Yesterday, the world was abuzz with news that Google has unveiled a new quantum chip called Willow, which is capable of solving problems that take billions of years for classical supercomputers in just five minutes. This is a huge step forward for quantum computing but raises questions about the security of cryptocurrencies, including Bitcoin (BTC).
Why is this important for the major cryptocurrency? Cryptocurrency uses cryptography to secure transactions. Quantum computers, in theory, can crack public keys and compute private ones. The digital signature algorithms that guarantee the integrity of the blockchain could also be vulnerable to quantum attacks.
I have always maintained that two things could put it into bitcoin. The first is a coordinated central bank attack, not at bitcoin architecture, but in interfering in every way possible with people who own bitcoin. The second which is an existential threat is quantum computing. https://t.co/3DgPRvlMkk
— Peter Brandt (@PeterLBrandt) December 10, 2024
Against this backdrop, legendary trader Peter Brandt broke out with a post saying that he always believed two things could lead to the destruction of Bitcoin. The first is a coordinated attack by central banks, but not on the architecture of the cryptocurrency; it would rather interfere in every way possible with people who own BTC. The second, which is an existential threat, is quantum computing, which is exactly what solutions like Willow could represent.
Not today, Willow
While today’s quantum computers, including Willow, still have high errors and require significant improvements for practical applications, this news is a reminder of the need to consider the risk of quantum computing, because one day we may wake up and Bitcoin will be worth $0.
In addition, information about new quantum chips may be cause for correction. It may be a coincidence, but on the day when this innovation became known, the crypto market fell by 6.85%, losing at least $240 billion in market capitalization, and the losses of liquidated traders amounted to $1.5 billion, according to the lowest estimates.
