Recently, financial firm Noah’s Arc Capital Management changed its recommendation for Bitcoin ETFs from 'hold' to 'sell', citing risks associated with quantum computing.
Noah’s Arc Updates Bitcoin ETF Forecast
Noah’s Arc Capital Management has revised its recommendation for Bitcoin ETFs from 'hold' to 'sell' due to underestimated risks related to quantum computing. Analysts believe that Bitcoin's cryptography could become vulnerable within 5-7 years, but markets currently overlook this risk in Bitcoin pricing.
Quantum Computing: A Threat to Bitcoin Cryptography
Recently, Google unveiled its 105-qubit Willow quantum chip, capable of solving problems 10 septillion times faster than supercomputers. This advancement brings 'Q-Day' — the day quantum computers can break existing cryptography — closer to a timeframe of 5-10 years instead of 2040. Over 60% of Bitcoin's supply, including Satoshi’s coins, resides in quantum-vulnerable addresses.
State of Bitcoin and Industry Updates
Currently, assets under Bitcoin ETF management have reached $220 billion, with an inflow of $4.39 billion over the last week, marking the largest weekly inflow since 2014. The industry also sees a rise in activity: more than 32% of recent transactions are linked to Taproot and Ordinals, indicating increasing market activity.
Analysts caution about the potential dangers posed by quantum computing for Bitcoin. This issue requires attention from both investors and developers to find solutions and protect crypto assets.
