Bitcoin's New Threat Quantum Computers... "Trillions of Dollars in Losses Expected"

Amid growing expectations for the commercialization of quantum computers following Google's recent announcement of quantum chip development, an analysis has emerged warning that quantum hacking (Quantum Hacking: theft acts using quantum technology) could cause enormous losses amounting to trillions of dollars in financial markets, including cryptocurrencies.

On the 22nd (local time), The Wall Street Journal (WSJ), citing data from the U.S. think tank Hudson Institute, reported that quantum hacking could result in losses exceeding $3 trillion in markets including cryptocurrencies and could trigger a severe economic recession.

Arthur Herman, senior researcher at the Hudson Institute, expressed concern, stating, "If someone develops quantum computer hacking technology and decides to target cryptocurrencies, it will be like a ticking time bomb going off."

On the 9th of this month, Google announced the development of the quantum chip 'Willow,' capable of processing calculations that would take 10 years in just 5 minutes, further heightening market expectations for the commercialization of quantum computers.

Quantum computing refers to next-generation technology that utilizes quantum mechanical principles to process calculations at speeds overwhelmingly faster than conventional computers. Unlike traditional computers that use bits which can be either 0 or 1 at a time, quantum computers use qubits that can exist in infinite superpositions of 0 and 1, enabling rapid decoding of information.

WSJ analyzed, "As quantum computing becomes more powerful, Bitcoin will ultimately be at risk of theft." It takes about 10 minutes for the Bitcoin network to confirm the transfer of Bitcoin from one address to another, but quantum computers could potentially steal it within just a few minutes.

Quantum hacking is also considered a factor that could cause Bitcoin prices to plummet. Bitcoin, which surpassed $100,000 for the first time ever on the 5th, dropped to around $95,000 on that day, marking about a 10% decline compared to a week earlier.

Experts emphasize that it may take more than 10 years to develop quantum computing advanced enough to decode Bitcoin, and that countermeasures must be devised during this time. However, WSJ forecasted, "it could take years for Bitcoin to adopt new forms of encryption (to defend against quantum hacking)." Even with broad consensus, it will take considerable time to transfer existing Bitcoins to quantum hacking-resistant addresses.

In particular, quantum hacking targeting Bitcoin is expected to cause far more serious losses across many financial markets compared to traditional hacking methods. This is because the security of traditional financial assets is much more vulnerable than that of Bitcoin.