The world’s largest asset manager has admitted that Bitcoin (BTC), in future, could face a serious threat.
BlackRock’s updated prospectus of its iShares bitcoin Trust ETF IBIT mentions quantum computer under the “risk factors”.
Many people consider quantum computers to be a possible threat to Bitcoin because they have the theoretical capability to override cryptographic schemes in the future that protect blockchains.
BlackRock claims that while quantum computers are not capable of threatening Bitcoin in any way, they, as well as other technological advancements, may render it “flawed” and “ineffective.”
“…In previous years, vulnerabilities in source code of digital assets were exposed and exploited. These flaws have resulted either in the loss of functionality, the exposure or personal data, and/or the theft digital assets.
Cryptography could be ineffective or flawed, due to developments in math and/or technologies, such as advances in digital computing and algebraic geometry, and quantum computing. A malicious actor could compromise the Bitcoin security or steal the Trust’s Bitcoin in any of these scenarios, affecting the share value. The functionality of the Bitcoin Network may also be adversely affected, making it less attractive for users and reducing demand.
If bitcoin or another digital asset were to be affected in a similar way, any decrease in trust in source code and cryptography that underlies digital assets could have a negative impact on the demand for these assets. This would also negatively impact the share value.
“Moreover, since digital assets such as bitcoin have only been around for a relatively short time, and continue to evolve, it is impossible to know what additional risks may arise in the future.”
BlacRock’s IBIT, which is regarded as the most successful ETF in history has currently $70.1 billion of Bitcoin to back it.
BTC currently trades at $109,483 as of the time this article was written.
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The post BlackRock Issues Bitcoin Warn, Says BTC source code could be rendered ‘flawed’ or ‘ineffective’ by Quantum Computing will change as new information becomes available.
