Bitcoin’s rally toward mainstream acceptance faces a long-term threat: quantum computing. According to the Wall Street Journal, recent advancements, like Google’s Willow quantum chip, have sparked concerns that hackers could one day exploit quantum technology to break Bitcoin’s encryption and make wallets vulnerable, which would cause what Emin Gün Sirer, founder of the Avalanche cryptocurrency, call a “quantum apocalypse.”
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While researchers estimate that such risks are at least a decade away, this possibility shows that there is a need for Bitcoin’s community to upgrade its technology before quantum computing evolves even further.
Early Adopters Are Particularly Vulnerable
Quantum computers, which use qubits to perform complex calculations far faster than traditional systems, could crack the cryptographic keys that secure Bitcoin transactions. This poses risks not just to Bitcoin but to traditional financial systems, which also rely on similar encryption methods. Bitcoin’s early adopters are particularly vulnerable since they hold billions of dollars worth of coins that could be easy targets for quantum hackers.
Though quantum-proofing Bitcoin is possible by adopting advanced encryption methods, implementing these changes across the decentralized network would be slow and require global consensus among stakeholders. Additionally, existing Bitcoin holders would need to transfer their assets to quantum-resistant addresses to protect them from future threats. Nevertheless, many experts believe that the industry has enough time to prepare and adapt.
Is Bitcoin a Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a neutral outlook for Bitcoin. Indeed, the summary section pictured below shows that 10 indicators are Bullish, compared to four Neutral and eight Bearish indicators.
