Email of the day on Cryptocurrencies and quantum computing from one of Iain Little's clients:
Comment of the Day

October 24 2019

Commentary by Eoin Treacy

Email of the day on Cryptocurrencies and quantum computing from one of Iain Little's clients:

Yep very well thanks, I'd say the Google quantum computing is all FUD, i.e. see here:

Even if quantum came anywhere close to being able to break SHA256's cryptographic hash function, which actually “can’t” happen without a mathematical insight that makes it possible (because it requires too much work or too much luck), then the majority of those running the nodes would just vote for a hard fork by the devs to a stronger format like SHA-3  there would be consequences for old coins that weren't moved but bitcoin would adapt and survive. Also, all current banking, military etc. use this same SHA256 as far as I know so the world would have way more to worry about than bitcoin if it was ever broken.

Here's some more stuff going on if reasons for the current drop in bitcoin's price were needed:

But it could just as easily be normal market volatility, the price is still about double that of the start of the year and bitcoin likes to have these big corrections after making huge and rapid gains.

I'd expect it's a combination of things but still normal market movements and nothing has fundamentally changed that would prevent bitcoin becoming gold2 as it is just better than gold and as people see this it's volatility will decrease as it's market cap increases, I'd imagine.

Though I very much like both asset classes and feel much relieved to have taken so much off the table and into property, art & collectables etc.

Eoin Treacy's view

Thanks for this instructive email. The time for developers to begin to plan for a security upgrade is now. The pace of innovation in quantum computing is not something that can simply be dismissed. It is not a challenge in the short term but it is something that will become a progressively more important consideration the more successful cryptocurrencies become and not least if a true commercial use case is developed.

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