Bitcoin recently saw a sharp correction, dropping from highs above $100K to around $96K. This decline was driven by factors such as profit-taking by large holders, tech market declines, and widespread Fear, Uncertainty, and Doubt (FUD) in association with Google announcing its quantum computing chip, Willow. In this blog, we’ll explore what FUD is, the potential threat posed by quantum computing to Bitcoin, and how the crypto community is preparing for this.
Bitcoin Price Drop from $100k to $96k Explained
The recent sharp correction in the crypto market resulted in a combined loss of over 8% in the last 24 hours. The drop from $100K support level to $96K can be attributed to several factors, most of which are driven by FUD(Fear, Uncertainty, Doubt)
- “Whales,” or large holders of Bitcoin, began profit-taking, selling off significant amounts of BTC. This triggered a cascading effect on market prices, leading to increased stop loss orders and further crashes.
- Additionally, a decline in the tech stock market pulled Bitcoin prices down with it, as BTC and major tech stocks often move in tandem. As the broader market went down by 8%, this forced many investors into increased sell-offs, intensifying the downward spiral.
What is FUD? What is Leading to the FUD?
Fear, Uncertainty, and Doubt (FUD) often arise when new developments in technology are introduced.
Quantum computers, with their vastly superior computational power, could potentially break the cryptographic algorithms that secure many cryptocurrencies. This can make people worried and uncertain about investing in crypto because they don’t fully understand what’s going on.
Will Quantum Computing Kill Crypto?
The short answer is that we’re not there yet. The biggest threat to cryptocurrencies like Bitcoin from quantum computing is still mostly theoretical.
Quantum computers use qubits, which can represent both 1 and 0 at the same time, giving them vastly superior computing power compared to classical computers. This means they could potentially break Bitcoin’s encryption quickly with algorithms like Shore’s. But this is unlikely because of a few reasons
- The era of deploying such a powerful quantum computer is still far off.
- Bitcoin’s protocol also needs to allow the post-quantum algorithms to be integrated to threaten the coin itself. Meaning this advancement of technology could not cause any danger for crypto, at least for now.
- Blockchain developers are aware of this and are taking steps to prepare for the future. One of the best defenses is scaling up cryptographic key sizes—similar to what we’ve seen with AES-256 encryption. This approach makes it very tough for quantum computers to break the encryption. Lattice-based cryptography also shows promise. By adding extra “noise” to the encryption, it makes the data difficult for even the most powerful quantum computers to understand.
In short quantum computing is not an immediate threat.
The Bitcoin development community remains vigilant, constantly working on new ways to protect the network against quantum challenges.
ALSO READ: A Beginner’s Guide To The Layers Of Blockchain Architecture
What Would It Take to Break Bitcoin Encryption?
Bitcoin’s encryption is designed to be extremely secure. For a quantum computer to break Bitcoin’s encryption, it would need over 1 million qubits.
Google’s new quantum chip, Willow, has achieved remarkable breakthroughs, like solving problems that would take regular supercomputers longer than the age of the universe. However, Willow has nowhere close to the 1 million qubits needed to break Bitcoin’s encryption. For now, Bitcoin remains secure, even with Willow’s advancements.
ALSO READ: What Will Happen To Bitcoin In The 10 Years?
What to do as Crypto Investors
Fear, uncertainty, and doubt, or FUD, happen when investors feel nervous and act without fully understanding the situation. In the case of Bitcoin, news about quantum computing may make some investors feel uncertain and sell their holdings. However, it’s important to take a step back and look at the facts.
Bitcoin is still secure, and Willow doesn’t pose a real threat to its encryption. Acting out of fear often leads to poor investment decisions. Instead, this can be a good time to stay calm and stick to your investment strategy.
In fact, when the price of Bitcoin drops due to panic selling, the prices of altcoins often drop, too. This can create opportunities for investors, as previously expensive altcoins may now be available at much lower prices.
ALSO READ: Best Altcoins To Buy In 2025
Many experienced investors use times like this to carefully buy altcoins that they believe will become more valuable in the future. Once the market settles, these altcoins could see significant increases in value. Instead of panicking, take this time to research altcoins you are interested in and consider whether this is a good opportunity to add them to your portfolio.
What is Quantum Computing?
Quantum Computing uses principles from quantum mechanics to perform computations. Unlike classical computers, which process information using bits that are either 0 or 1, quantum computers use qubits, which can exist in multiple states simultaneously due to superposition.
This allows them to solve complex problems much faster than traditional computers. Quantum computers also leverage entanglement, where the state of one qubit is directly linked to the state of another, regardless of distance.
Conclusion
Quantum computing maybe a future threat to Bitcoin, but developers are already working on solutions like bigger keys and stronger encryption. Stay informed, but don’t panic. Understanding the facts helps you make smart crypto decisions. This is where Mudrex can help.
At Mudrex, we understand that the crypto market can seem challenging for beginners. Mudrex offers you the easiest way to buy and invest in Bitcoin and over 600 plus altcoins. Take advantage of the price drop, download Mudrex and buy bitcoin now from Mudrex.
FAQs
1. What are the limitations of quantum computers for crypto encryption?
Currently, quantum computers lack the scale and stability to break the encryption used by most cryptocurrencies. Building and operating large-scale, fault-tolerant quantum computers is still a significant technological hurdle.
2. What steps are being taken to protect Crypto against quantum threats?
While the idea of a threat at this stage of evolution of Quantum computing is still unrealistic, researchers are actively developing quantum-resistant cryptographic algorithms. Some cryptocurrencies are already implementing these, and the Bitcoin community is exploring solutions like larger key sizes and post-quantum cryptography.
With six years of industry experience, Jithin excels as the Relationship Management Lead at Mudrex and has recently ventured into Research Analysis. He is passionate about market trends and technical analysis, continually expanding his expertise in Portfolio Management and Alternative Assets through detailed research and reading. Jithin also writes investment blogs with a focus on cryptocurrency and actively engages in trading, demonstrating his well-rounded expertise and dedication to the dynamic world of finance.
