Bitcoin feel as geopolitical tensions rose, casting doubt on its reputation as “digital gold” safe-have status. This time, though, there may be something else driving the losses: quantum vulnerability. The digital currency was last trading at $90,280, down 7.5% over the past five days. By comparison, safe haven assets like gold was up more than 3%. “There is a new phrase that has been hounding Bitcoin investors and has been a topic within the Bitcoin community,” Pave Finance co-founder Peter Corey said in a recent note to clients. Quantum vulnerability refers to the risk that high-powered computers could soon be used to steal passwords, or private keys, to digital wallets holding investors’ bitcoins. BTC.CB= @GC.1,@SI.1 5D mountain Bitcoin vs gold and silver 5-day chart It’s an idea that has gained steam, particularly as researchers make strides in quantum computing. Earlier this month, Jefferies strategist Christopher Wood eliminated the 10% allocation to bitcoin in his Fear & Greed portfolio and rotated into gold and gold-mining equities, citing the risk of quantum vulnerabilities. His change comes after the development late last year of a room-temperature quantum communication device at Stanford – a major innovation in the field. Amid those types of advancements, experts say quantum computers could be just a few years away, Corey said. That technology could put roughly 430 million bitcoins at risk, he added, citing a Bitcoin research firm Chaincode Labs’ data. “This type of news can terrify investors, and it probably has scared people away,” Corey said. “However, there are glimmers of hope in this bad news: When public information hits the masses, it can often mark the low.”
