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Quantum stocks are soaring on a new narrative that could cast its shadow on Bitcoin and the rest of the crypto market.
Summary
- Quantum stocks are rising after reports that the Trump administration could take stakes in major firms
- The news comes just one day after Google reported a quantum computing breakthrough
- However, this narrative creates a significant risk for Bitcoin and other blockchains
The quantum computing narrative is picking up steam as Wall Street chases the new tech craze. On Thursday, October 23, quantum stocks rallied on reports that the Trump administration may take stakes in major companies. However, the narrative also has serious implications for Bitcoin and other crypto assets.
WSJ reported that several quantum companies are discussing federal funding in exchange for giving equity stakes to the Commerce Department. The report mentioned IonQ, Rigetti, and D-Wave, which saw their shares rise by double-digits.
What is more, this surge came just one day after Google disclosed a quantum‑algorithm development, Quantum Echoes. According to the tech giant, the algorithm was able to simulate molecular and chemical structures 13,000× faster than any classical supercomputer.
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Can quantum computing threaten Bitcoin?
The breakthroughs in quantum computing can contribute to significant advances in science and technology, including medicine and AI. However, they also pose a significant risk for blockchain systems, which rely on cryptography.
Notably, due to their speed, quantum computers could compromise every part of a blockchain ecosystem through brute force attacks. Proof-of-work networks like Bitcoin (BTC) and Monero (XMR) could also be vulnerable to 51% attacks, as the cost of solving cryptographic equations drops.
Moreover, attackers could perform crypto wallet attacks on a massive scale, leading to a loss of trust in blockchain technology. According to David Carvalho of the Naoris Protocol, hackers and state actors are already positioning themselves to exploit these quantum vulnerabilities.
Quantum computers aren’t cracking Bitcoin wallets today, and may not do so even in the next decade. However, the market’s increasing focus on quantum computing has the potential to spread a dangerous narrative for blockchain tech.
Read more: Trezor rolls out the first quantum-ready hardware wallet with transparent secure element
