Bitcoin: This time bomb threatens to destroy the entire cryptocurrency industry

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On paper, the recent breakthroughs observed in quantum computing are extremely promising. We can indeed imagine having a technology in a few years that will allow us to discover new drugs or greatly improve weather forecasts and climate disasters. But these innovations also constitute a little-known death trap for the cryptocurrency industry. Explanations.

An existential threat to Bitcoin

Concretely, and according to the most informed observers on these technologies, quantum computing could allow malicious individuals to break the encryption that protects bitcoin and other cryptocurrencies. A task that would be child's play for these machines, while they would take several human lives for a normal person. If the security of these assets is no longer assured, their value could then collapse.

Quoted by the Wall Street Journal, Arthur Herman, a senior fellow at the Hudson Institute, a Washington, D.C.-based think tank, is blunt:

We have a time bomb waiting to go off if and when someone acquires the ability to develop quantum computing and decides to use it to target cryptocurrencies.

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According to a 2022 study by the Hudson Institute, a quantum hack of Bitcoin could wipe out as much as $3 trillion in cryptocurrency and other markets, effectively triggering a major recession. The worst part is that these estimates are based on 2022 prices where the value of these assets was much lower.

According to experts interviewed by the economic newspaper, traditional finance could also be threatened by advances in quantum computing. But they are convinced that the attacks would primarily focus on the crypto industry.

Skip Sanzeri, co-founder of QuSecure, a start-up specializing in quantum cybersecurity, thus anticipates: “Bitcoin is going to be targeted frantically. Banks have certain regulations, defense mechanisms and the ability to protect their customers, while bitcoin is the Wild West. Your wallet won't refund you if your bitcoins are stolen. »

How to Save Bitcoin ?

Faced with this very real risk, some observers say that the industry still has plenty of time to react because it will take several years to happen. Others are much less optimistic. Indeed, if Bitcoin could be secured thanks to the adoption of new forms of encryption, such an overhaul risks taking a long time. Bitcoin and cryptocurrencies are decentralized by nature and any evolution requires an agreement between these actors who keep this network afloat.

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