Bitcoin’s recent sell-off isn’t due to quantum computing fears, because if that were the case, Ether would be soaring, says Bitcoin developer Matt Carallo.
“I strongly disagree with the characterization that Bitcoin’s current price is materially, because of some kind of quantum risk,” Carallo told journalist Laura Shin on the Unchained podcast on Thursday.
“If that were true, then Ethereum would be up substantially on Bitcoin,” he added. Ether (ETH) is down 58% since a major crypto market crash in early October, trading at $1,957 at the time of publication.
Carallo’s comments come as several Bitcoiners have argued that fears of quantum computing affecting the blockchain are partly why Bitcoin (BTC) has dropped 46% from its October all-time high of $126,100 to now trade at $67,162, according to CoinMarketCap.
Ethereum zones in on quantum readiness
Some Bitcoin users have accused the blockchain’s developers of not moving quickly enough to make the network quantum-resistant, while the Ethereum Foundation has said it is taking measures to be ready.
In its protocol update on Wednesday, the Ethereum Foundation outlined long-term post-quantum readiness as part of its broader security initiative.
Carallo said that although quantum computing poses long-term risks to Bitcoin, market makers don’t see it as a pressing short-term threat, arguing that the Bitcoin community is just looking for a scapegoat.
“There are a lot of Bitcoiners who want to blame something, blame someone for lackluster performance.”
Carallo said that a more likely reason for Bitcoin’s price decline is that it is now “competing for capital” in a way it never has before against other technologies such as artificial intelligence.
“AI is super capital-intensive,” he said, adding that it is a “massive new investment class that is substantially competing for capital.”
“There’s a lot of interest in value accrual that will happen because of AI in traditional equities,” Carallo said.
Bitcoiners are of the opposite opinion
Not all Bitcoiners agree with Carallo. Capriole Investments founder Charles Edwards said at Cointelegraph’s LONGITUDE event on Feb. 12 that the risk should be priced into Bitcoin until it becomes quantum-resistant.
“Today, you kind of have to start to discount the value of Bitcoin based on that risk until it’s solved,” Edwards said.
Related: Bitcoin bottom signal that preceded 1,900% rally flashes again
Meanwhile, entrepreneur Kevin O’Leary told Magazine in December that using quantum computing to crack Bitcoin may not be the most efficient use of the resources, and there is more upside in using the technology for areas such as medical research.
In May, the world’s largest asset manager, BlackRock, updated the registration statement for its iShares Bitcoin ETF (IBIT) to warn investors of the potential risks to the integrity of the Bitcoin network posed by quantum computing.
Magazine: Bitcoin may take 7 years to upgrade to post-quantum: BIP-360 co-author
