Quantum stock is soaring on the back of a new story that could cast a shadow over Bitcoin and other crypto markets.
summary
- Quantum stocks are rising on reports that the Trump administration may acquire stakes in major companies.
- The news comes just one day after Google reported a breakthrough in quantum computing.
- However, this story poses significant risks to Bitcoin and other blockchains.
The quantum computing story is gaining momentum as Wall Street chases a new technology boom. Quantum stocks rose on Thursday, October 23rd, following reports that the Trump administration may take stakes in major companies. However, this story also has serious implications for Bitcoin and other crypto assets.
The Journal reported that several quantum companies are in talks to receive federal funding in exchange for giving equity to the Commerce Department. The report mentions IonQ, Rigetti, and D-Wave, whose stock prices rose by double digits.
Additionally, this spike came just one day after Google announced Quantum Echoes, a quantum algorithm development. According to the tech giant, the algorithm was able to simulate molecular and chemical structures 13,000 times faster than traditional supercomputers.
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Could quantum computing threaten Bitcoin?
Breakthroughs in quantum computing could contribute to significant advances in science and technology, including medicine and AI. However, it also poses significant risks for blockchain systems that rely on cryptography.
In particular, due to their speed, quantum computers have the potential to compromise any part of the blockchain ecosystem through brute force attacks. Proof-of-work networks such as Bitcoin (BTC) and Monero (XMR) can also be vulnerable to 51% attacks because the cost of solving the cryptographic equation decreases.
Additionally, attackers can carry out large-scale crypto wallet attacks, leading to a loss of trust in blockchain technology. According to Naris Protocol’s David Carvalho, hackers and state actors are already poised to exploit these quantum vulnerabilities.
Quantum computers are not currently cracking Bitcoin wallets, and may not be able to do so within the next 10 years. However, the market’s increased focus on quantum computing has the potential to spread a dangerous narrative against blockchain technology.
read more: Trezor rolls out first quantum-enabled hardware wallet with transparent secure element
