Topic: Are Quantum Computing Initiatives Behind Bitcoin's Latest Downtrend? (Read 141 times)

People always go on the hunt for extravagant ideas in search of answers when bitcoin jumps around. However the solution is usually much more simple - that bitcoin, maybe even crypto in general, is more closely tied to general economic trends than people would like. The stock markets have been trending down in the last week and there is continuing pressure since inflation is so high, that is a much more likely correlation as it's shown similar action before.

I agree about the first part, this has nothing to do with quantum computers.

But I don't think the downtrend has anything to do with UST. It is more about FED raising interest rates.

When the FED increase interest rates, we can expect money flows from everywhere else to US treasure bonds. US treasure bonds are considered the most conservative and safe investment in the world, and now it is paying much more than before.

People always go on the hunt for extravagant ideas in search of answers when bitcoin jumps around. However the solution is usually much more simple - that bitcoin, maybe even crypto in general, is more closely tied to general economic trends than people would like. The stock markets have been trending down in the last week and there is continuing pressure since inflation is so high, that is a much more likely correlation as it's shown similar action before.

Our recent downtrend began around may 4th, 2022.

Was there anything significant in the news for crypto in that timeframe?

There is a past precedent for correlation between quantum computing headlines and declines in bitcoin price. There was a BTC downtrend when google claimed to achieve quantum supremacy. Other news relating to quantum computers are correlated with BTC price declines.

Is anyone enthusiastic about this proposal to create and deploy new cryptographic standards announced by the US government. I would be interested to know where public opinion stands on this issue.

This is one of the biggest scares I have about crypto, if quantum computing starts the way scientists claim that it would, then we are going to end up with a technology that could break crypto and would be able to "hack" into anything they want.

However, this is also a big scare for all the tech as well, if you have that much power you could literally destroy a whole nations tech grid in matter of a few minutes and there is nothing they could do to stop you. This power is a very scary one that could change the way people think, and unless everyone has it, just like nukes, then people in different nations will be in big danger against the nation who figures it out.

But I don't think the downtrend has anything to do with UST. It is more about FED raising interest rates.
When the FED increase interest rates, we can expect money flows from everywhere else to US treasure bonds. US treasure bonds are considered the most conservative and safe investment in the world, and now it is paying much more than before.

Is anyone enthusiastic about this proposal to create and deploy new cryptographic standards announced by the US government. I would be interested to know where public opinion stands on this issue.

No this is not the reason for the sell off.

And this was discussed for years. When quantum computers come out then Bitcoin will most likely upgrade its code to be more secure. And so will banks and most companies to secure their systems.

This is years and years away however. Today’s sell off was due to the UST unpegged from 1:1 causing panic.

White House wants nation to prepare for cryptography-breaking quantum computers

May 4, 2022

A memorandum issued Wednesday by President Joe Biden orders federal agencies to ramp up preparations for a day when quantum computers are capable of breaking the public-key cryptography currently used to secure digital systems around the world.

The document, National Security Memorandum 10 (NSM-10), calls for “a whole-of-government and whole‑of‑society strategy” for quantum information science (QIS), including “the security enhancements provided by quantum-resistant cryptography.”

The chief concern is the expected creation of a cryptanalytically relevant quantum computer (CRQC) — the presumed goal of some QIS research by the U.S. as well as adversaries such as China.

“Current research shows that at some point in the not-too-distant future, when quantum information science matures and quantum computers are able reach a sufficient size and level of sophistication, they will be capable of breaking much of the cryptography that currently secures our digital communications,” a senior Biden administration official told reporters Tuesday in advance of the memorandum’s release. That cryptography, in many cases, dates to work published in the late 1970s and updated in the decades since.

“The good news is that this is not an insurmountable problem,” the official said. “The National Institute of Standards and Technology — NIST — will soon be publishing new cryptographic standards that can protect against these future attacks.”

Biden’s memorandum mentions quantum-resistant cryptography more than 20 times as it lays out tasks for agencies such as the Cybersecurity and Infrastructure Security Agency (CISA), the National Security Agency and NIST, which has an authoritative role in setting cybersecurity standards.

Those agencies will have about six months to “establish requirements for inventorying all currently deployed cryptographic systems, excluding National Security Systems (NSS).”

NIST and CISA also would be required to set up outreach with the private sector, including critical infrastructure operators, on transitioning important systems to quantum-resistant cryptography.

Biden also issued an executive order Wednesday that would create a National Quantum Initiative Advisory Committee including White House officials and up to 26 experts from industry, academia and U.S. national laboratories.

https://therecord.media/biden-quantum-computing-national-security-memorandu/