A recent sharp market correction led to $1.7 billion in crypto liquidations within 24 hours, with Bitcoin falling from above $100,000 to $94,100. The crash was triggered by a combination of factors, including Google’s release of the ‘Willow’ quantum computing chip.
However, despite concerns over quantum computing’s impact on crypto security, current threats remain minimal. While the chip’s potential threat to Bitcoin’s security is significant, experts argue that it’s not yet at a stage where it poses a serious threat.
Google’s Willow chip can complete tasks in under five minutes that would take the fastest supercomputers about 10 septillion years. This breakthrough points towards scalable quantum computing. Some crypto community members expressed concerns about the chip’s potential threat to Bitcoin’s security, with one stating that “$3.6 trillion of cryptocurrency assets are, or soon will be, vulnerable to hacking by quantum computers.”
However, experts counter that compromising Bitcoin’s encryption would necessitate a quantum computer with approximately 13 million qubits, far surpassing Willow’s current capabilities of 105 qubits.
The market-wide selloff also led to Ethereum dropping 8% below $3,800. Most altcoins have plummeted by at least 10% within a day. Ripple, Dogecoin, and Cardano bore the brunt of the losses, with XRP declining by 11%, DOGE by 10%, and ADA by 13%.
Despite recent sales, Bhutan remains one of the top five government holders of Bitcoin worldwide, with a current reserve of 11,688 Bitcoin. Unlike most countries that acquire Bitcoin via asset seizure, Bhutan mines its Bitcoin using hydroelectric resources.
While quantum computing is progressing rapidly, it’s not yet at a stage where it poses a serious threat to crypto security. Experts argue that the industry has time to adapt and implement new security measures before such threats become imminent.
Source: https://cryptobriefing.com/crypto-market-crash-leveraged-liquidations