Will the next era of computing break the Bitcoin price or boost it?

Cryptos have taken a beating over the past months as interest rates around the world ratcheted higher. But is there a bigger threat looming over the crypto-sphere?

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published August 15, 2022 3:31 pm AEST

The Bitcoin (CRYPTO: BTC) price is up 1% over the past 24 hours to US$24,823 (AU$34,925).

With the latest nudge higher, the world's number one crypto is up 6% over the past week. Though BTC remains down 48% year-to-date.

That's the recent price action.

But is there a bigger threat ahead that could send the Bitcoin price plummeting?

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities. — Image source: Getty Images

What impact will quantum computing have on the Bitcoin price?

The next era of computing, quantum computing, isn't quite here yet. But it draws inexorably nearer.

And, barring any Terminator-inspired fears of a dominating Skynet, the massive leap forward in supercomputing power should, eventually, bring equally massive benefits along with it.

As for the Bitcoin price, in its current form, the blockchain powering the crypto would be vulnerable to any hackers with access to a quantum computer.

To fix those vulnerabilities is "a big, big job", says David Treat, co-lead of Accenture's blockchain business.

And it's not just Bitcoin. Every crypto would currently be vulnerable to quantum computing decryption.

According to Treat (courtesy of The Age):

The advancement of quantum does challenge our existing encryption … but every advancement is as applicable to offence as it is defence. For anything new that we're building now, we're already very much considering what the post-quantum cryptography requirements will be. The standards for that are just now emerging.

However, everything that currently exists right now will need to be retrofitted. And that is a big, big job.

And if crypto investors don't want to see the Bitcoin price get walloped, Treat says the developers will need to get prepared for the coming reality of quantum computers before those with malicious intent do.

"We think there's real urgency around being prepared. If good guys develop it first, they will announce it," Treat said. "If a bad actor is the first one to get there, I'm not sure they're going to announce that, instead we'll just start to see the impacts of it. So getting ready is super important."

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