Attacking bitcoin mining with a quantum computer would require the energy of a star, academics say

Summary

Academics have published papers concluding that attacking the bitcoin blockchain with a quantum computer is energetically infeasible, requiring the energy output of a star, and that previous quantum factoring breakthroughs can be replicated with outdated hardware, mitigating quantum computing risks to bitcoin's security. This research alleviates concerns about the potential vulnerability of bitcoin to quantum attacks, which could have led to a loss of investor confidence and a subsequent price decline. The removal of this risk is likely to have a positive impact on bitcoin's price and the broader cryptocurrency market.

Market Impact

The news is likely to have a positive impact on bitcoin's price, as it reduces the perceived risk of quantum attacks on the blockchain, potentially leading to increased investor confidence and capital inflows into the asset. This could also have a positive effect on the broader cryptocurrency market, as a secure bitcoin network is crucial for the overall health of the crypto ecosystem.

Key Drivers

• Reduced risk of quantum attacks on bitcoin's blockchain
• Increased investor confidence in bitcoin's security

Risks

• Potential for future breakthroughs in quantum computing that could still pose a risk to bitcoin's security
• Overconfidence in bitcoin's security leading to complacency and decreased investment in security measures

Time Horizon

Medium Term