Advancements in quantum computing pose a potential threat to Bitcoin’s security. Google’s recent progress with its Willow quantum-computing chip has highlighted the possibility that future quantum computers could break the encryption protecting Bitcoin, enabling hackers to access secure digital wallets and potentially causing significant devaluation.
Researchers estimate that a quantum computer capable of such decryption is likely more than a decade away. Nonetheless, the Bitcoin developer community faces the complex task of upgrading the system to incorporate quantum-resistant encryption methods. Achieving consensus within the decentralized community may be a slow process, and users would eventually need to transfer their holdings to quantum-resistant addresses to safeguard their assets.
A quantum-powered attack on Bitcoin could also negatively impact traditional financial markets, possibly leading to substantial losses and a deep recession. To mitigate such threats, President-elect Donald Trump has proposed creating a strategic reserve for the government’s Bitcoin holdings.
