Researchers Warn Quantum Computing Attacks on Cryptocurrencies Could Lead to Trillions in Losses

Forex - Bitcoin's rise is facing a risk that many cryptocurrency investors may not have on their radar: quantum computing.

This new technology has garnered attention following claims this month that Google (NASDAQ:GOOGL) has made a breakthrough with its new Willow quantum computing chip, which could one day enable hackers to break the encryption that keeps bitcoin secure. Such an attack could allow thieves to steal coins from supposedly secure digital wallets, undermining the price of bitcoin.

Researchers state that a quantum device powerful enough to crack bitcoin is likely a decade or more away. However, unless bitcoin's fragmented development community strengthens its technology with timely upgrades, advancements in this field pose a long-term risk.

Analysts warn that a quantum-enabled attack on bitcoin could have detrimental spillover effects on traditional financial markets.

Arthur Herman, a senior researcher at the Hudson Institute, a think tank based in Washington, D.C., stated, "There’s a ticking time bomb here; if someone develops the ability for quantum hacking and decides to target cryptocurrencies, it could be catastrophic."