Bitcoin Faces Security Budget and Quantum Risks; L1 Tokens Could Hedge Against BTC, Says Alliance DAO Co-Founder QwQiao

COINOTAG News, December 2, reported that QwQiao, co-founder of Alliance DAO, shared thoughts on social media about L1 ecosystems. He suggested that when an L1 token develops into a non-sovereign store of value, its price may reflect fundamentals rather than hype, and it could serve as a meaningful hedge against Bitcoin cycles.

He warned of potential long-term risks to Bitcoin, naming a tightening security budget and evolving quantum resistance as areas of concern over decades. While acknowledging that Bitcoin remains the strongest non-sovereign currency and the most likely candidate to replace gold, he implied investors might diversify into L1s for diversification and resilience.

Earlier remarks cited the absence of a durable moat around some L1s as a hurdle for long-term ownership, underscoring the need for tangible network effects and robust on-chain value capture to sustain demand.