Bitcoin developers' response to quantum computing's risk to the cryptocurrency is weighing on its price and hurting capital flows, crypto industry executives have argued.
Adam Back, a cypherpunk and co-founder of Bitcoin infrastructure company Blockstream, argued in a series of X posts on Thursday that being “quantum ready” is sweet for Bitcoin (BTC), but that it will not be a threat in the subsequent few a long time since the technology continues to be “ridiculously early” and has research and development problems.
He predicts that there will likely be no risks in the subsequent decade, and even when some parts of Bitcoin's encryption were broken, the corporate doesn’t depend on encryption as a core security model and “is not going to lead to Bitcoin being stolen on the network.”
Source: Adam Back
Quantum computing continues to be discussed as a possible threat to the crypto industry, as theoretically more advanced computers that would break encryption have the flexibility to disclose user keys and leak sensitive data.
Investors are concerned about quantum risk
Nic Carter, partner at enterprise capital firm Castle Island Ventures, responded to Back that it was “extremely pessimistic” that many influential developers “outright deny that quantum risk exists.”
“The disconnect between capital and developers on this issue is big. Capital is worried and on the lookout for an answer. Developers are largely in complete denial. The inability to even acknowledge quantum risk is already weighing on the value.”
Craig Warmke, a member of the Bitcoin Policy Institute think tank, agreed, adding that quantum risk is slowing the flow of capital into Bitcoin and pushing larger holders to diversify.
“When non-technical people raise concerns, they generally use technically incorrect language,” he said, adding that it was “frustrating to see technical people dismissing concerns” as an alternative of addressing the problem of “reduced holdings as a consequence of perceived quantum risk.”
Source: Craig Warmke
Emergency plans must be in place
Aside from the technology still being years away from posing a threat, critics also argue that banking giants and other traditional targets will likely be cracked long before Bitcoin.
Carter claims that firms and even countries are dedicating significant funds to constructing quantum computers, and artificial intelligence helps to speed up development.
In the meantime, Warmke said one of the best ways forward, no matter whether the danger is real or not, is to persuade those who the danger is near zero and to assist create contingency plans within the event that it isn't.
“The only way forward is to develop and converge contingency plans just in case so that individuals feel more comfortable holding Bitcoin,” he added.
