“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Crypto News Highlights
- Bitcoin price finds a new range to settle in.
- IBM releases the world’s first commercially available quantum computer known as the Q System One.
- Quantum computing is no threat to Bitcoin explains Antonopoulos
Bitcoin Price hovers in the new range
Over last some days, Bitcoin and the other cryptos have taken a sharp plunge and now Bitcoin sits below USD 4000. While there appear to be no specific reasons for this drop and it looks like this is due to the lack of liquidity inherent in the crypto markets, possibly mixed with some large orders being placed on exchanges.
Considering the fall we saw in mid- November that bought bitcoin from around USD 6000 levels to USD 3000 levels, this small dip which has a total movement of 12% from peak to trough was actually insignificant.
As the charts are currently placed, it seems like the current range is from $3,000 to $5,000 (dotted blue lines). Considering the movement since mid -November, it looks like that bitcoin has opened a new mini-range within that from $5,550 to approximately $4,200 (yellow lines).
IBM’s quantum computer launches sparks debate of its risks to Bitcoin
Recently, IBM launched the worlds very first commercially available quantum computer known as the Q System One. For those unfamiliar, quantum computers think a bit differently than the PCs and smartphones and are much better at solving complex mathematical problems. The release of this new computer instantly piqued the interest of some members in crypto who asked:
“does this new quantum computer threaten bitcoin?”
While there were varied opinions, one of Andreas Antonopoulos’s old videos that were released in Feb 2017 perfectly answers it. One being asked about risk Bitcoin has from quantum computers, Antonopoulos explains,
“In cryptography, there is a 20-30 year lifecycle for an algorithm before it gets exceeded by new technologies and developments in mathematics. Both the signing and hashing algorithms can be upgraded in Bitcoin if there is a need to do that. Quantum cryptography represents a threat only if unevenly distributed in commercial sectors. If it is available to only one actor, and not all actors, they are unlikely to use it against Bitcoin; instead they’re going to keep it secret and use it when they’re threatened by ex. cryptographically secure nuclear weapons.
Intelligence agencies who have that kind of significant computing advantage don’t use it until there is a dire emergency, because once you use it everyone will know you have it. After that all the algorithms get changed, so you better make it good. If it is widely available, all the miners update to quantum computers and we’re going to be looking at several orders of magnitude in improvement because running one is neither free nor easy. We don’t know what the economics will be yet, but we will solve problems when it’s necessary.”
What you think, is quantum computing a threat to bitcoin?