BlackRock, a financial asset manager, said that emerging technologies such as quantum computing could render ineffective the cryptography used to secure Bitcoin and blockchain networks.
BlackRock’s iShares Bitcoin (IBIT), which is a Bitcoin exchange-traded fund, updated its registration on May 9th. In the revised version, BlackRock addressed the potential risk to Bitcoin’s integrity posed by the quantum computer. shows.
“[I]f quantum computing technology is able to advance […] it could potentially undermine the viability of many of the cryptographic algorithms used across the world’s information technology infrastructure, including the cryptographic algorithms used for digital assets like bitcoin,” BlackRock said.
The asset manager is the only one to have explicitly highlighted this risk within its IBIT disclosures. IBIT ETF represents the largest Bitcoin spot (BTCThe website of the ETF states that its net assets are approximately $64 billion.
Quantum Computing is a new field which aims to improve computers processing abilities by using the principles of quantum mechanics.
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Records-breaking Inflows
James Seyffart is an analyst at Bloomberg Intelligence. He warns that IBITs and other risk disclosures must include all possible risks to an asset – even the ones that are highly unlikely.
“They are going to highlight any potential thing that can go wrong with any product they list or underlying asset that’s being invested in,” Seyffart stated in an X-post on May 9. “It’s completely standard. And honestly [it] makes complete sense.”
Bitcoin ETFs collectively have received more than $40 billion in net investments since their launch in January. according Farside Investors data.
Bloomberg Intelligence reports that Bitcoin ETFs net inflows have reached a record high of approximately $40 billion on May 8.
“Lifetime net flows is #1 most imp metric to watch IMO, very hard to grow, pure truth, no bs,” Eric Balchunas is a Bloomberg Intelligence analyst said In a post on May 9, X. “Impressive, they were able to make it to a new high water mark so soon after the world was supposed to end.”
Tether’s CEO Paolo Ardoino made a prediction in February that quantum computing will eventually become a reality. enable hackers to break into inactive Bitcoin wallets Recover the coins that have become dormant.
“Any Bitcoin in lost wallets, including Satoshi (if not alive), will be hacked and put back in circulation,” Ardoino said Post 8 Feb.
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Source: cointelegraph.com
