Why Quantum Computers Will Never Break Bitcoin – Palm Beach Research Group
In 1940, one genius completed a puzzle in just 20 minutes that shouldve taken him a million years to solve.
His name is Alan Turing.
You may be familiar with Turings story from the 2014 movie The Imitation Game. Benedict Cumberbatch earned a Best Actor nomination for his portrayal of the genius.
If you saw the movie, you know Turing is considered the father of computer science and one of the most important code-breakers of all time.
When World War II broke out in 1939, Turing was assigned to breaking encrypted messages from the Germans.
This was no easy task, as the Germans held the most sophisticated encryption machine at the time, the Enigma.
Credit: ironypoisoning, via Wikimedia Commons
The Enigmas encryption was far greater than anything before its time.
It became clear cracking the code to the Enigma was going to require an even smarter machine. So Turing built one.
It took Turing and his team nearly a year to build a machine that was powerful enough to decrypt Enigmas messages. It was known as the Bombe, and it helped the Allies crack 84,000 Enigma-coded messages each month.
Decrypting messages went from taking potentially a million years by hand to just 20 minutes.
Heres why were telling you this
Last year, IBM debuted its 1,121-qubit Condor processor. Its the most advanced quantum computer to date.
Quantum computers such as the Condor can perform billions of calculations per second. So they can find patterns in data that are invisible to classic computers. They have the potential to revolutionize everything from medicine to engineering.
Many crypto skeptics believe bitcoins defenses will be broken as quantum computers get more powerful And it will share the same fate as the Enigma.
But theres one key mistake that made the Enigma almost certain to fail. And bitcoin doesnt share that flaw
The reason Enigma failed is because once it was built its creators never improved it.
It was only a matter of time before those looking to crack the Enigma would develop better technology.
While the Enigma stood dead in its tracks, Turing made improvements to his decryption machine every day until it became more powerful than the Enigma.
The lesson here is that you always need to push forward. If you dont, the competition will close the gap.
Its a lesson bitcoin developers took to heart.
The bitcoin network was developed with quantum computing mechanics in mind. To combat this, the difficulty to mine the next bitcoin block increases as more computing power comes online.
Take a look at the chart below. It shows the hash power, or computing power, of the bitcoin mining network.
Every year, the computing power that goes into mining a bitcoin block (in other words, processing a transaction) increases.
As mentioned above, IBM released its 1,121-qubit Condor processor in December 2023.
According to the University of Sussex, youd need a quantum computer with 1.9 billion qubits of processing power to break the bitcoin network.
This means youd need 1.7 million of the most powerful quantum computers built today.
IBM believes it can get to 10,000 qubits by 2026. Even then, itll need nearly 200,000 of these machines to crack the bitcoin network.
How long will it take for companies like IBM to build this many machines? Years? Decades?
Plus, if you want to attack the bitcoin network, you need to control 51% of the networks computing power.
Today, one of the best bitcoin miners, the Bitmain Antminer S19 Pro, will cost you $2,200. This machine can generate 110 terahashes per second (TH/s).
The bitcoin network uses roughly 384.33 million TH/s. That means youd need 1.78 million Antminer S19 Pros to overtake the network. Thats over $3.9 billion.
Youd also need to pay for a storage facility to set up these machines. And youd need to coordinate a massive amount of electricity to the building. These machines consume roughly 3,250 watts per hour.
At an average cost of 23 cents per kilowatt, that would cost about $32 million per day.
But even if you spend nearly $4 billion to take over the bitcoin network, youd never be able to extract all $500 billion of its value. The moment that you overtake the network, its value would race to zero.
Its like pirates buying a $4 billion battleship to commandeer a cargo ship carrying $400 million worth of goods. Its not worth the effort.
And thats why the bitcoin network is considered antifragile. It would cost you more to take over the network than the network would be worth.
Every year that bitcoin exists, it moves further and further out of reach of attackers.
So while you might need 1.9 billion qubits of quantum computing processing power to break the blockchain today Youll likely need 3 billion qubits of processing power next year. And 4 billion the following year and so on.
Thats what separates the fatal flaw of the Enigma from the security of the bitcoin network.
When technology like the Enigma just stands still, competition surpasses you.
Bitcoin, on the other hand, is constantly improving its security. Its never satisfied with where its at. Even if it appears to be unbreakable today, it will still be stronger tomorrow.
So when you see quantum computers gaining ground, know that bitcoin isnt standing still.
Thats why the advances of quantum computers arent a threat to bitcoin for the foreseeable future.
So dont let quantum computing fears stop you from owning a stake in one of the worlds greatest assets.
Palm Beach Research Group
View original post here:
Why Quantum Computers Will Never Break Bitcoin - Palm Beach Research Group
- Bill Gates Sees Quantum Computings Potential Arrival in Three to Five Years - The Quantum Insider - February 5th, 2025 [February 5th, 2025]
- 3 Reasons to Buy This Artificial Intelligence (AI) Quantum Computing Stock on the Dip - The Motley Fool - February 5th, 2025 [February 5th, 2025]
- Quantum Computing Stocks Tumbled in January. Should You Buy the Dip? - Yahoo Finance - February 5th, 2025 [February 5th, 2025]
- Quantum algorithm distributed across multiple processors for the first timepaving the way to quantum supercomputers - Phys.org - February 5th, 2025 [February 5th, 2025]
- Exploring the potential for quantum advantage in mathematical optimization - IBM - February 5th, 2025 [February 5th, 2025]
- Google says commercial quantum computing applications arriving within five years - USA TODAY - February 5th, 2025 [February 5th, 2025]
- Japan Teams Up with Intel to Build Next-Gen Quantum Computer - Wall Street Pit - February 5th, 2025 [February 5th, 2025]
- Google Quantum AI Head Sees Commercial Quantum Within Five Years - The Quantum Insider - February 5th, 2025 [February 5th, 2025]
- Quantum teleportation used to distribute a calculation - Ars Technica - February 5th, 2025 [February 5th, 2025]
- IBM claims to have booked $1bn of cumulative quantum business - DatacenterDynamics - February 5th, 2025 [February 5th, 2025]
- Is 2025 the year of quantum computing? - InfoWorld - February 5th, 2025 [February 5th, 2025]
- An Analyst Just Tripled His Price Target On This Quantum Computing Stock - Barchart - February 5th, 2025 [February 5th, 2025]
- Interested in Investing in Quantum Computing Stocks? Here's a No-Brainer Buy. - The Motley Fool - February 5th, 2025 [February 5th, 2025]
- Gates Thinks Quantum May Arrive in 3 to 5 YearsIs Nvidias Huang Wrong? - Wall Street Pit - February 5th, 2025 [February 5th, 2025]
- The tech behind Quantum Generative AI ... - eeNews Europe - February 5th, 2025 [February 5th, 2025]
- These Artificial Intelligence (AI) Quantum Computing Stocks Could Soar in 2025 - The Motley Fool - February 5th, 2025 [February 5th, 2025]
- Japan, Intel said to begin to work on new quantum computer - baha news - February 5th, 2025 [February 5th, 2025]
- Google (GOOGL) Aims to Release Commercial Quantum Computing Apps Within Five Years - TipRanks - February 5th, 2025 [February 5th, 2025]
- Quantum Leap: Is Rigetti Computing the Next Tech Sensation? - Jomfruland.net - February 5th, 2025 [February 5th, 2025]
- Quantum computers new insights into how the universe as we know it could collapse - Cosmos - February 5th, 2025 [February 5th, 2025]
- Cyber Insights 2025: Quantum and the Threat to Encryption - SecurityWeek - February 5th, 2025 [February 5th, 2025]
- The First Step to a Quantum-Safe Future With Samsung Knox - Samsung Global Newsroom - February 5th, 2025 [February 5th, 2025]
- Editorial: Will Technologists Replace Doctors? - HIPAA Journal - February 5th, 2025 [February 5th, 2025]
- The success and failure of quantum computing start-ups - Nature.com - February 5th, 2025 [February 5th, 2025]
- Forget Silicon DNA Might Be the Future of Quantum Computing - SciTechDaily - February 5th, 2025 [February 5th, 2025]
- Scientists Manage to Create Light Particles That Coexist in 37 Dimensions Simultaneously - LBV Magazine - February 5th, 2025 [February 5th, 2025]
- "Commercialization in 3-5 Years" Bill Gates' Remarks Boost Quantum Computer Theme - - February 5th, 2025 [February 5th, 2025]
- Xanadu creates the first-ever scalable photonic quantum computer - Interesting Engineering - January 26th, 2025 [January 26th, 2025]
- Quantum computing could go big this year. Here's a glossary to get you started - Quartz - January 24th, 2025 [January 24th, 2025]
- ZuriQ is rewriting the rules of quantum computing by letting qubits fly - TNW - January 24th, 2025 [January 24th, 2025]
- Is Quantum Computing Investable As The Next AI? - Forbes - January 24th, 2025 [January 24th, 2025]
- The Next Big Cyber Threat Could Come from Quantum Computers Is the Government Ready? - Government Accountability Office - January 24th, 2025 [January 24th, 2025]
- Opinion: The Best Quantum Computing Stock to Buy in 2025 - The Motley Fool - January 24th, 2025 [January 24th, 2025]
- Are trapped molecules the next big thing in quantum computing? - Cosmos - January 24th, 2025 [January 24th, 2025]
- 2 Scorching-Hot Quantum Computing Stocks That Can Plunge Up to 80%, According to 1 Wall Street Analyst - The Motley Fool - January 24th, 2025 [January 24th, 2025]
- Want to Buy Quantum Computing Stocks This Year? 2 Companies That Could Net You Millions in Retirement - The Motley Fool - January 24th, 2025 [January 24th, 2025]
- University of Strathclyde Joins FIRETRACE Project to Overcome Quantum Computing Thermal Challenges - HPCwire - January 24th, 2025 [January 24th, 2025]
- European Commission invests 3M to develop new chip that will help solve quantum computing bottlenecks - Silicon Canals - January 24th, 2025 [January 24th, 2025]
- Researcher: Bitcoin Will Evolve to Meet Quantum Threat - The Quantum Insider - January 24th, 2025 [January 24th, 2025]
- Interlune plans to gather scarce lunar Helium-3 for quantum computing on Earth - SpaceNews - January 24th, 2025 [January 24th, 2025]
- Prediction: Quantum Computing Will Be the Biggest AI Trend in 2025, and This Stock Will Lead the Charge - The Motley Fool - January 24th, 2025 [January 24th, 2025]
- How Will AI and Quantum Work Together? Quantinuums View - HPCwire - January 24th, 2025 [January 24th, 2025]
- 2 Scorching-Hot Quantum Computing Stocks That Can Plunge Up to 80%, According to 1 Wall Street Analyst - Yahoo Finance - January 24th, 2025 [January 24th, 2025]
- Lufthansa Partners with DLR, Kipu Quantum, and Eurowings to Advance Quantum Computing for Air Traffic - The Quantum Insider - January 24th, 2025 [January 24th, 2025]
- Xanadu Develops Aurora, a Modular Quantum Computing System that Shows a Path for Scaling to Very Large Systems - Quantum Computing Report - January 24th, 2025 [January 24th, 2025]
- Why ZuriQ Thinks Quantum Sceptics Are Far Too Gloomy - Forbes - January 24th, 2025 [January 24th, 2025]
- Scientists Investigate Error Mitigation For Logical Qubits as a Path Toward Reliable Quantum Computing - The Quantum Insider - January 24th, 2025 [January 24th, 2025]
- The Risks of Quantum Computing to Cryptocurrency, Bitcoin, and Blockchain - TheStreet - January 24th, 2025 [January 24th, 2025]
- Canadian company Xanadu tests building blocks for commercial quantum computer - The Globe and Mail - January 24th, 2025 [January 24th, 2025]
- Quantum computer helps to answer questions on lattice gauge theory - Phys.org - January 13th, 2025 [January 13th, 2025]
- Quantum computers get automatic error correction for the first time - New Scientist - January 11th, 2025 [January 11th, 2025]
- MicroCloud Hologram Achieves Breakthrough in Quantum-Based Holographic Computing Research - StockTitan - January 11th, 2025 [January 11th, 2025]
- Rigetti Computing to Participate in Fireside Chat at 27th Annual Needham Growth Conference - GlobeNewswire - January 11th, 2025 [January 11th, 2025]
- Rigetti Computing: The Quantum Revolution Is Just Getting Started (NASDAQ:RGTI) - Seeking Alpha - January 11th, 2025 [January 11th, 2025]
- Quantum computing CEO hits back on Jensen Huang's blunt words - TheStreet - January 11th, 2025 [January 11th, 2025]
- Nvidia and quantum computers, Bitcoin seesaws, and the Trump trade: Markets news roundup - Quartz - January 11th, 2025 [January 11th, 2025]
- Veteran analyst who predicted quantum computing stocks rally goes bargain hunting - TheStreet - January 11th, 2025 [January 11th, 2025]
- D-Wave is not happy about the Nvidia CEOs thoughts on quantum computing: 'Its an egregious error' - Fast Company - January 11th, 2025 [January 11th, 2025]
- D-Wave Announces a 120% Increase in Bookings for 2024, the Sale of Its First D-Wave Advantage Processor, and an Agreement to Sell Additional Common... - January 11th, 2025 [January 11th, 2025]
- Quantum? No solace: Nvidia CEO sinks QC stocks with '20 years off' forecast - The Register - January 11th, 2025 [January 11th, 2025]
- For Quantum Companies, Tiny Expectation Shifts Can Lead to Dramatic Price Swings - The Quantum Insider - January 11th, 2025 [January 11th, 2025]
- How Yizhi Yous quantum research could revolutionize computing and STEM education - Northeastern University - January 11th, 2025 [January 11th, 2025]
- Quantum Computing Stocks Are Having a Rough Week. Why the Future Matters More. - Barron's - January 11th, 2025 [January 11th, 2025]
- Why Quantum Computing Inc. Stock Soared a Whopping 1,713% in 2024 - The Motley Fool - January 11th, 2025 [January 11th, 2025]
- Nvidia CEO: Quantum Computers Won't Be Very Useful for Another 20 Years - PCMag - January 11th, 2025 [January 11th, 2025]
- Quantum Computing Stocks Are Having a Rough Week. Investors Should Look to the Future. - Yahoo! Voices - January 11th, 2025 [January 11th, 2025]
- UConn, NORDITA, and Google Reveal Gravity As Both Friend and Foe of Quantum Technology - The Quantum Insider - January 11th, 2025 [January 11th, 2025]
- Artificial Intelligence (AI), Quantum Computing, and RoboTaxis: Here's 1 "Magnificent Seven" Stock That Has It All - The Motley Fool - January 11th, 2025 [January 11th, 2025]
- Saudi Arabia Lays Out Its Strategic Vision For The Quantum Era - The Quantum Insider - January 11th, 2025 [January 11th, 2025]
- Quantum Setback: Stocks Dive as Nvidia Sees a Long Road Ahead - Wall Street Pit - January 11th, 2025 [January 11th, 2025]
- Quantum Computing Stocks, Including IonQ (IONQ) and D-Wave (QBTS), Are Volatile and Mixed - Insider Monkey - January 11th, 2025 [January 11th, 2025]
- NIH explores the world of quantum sensors and how they can help medicine - Federal News Network - January 11th, 2025 [January 11th, 2025]
- Quantum Computing 2025 Is it Turning the Corner? - HPCwire - January 1st, 2025 [January 1st, 2025]
- IBM will release the largest ever quantum computer in 2025 - New Scientist - January 1st, 2025 [January 1st, 2025]
- Betting on the Quantum Buzz: Righetti, D-Wave, and QUBTs Option Explosion - Wall Street Pit - January 1st, 2025 [January 1st, 2025]
- "Impossible" quantum teleportation achieved on normal internet cables - Earth.com - January 1st, 2025 [January 1st, 2025]
- It Takes A Village: Top 10 Quantum Partnerships of 2024 - The Quantum Insider - January 1st, 2025 [January 1st, 2025]
- TQIs 2025 Predictions For The Quantum Industry - The Quantum Insider - January 1st, 2025 [January 1st, 2025]
- Future outlook: The impact of quantum computing on financial services - London Daily News - January 1st, 2025 [January 1st, 2025]
- Quantum computing is finally here. But what is it? - Crain's Chicago Business - January 1st, 2025 [January 1st, 2025]