Unlike traditional computers, quantum computers use qubits — units of information that can exist simultaneously in states 0 and 1. This allows them to perform calculations much faster. Google, for example, claims its Willow chip processes data in parallel universes. While this technology has many useful applications, it could also have negative consequences, such as breaking encryption.
Researchers believe that it may take a decade or more before quantum devices capable of breaking Bitcoin encryption are developed. However, even after that, the crypto community will face difficulties in quickly developing and implementing necessary security measures.
In 2022, the Hudson Institute released a forecast predicting that quantum attacks on cryptocurrency encryption could cause losses of $3 trillion in cryptocurrency markets and other financial sectors. This would lead to serious economic recessions.
One potential target of future quantum attacks could be the strategic cryptocurrency reserve of the United States, which is being planned by former President Donald Trump. Malicious actors who previously would have struggled to breach such a reserve using conventional computers could gain the ability with advancements in quantum computing.
"Bitcoin will become a wild target. Banks have regulation, certain protective mechanisms, and the ability to cover their customers, whereas Bitcoin is the Wild West. Your wallet won't compensate you if your Bitcoin gets stolen," said Skip Sanzeri, co-founder of QuSecure, a startup specializing in quantum-resistant cybersecurity.
Some crypto veterans, however, believe there is enough time to implement necessary security measures and address potential vulnerabilities. Emin Gün, the founder of the cryptocurrency Avalanche, states that while a quantum apocalypse is inevitable, there is still ample time to prepare, so there's no need to panic just yet.