According to data source Investing.com, the price of IBIT on Nasdaq fell 5.3% to $54.73 on Tuesday. This is the biggest single-day drop since early August. In addition, the bitcoin price fell over 4% to $94,300, which resulted in ampler losses in the market.
BlackRock’s spot bitcoin (BTC) exchange-traded fund (ETF) dropped on Tuesday due to the recent Google announcement of a quantum computing chip. It might be considered Bitcoin security is compromised by quantum sensation across social media.
However, such ups and downs usually happen in bull markets. Some users on X, posted about the security concern that Willow, a quantum chip, can easily crack the Bitcoin complex math SHA-256. Google claims through a blog post that Willow can solve a typical problem in just 5 minutes that the world’s fastest supercomputers would process in 10 septillion years.
Despite this, a quantum computing chip is integrated with 105 qubits which reduces error rates. A qubit is both 0 and 1 and acts like a switch that can be off and on until it’s commanded. The quantum computing process continues at faster scales than normal computers.
“Willow has 105 qubits, which is great for quantum experiments but far from what’s needed to break Bitcoin’s encryption,” pseudonymous analyst and tech expert Cinemad Producer said on X. “Experts estimate you’d need about 1 million high-quality qubits to make a dent in Bitcoin’s security.”
Some scientists from the University of Sussex in the UK observed that a quantum computer with a capacity of 1.9 billion qubits would be necessary to break Bitcoin’s encryption. So, “Willow is still not powerful enough to pose a risk.”
In conclusion, Monday’s report suggests the major downfall of Bitcoin. It is signaling deeper losses in the broader market.
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