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Quantum computers threat in Bitcoin... 3 trillion dollars could evaporate
As Bitcoin continues to rise after the US election, Google's introduction of the quantum chip Willow has highlighted the security risk that this technology may pose to digital currencies. Experts say that quantum computers, which can complete a process that would take hundreds of years for a regular computer in just a few minutes, could potentially hack Bitcoin transactions within decades. It is noted that such a hacking event could result in a loss of 3 trillion dollars in the markets.
The rise of Bitcoin with the re-election of Donald Trump as US President has delighted cryptocurrency investors. While Bitcoin prices have hit record highs of over $100,000, they are currently hovering around $94,000.
Digital currencies like Bitcoin use blockchain technology, which is said to be 'unhackable'. It would take thousands of years for computers to solve a single blockchain transaction. That's why hacking blockchain transactions with regular computers is nearly impossible. Nowadays, Bitcoin theft typically occurs when malicious individuals seize wallet passwords.
QUANTUM COMPUTERS POSE A NEW THREAT TO BITCOIN
According to WSJ, this month Google introduced its new quantum computing chip, Willow. With quantum computers that can perform multiple operations at the same time, attention turned to Bitcoin. Experts claim that with the development of quantum technology, which is still in its infancy, Bitcoin transactions could be hacked by hackers in the near future. Such an attack could lower the price of Bitcoin.
Elected president Donald Trump has pledged to create a kind of digital reserve for the government's Bitcoin assets. Quantum computers could enable thieves to attack the potential Bitcoin reserves of the United States.
Quantum computers are still very new. However, researchers say that a quantum device powerful enough to break Bitcoin will likely be ready within the next decade.
Analysts warn that a quantum-supported hack attack on Bitcoin could lead to harmful overflow effects in traditional financial markets.
Arthur Herman, a senior fellow at the Hudson Institute, a Washington, D.C.-based think tank, said, "Here, there's a ticking time bomb waiting to explode when someone has the ability to develop quantum computer hacking and decides to use it to target cryptocurrencies."
The 2022 Hudson Institute study predicted that the quantum hacking of Bitcoin would cause losses of over $3 trillion in crypto and other markets, leading to a deep recession in the market. Since the publication of the study, Herman said that Bitcoin has approached $100,000 and has become an increasingly widespread investment asset.
Google sees the Willow chip it recently introduced as a breakthrough in quantum computing.
HOW DO QUANTUM COMPUTERS WORK?
In regular computers, all data is converted into 'bits' consisting of zeros or ones through electrons. In quantum computers, data is processed by creating 'qubits' with subatomic particles much smaller than electrons.
Quantum computers can perform a task that standard computers can solve in thousands of years in a few minutes. These tasks can include discovering new drugs, making weather predictions, or breaking the encryption used to protect sensitive data. While normal computers perform one operation at a time, quantum computers can perform multiple operations.
That's why it is on the agenda that wallets passwords, which are called "uncrackable" and where Bitcoins are stored, and even blockchain transactions can be easily broken by quantum computers.
In the early days of Bitcoin, including approximately one million coins believed to belong to Satoshi Nakamoto, addresses with public keys were held. According to Galaxy Digital, approximately 1.72 million Bitcoins, with a value of over 160 billion dollars at current prices, are still held in these addresses, which were gradually phased out.
THERE IS STILL TIME TO FIX SECURITY VULNERABILITIES
Some cryptocurrency experts say there is still plenty of time for Bitcoin to address its security vulnerabilities.
Emin Gün Sirer, the founder of Avalanche cryptocurrency, says, "There is definitely a quantum apocalypse on the horizon at some point in the future, but this point is far enough away in time that there is no need to panic."
Bitcoin, more secure by adopting newer encryption formats that cannot be easily broken by quantum computers, but crypto managers say such a revision could take years due to Bitcoin's decentralized nature, changing its technology requires a broad consensus among people worldwide who sustain its network.
Even if Bitcoin becomes resistant to quantum computers, there is another obstacle. Existing Bitcoins also need to be moved to quantum-resistant addresses.
Not investment advice
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