The liquidity of up to $1.7 is likely to get the investors a little unsure of investing after the latest changes during last 24 hours with assets in Bitcoin and cryptocurrencies taking a huge blow. This change has the potential to question the progression of the cryptographic security with the impact of new technology including quantum computers.
Bulldozing $1.7 Demolishing of Leverage Positions Forces The Cryptocurrency Market Into A Tailspin
In a combative change, the global crypto cap found itself being reduced by 7.5% alongside $1.7 being liquidated, in a remarkable change. Long positions alongside $1.5 billion in liquidation bore the brunt while the short positions suffered loss of $168 million. The figures of Coinglass indicate how quickly values fell as in no time Bitcoin was over $100,000 but quickly fell to $94,100 accompanied with Ethereum sub to $3,800 Mark.
The drop in bitcoin from the usual $97,800 which many have been used to is currently being listed at 2% in losses during the past 24 hours however, the dip during the preset past nearly day controversially alongside the fall in value of many altcoins such as ripple (xrp) which was down by 11% Other markets however saw coins such as Cardano(ada) and dogecoin (doge) dropping by 10% and 13% respectively.
What Triggered the Crypto Market Plunge?
Although several factors have been taken into account, there is not a single decisive event that stands out:
Google’s Quantum Computing Breakthrough
There are worries that Google’s Willow quantum chip does have the ability to break existing cryptographic protocols.
Bhutan Government’s Bitcoin Transfers
The Royal Government of Bhutan was reported to transfer 406 Bitcoin to QCP Capital, and requested to move an additional $19 million worth Bitcoin to an unknown address. These transfers, as well as selling 367 bitcoin, raised questions about impact such transactions have on people’s sentiment towards selling their bitcoin in the future.
Bhutan’s Role in the Crypto Market Volatility
With bitcoin reserves worth $1.1 billion, Bhutan is among the top five donator governments on crypto market which makes it in top five strongest holder of Bitcoin with over 11688 BTC. The country differentiates itself from all other nations by mining for bitcoin using hydroelectric energy instead of buying bitcoin seized from other people.
As a result of Bhutan debating on selling more of their bitcoin to move to coinbase, along with other factors, the market has become very uncertain. Along with these factors marketing moving buying and selling of 367 bitcoin on binance for 33.5 million has paid a part in this. The cryptocurrency dropped below 90,000 which added completely new questions towards the said country and its future plans for the market.
Quantum computing and its effect on cryptography
Willow, Google’s quantum chip is said to possess 10 septillion years of computing prowess and can outperform supercomputers in almost all tasks. This achievement however does resound alarms within the crypto community for its scalability of quantum computing potential which raises concerns with regard to the security of blockchain encryption.
The question lingers, will quantum computing successfully hack Bitcoin
It is pertinent to question as to whether Bitcoin’s encryption algorithm of ecdsa 256 alongside sha 256 can be cracked by the quantum supercomputers. In any event, the experts do remain cautious and project some level of optimism.
Present Status Report of Quantum Chips
According to estimates Bitcoin would require approximately 13 million qubits to crack within a span of 24 hours while Google’s Willow quantum chip is confirmed to have 105 qubits.
Viewpoints of the Experts
Kevin Rose from True Ventures did highlight how the quantum threat is still rather distant and not along term cause for concern. On similar terms Bitcoin supporter Ben Sigman did mention that some algorithms make use of quantum chips requiring millions of physical bits but its ability to do so is still a distant achievemnt.
Future of the Blockchain during the Age of Quantum and Crypto Security
It is to be noted that the technological achievements of the crypto market are still rather nascent and are still in the developmental stage where quantum resistant algorithms are being explored ensuring security for blockchain technology.
Mitigating the Impact of Market Volatility The complexities involved in investing mean that some global dynamics are out of every investor’s control. With this information in mind investors ought to:
Diversifying Portfolios By spreading out the parts of their portfolio to rather maintain multiple pockets of asset types they would mitigate the risk.
Gaining Knowledge The purpose of this seemingly never ending advancement of technologies such as quantum computing cannot be brushed aside.
Implementing Security Measures Enabling emulti-signature transactions and updating their wallet software regularly has enhanced security without much extra work.
Conclusion
The significance of staying alert in the crypto market is further put into perspective by the $1.7 billion USD liquidation event. All things considered, one must note the detrimental potential of Google’s advancement of the Willow chip. Experts agree that the existing modes of encryption offer sufficient protection. During these dynamic times investors ought to remain focused on the long term strategies and trends that define the world of v currencies.
If you are unsure of how to invest in this market, how to make gains from the crypto market or how to stay updated with the latest news I suggest that you remain calm as our rachings will greatly help you. Now you can subscribe for expert Take Action analysis, and advice.
