Urgent warning issued on Bitcoin future even as crypto market price surpasses $ 2 trillion

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Bitcoin and cryptocurrencies have seen a huge resurgence in the past year following the so-called brutal crypto winter that began in 2018.

The price of bitcoin has reached all-time highs this year, surpassing $ 60,000 per bitcoin before falling back slightly. Other smaller cryptocurrencies have grown at an even faster rate than bitcoin, with many making percentage gains in the thousands.

Now, as bitcoin and cryptocurrencies begin to carve out a place among traditional assets in investor portfolios, technologists have warned that advances in quantum computing could mean that the encryption that underlies bitcoin is “fundamentally” undermined by 2026, unless the software is updated.

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The price of bitcoin has risen by several hundred percent in recent years, but quantum computing … [+] could spell the end of bitcoin and cryptocurrencies unless urgent action is taken.

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“Quantum computers, which are expected to be up and running by around 2026, will easily undermine any blockchain security system because of their power,” said quantum crypto firm Arqit founder David Williams, speaking on the phone. Arqit is preparing for a SPAC registration in September in New York.

“There has to be a little more urgency,” adds Williams.

Quantum computing, which sees traditional computer “bits” replaced by quantum particles (qubits) capable of computing information at dramatically increased speed, has been in development since the 1990s. Researchers from universities around the world are now on the cusp of creating a working quantum computer, with search giant Google and scientists at the University of New South Wales in Sydney, Australia recently making headlines with breakthroughs.

Williams, pointing to problems previously identified by ethereum co-founder and cardano creator Charles Hoskinson, warns that upgrading to post-quantum algorithms “will significantly slow blockchains” and called on blockchain developers to adopt quantum encryption keys.

“Blockchains are actually fundamentally flawed if they don’t deal with the coming quantum age. The adults in the room know what’s coming.”

Others have also started working to advance bitcoin and other blockchains ahead of quantum computing.

“If this is not resolved before quantum computers pose a threat, the impact would be enormous,” said Duncan Jones, head of quantum cybersecurity at Cambridge Quantum Computing, speaking via email. “Attackers could create fraudulent transactions and steal currency, as well as potentially disrupt blockchain operations.”

Earlier this month, Cambridge Quantum Computing, along with the Inter-American Development Bank and Tecnolgico de Monterrey, identified four potential threats to the blockchain networks posed by quantum computers and used a layer of post-quantum cryptography to help protect them.

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“Time is running out here,” Jones said, noting Google CEO Sundar Pichai’s prediction that the encryption could be broken in as little as five to ten years. “It is important that decentralized networks start this migration process quickly, as it requires careful planning and execution. However, I hope that the main developers behind these platforms understand the issues and will fix them.

Recently, it was reported that China is leading the way in the global quantum race, which Williams fears will undermine traditional and crypto markets to the same degree as the 2008 global financial crisis.

“On day one, creating a quantum computer doesn’t break everything,” says Williams. “It will likely happen in secret at first and information will slowly be released that the crypto has been broken. Then there will be a complete loss of confidence, similar to how the global financial crisis saw confidence in the system will disintegrate. “

With over 11,000 different cryptocurrencies now listed on crypto data website CoinMarketCap, and competition between bitcoin and other major cryptocurrencies reaching its peak, additional protection against the coming quantum revolution could be beneficial.

“If a blockchain company could provide proof that it is quantum safe, that would have an advantage,” says Williams.

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