Security
Shyu stated in a recent video that miners secure the network through two revenue streams: newly minted coins and transaction fees. The block subsidy is cut in half approximately every four years and currently stands at 3.125 BTC, with the next halving expected in 2028. He argued that 95% of all Bitcoin is already minted and that the fee economy miners would depend on never materialized. Shyu warned that as fees fade, miners switch off, security drops, and a slow death spiral could set in.
Miner stress is visible in current data. Hashprice, a daily measure of mining revenue per unit of computing power, hovers around $29 per petahash per second this month. Miners absorbed an 18% hashprice crash in late June as Bitcoin's mining difficulty jumped 7.15%. The 2028 halving will reduce the block subsidy to 1.5625 BTC, further sharpening the debate over whether transaction fees can sustain network security.
Quantum Computing Timeline Shifts Toward 2030 as Developers Propose BIP-361
Shyu identified quantum computing as a second threat because a sufficiently powerful quantum machine could use Shor's algorithm to derive private keys from exposed public keys, putting older bitcoin addresses at risk. Timelines vary widely. Venture investor Nic Carter has pointed to a possible Q-Day around 2035, while other research published this year has shifted some planning horizons toward 2030.
Bitcoin developers are weighing quantum fixes. Proposals include BIP-361, a three-phase soft fork that would eventually freeze coins that skip migration to quantum-safe addresses. Starkware's chief product officer has published a scheme for quantum-safe transactions built from existing rules. Analyst Willy Woo has argued the threat is already being met, pointing to surging development activity around the issue. Some academics have concluded that attacking Bitcoin's mining process itself would require the energy of a star.
Shyu Admits Excessive Leverage Caused Liquidation During 50% Bitcoin Crash
Shyu stated that his exit was as much about leverage as protocol design. He admitted using excessive leverage, noting that a small mistake led to dramatic consequences. Bitcoin fell from approximately $126,000 in October 2025 to the low $60,000s this summer, a drawdown of roughly 50% that triggered automatic liquidations of his leveraged position. He described the market as walking on a thin layer of ice.
Shyu stated he suffered massive financial losses but called himself still a long-term bullish investor in the asset class. Critics have noted that Shyu has a history of dramatic reversals, and his warning landed during a week when the market moved in the opposite direction.
FAQ
What did Patrick Shyu warn about Bitcoin in June 2026?
Patrick Shyu warned that Bitcoin faces two critical threats: a miner incentive crisis caused by 95% of all Bitcoin already being minted with inadequate transaction fees, and quantum computing risks that researchers project could materialize around 2030. He stated that as fees fade and miners switch off, network security drops and a slow death spiral could set in.
Why did Patrick Shyu sell all his Bitcoin?
Shyu sold all his Bitcoin in June 2026 after a 50% price crash from approximately $126,000 in October 2025 to the low $60,000s triggered automatic liquidations of his leveraged position. He admitted using excessive leverage and stated that a small mistake led to dramatic consequences and massive financial losses.
What is BIP-361 and how does it address quantum computing threats?
BIP-361 is a three-phase soft fork proposal that would eventually freeze coins that skip migration to quantum-safe addresses. Bitcoin developers are weighing this and other quantum fixes as some researchers project serious quantum computing risks near 2030, while other timelines point to a possible Q-Day around 2035.
