Virtual Assets Attracting Russia's Attention... Bitcoin Recovers to $100,000 [Bitcoin Now]

US-Russia 'Bitcoin Cold War' in Focus
Value Rises as Strategic Reserve Asset
Google Quantum Computer Development and Launch Seen as 'Negative Factor'

Vladimir Putin, President of Russia Yonhap News

Bitcoin prices recovered to $100,000 in the second week of December. This week, signs emerged that Russia might join the hegemony war led by U.S. President-elect Donald Trump.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:12 PM on December 14, Bitcoin was trading at $100,267.77, up 1.08% from the previous session. It rose 1.84% compared to a week ago and increased 11.10% compared to a month ago. The year-over-year growth rate was 136.14%.

Bitcoin prices started in the mid-$99,000 range on December 2 and 8, then showed weakness for three days from the 9th to the 11th. Afterward, it reversed upward and regained the $100,000 level. The recent weakness is believed to have been influenced by news of Google's development of a new quantum computer. Bitcoin’s security is based on public-key cryptography, and if a so-called "supercomputer" quantum computer is developed, it could potentially decode these cryptographic keys and steal wallet owners’ assets.

However, the cryptocurrency industry has dismissed these concerns as "groundless." Global investment bank Bernstein stated in a report on the 10th, "Although concerns have arisen that Bitcoin’s security system might be threatened following Google's unveiling of Willow, it will take decades before this becomes a reality." They added, "Willow is indeed a remarkable advancement in the field of quantum computing, but its performance is still far from being able to attack the highly advanced SHA-256 hashing algorithm." The Bitcoin community is also discussing transitioning to quantum-resistant cryptography to address this issue.

A notable development in the cryptocurrency market this week is Russia’s potential strategic accumulation of cryptocurrencies. According to foreign media including Forbes, Russian state news agency RIA Novosti reported on the 9th (local time) that Anton Tatchev, a member of the Russian State Duma, proposed a plan to strategically stockpile Bitcoin assets in Russia, and a copy of the document was obtained. The "strategic stockpile" of Bitcoin implies that Bitcoin has been recognized as an asset with certain value in Russia, following the United States. Forbes reported, "Trump firmly embraced Bitcoin and cryptocurrencies this year, and it has been leaked that Russia might start a 'Bitcoin Cold War.'"

Institutional investor participation has also become more active. BlackRock, the world’s largest asset management firm, recently recommended a "buy" in a report, stating that "allocating up to 2% of investment portfolios to Bitcoin is reasonable." On December 5 (Korean time), when Bitcoin prices surpassed $100,000, BlackRock’s Bitcoin spot exchange-traded fund (ETF), IBIT, exceeded $50 billion in assets under management (AUM). This was achieved in just 228 days since its launch, much faster than the 1,329 days record set by IEFA, which showed the fastest asset growth among U.S. ETFs.

According to cryptocurrency data provider Alternative, the Fear & Greed Index representing investor sentiment was 83 points (extreme greed) as of that day. This is higher than the previous week’s 75 points (greed). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating extreme optimism.