Matt Carallo Refutes Quantum Computing Fears Behind Bitcoin Selloff

TLDR

• Bitcoin developer Matt Carallo disagrees with the theory that quantum computing fears are behind Bitcoin’s recent price drop.
• Carallo points out that if quantum risks were a major concern, Ether (ETH) would be surging, not remaining flat.
• Many Bitcoin users have speculated that quantum computing is causing the selloff, but Carallo believes it’s not an immediate threat.
• Carallo suggests that the decline in Bitcoin’s price is more likely due to increased competition from sectors like artificial intelligence.
• Ethereum is actively working on post-quantum readiness, but Bitcoin’s developers have yet to prioritize immediate action on quantum risks.

Bitcoin’s recent price drop has stirred speculation about the potential risks of quantum computing. Some in the Bitcoin community have linked the selloff to fears over quantum computing’s impact on blockchain security. However, Bitcoin developer Matt Carallo disagrees with this theory, pointing out that if quantum computing posed a real threat, Ether would be surging, not lagging.

Carallo expressed his disagreement with the notion that Bitcoin’s selloff is mainly driven by quantum risks during a recent interview on the Unchained podcast. “If that were true, then Ethereum would be up substantially on Bitcoin,” Carallo explained. His statement counters the argument that concerns about quantum computing are largely behind Bitcoin’s 46% drop from its October all-time high.

Bitcoin Selloff: Quantum Fears Not a Primary Driver

Many Bitcoin users have suggested that quantum computing is responsible for Bitcoin’s price decline. However, Carallo believes this perspective misses the mark. He stated that the market does not perceive quantum computing as an immediate threat. Instead, he argues that quantum computing remains a distant concern for Bitcoin’s future, not a pressing issue for today’s market.

According to Carallo, some Bitcoiners are simply searching for a scapegoat to explain the recent price drop. He pointed out that Bitcoin now faces competition for capital, especially from sectors like artificial intelligence (AI). As Carallo put it, “AI is super capital-intensive” and is now competing directly with Bitcoin for investment.

Ethereum’s Response to Quantum Computing

While Bitcoin may not be focused on quantum risks, the Ethereum Foundation is taking a different approach. Ethereum has acknowledged the long-term risks quantum computing poses to blockchain networks. The Ethereum Foundation included post-quantum readiness as part of its security update earlier this week.

This update demonstrates Ethereum’s proactive stance on quantum security. Despite this, the lack of a similar immediate response from Bitcoin’s developers has drawn criticism. Ethereum’s steps are seen as positioning the network to be prepared for the eventual challenges quantum computing might pose.

Opinions Diverge on Quantum Computing’s Impact

Though Carallo downplays quantum risks, other industry figures, like Capriole Investments founder Charles Edwards, believe quantum computing must be factored into Bitcoin’s valuation. Edwards suggested that investors should begin accounting for quantum risks until Bitcoin’s network becomes quantum-resistant. This ongoing debate highlights the varying perspectives within the crypto community regarding the urgency of quantum computing threats.

Entrepreneur Kevin O’Leary also weighed in, stating that quantum computing may not be the best use of resources for attacking Bitcoin. O’Leary emphasized that the technology could be better applied in fields like medical research. This suggests that the fears surrounding quantum computing’s impact on Bitcoin may be overstated, especially considering the potential applications in other sectors.

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