Quantum computers may be able to crack Bitcoin's security faster than expected, and Bitcoin's Taproot technology may be partly to blame, according to Google's Quantum AI team. This finding raises fresh questions about the timeline for quantum threats and the potential impact on investors.
The team's research suggests that the computing power required to break Bitcoin's cryptography could be far lower than previously assumed, with fewer than 500,000 physical quantum bits, or qubits, needed. This is a significant reduction from the "millions" often cited in recent years, and it suggests that the gap between current technology and a viable attack may be smaller than investors think.
Google's research also outlines how a quantum attack could work in practice. A quantum computer could target transactions in real-time, revealing a public key and calculating the private key to redirect funds. This attack could be completed in about nine minutes, giving an attacker a 41% chance of beating the original transfer.
The findings also cast a new light on Taproot, Bitcoin's 2021 upgrade. While Taproot improved privacy and efficiency, it also made public keys visible on the blockchain by default, removing a layer of protection used in older address formats. This design choice could expand the number of wallets vulnerable to future quantum attacks.
Google's researchers used a technique called a zero-knowledge proof to prove their findings are accurate without exposing the method itself. This allows others to verify the results while limiting the risk the research could be misused.
The takeaway for investors is not that quantum computers are about to break crypto, but that the timeline may be shorter, and the risks broader, than previously thought. This finding highlights the importance of post-quantum migration and the need for investors to consider the potential impact of quantum threats on their holdings.
In other news, stablecoins are entering their third phase of evolution - the institutionalization era - becoming increasingly embedded into core financial infrastructure. North America is leading in regulatory frameworks and institutional distribution, with regulated issuers like USDC, RLUSD, and PYUSD gaining share. However, the broader market is experiencing losses, with Bitcoin trading near $67,500 and major altcoins down 3-8% on the week.
