# Bitcoin Could Be Broken by Quantum Computers: El Salvador Warns

The world's largest cryptocurrency, bitcoin, is facing a new and potentially catastrophic threat. According to the government of El Salvador, quantum computers have the theoretical capability to break public-private key cryptography, which underpins not only bitcoin but also many daily systems like banking, email, and communications. The Central American country, which owns roughly half a billion pounds worth of bitcoin, has announced plans to split its vast holdings into multiple wallets in order to protect against potential quantum attacks.

The move is part of a strategic initiative by the government to "enhance the security and long-term custody" of its bitcoin reserve. By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized. This measure aims to mitigate the risk of a quantum machine discovering private keys and redirecting funds before a transaction confirms.

The threat posed by quantum computing has been highlighted by various experts in the field. Quantum computers have the capability to break certain types of cryptography using Shor's algorithm, which could potentially expose public keys on the blockchain. This could lead to devastating consequences for the bitcoin network and other digital assets that rely on similar cryptographic algorithms.

Quantum computing research firm Project Eleven has estimated that around 6 million bitcoin could be at risk to quantum machines in the future due to exposed public keys. The potential impact of a quantum attack on the bitcoin network is significant, and it's not just El Salvador that is taking precautions.

In May, investment giant BlackRock issued a warning about future quantum technology, claiming that it could "undermine the viability" of the cryptographic algorithms used for digital assets like bitcoin. Other experts have downplayed the threat, suggesting that a fix could be implemented to the cryptocurrency's underlying software in such an event.

Michael Saylor, whose company Strategy owns 629,000 bitcoins (worth £50 billion at today's prices), has expressed confidence in the security of the bitcoin network. He claims that it's "the hardest thing in the universe to hack" and that the technology underpinning communications and banking systems is "an order of magnitude weaker".

However, not all experts share this optimism. The threat posed by quantum computing highlights the need for continued investment in cryptography and cybersecurity measures. As the field continues to evolve, it's essential for investors and users to stay informed about potential risks and take proactive steps to protect their assets.

The future of bitcoin and other digital assets hangs in the balance. Will the cryptocurrency industry be able to adapt quickly enough to mitigate the impact of quantum computing? Only time will tell. But one thing is certain – the stakes have never been higher, and it's essential for those involved to take the necessary precautions to protect their investments.

**The Quantum Threat: A Closer Look**

* **Quantum Computers and Shor's Algorithm**: Quantum computers have the theoretical capability to break public-private key cryptography using Shor's algorithm. This could potentially expose public keys on the blockchain, leading to devastating consequences for the bitcoin network. * **Exposed Public Keys and Quantum Attacks**: When a bitcoin transaction is signed and broadcast, the public key becomes visible on the blockchain, potentially exposing the address to quantum attacks that could discover private keys and redirect funds before the transaction confirms. * **The Impact of Quantum Computing on Bitcoin**: El Salvador's move to split its holdings into multiple wallets highlights the potential risks posed by quantum computing. The country owns roughly half a billion pounds worth of bitcoin, and its plans aim to mitigate the impact of a potential quantum attack.

**What's Next?**

As the threat of quantum computing continues to grow, it's essential for investors and users to stay informed about potential risks and take proactive steps to protect their assets. The cryptocurrency industry must adapt quickly enough to mitigate the impact of quantum computing, or risk losing billions of pounds worth of investments.

But what does this mean for the future of bitcoin and other digital assets? Only time will tell. In the meantime, it's essential to stay vigilant and prepared for any potential risks that may arise.