The recent decline in Bitcoin prices has caused different discussions among market participants. Matt Corallo, an experienced Bitcoin software developer, stated that he does not find the views that quantum computer threats lie at the root of the popular cryptocurrency’s depreciation unrealistic. Corallo, who has been involved in open source Bitcoin projects for many years, stated that it is inappropriate to attribute price movements in the market to quantum concerns.
Price Difference Between Bitcoin and Ethereum Remarkable
Following Bitcoin’s recent loss of value, similar declines occurred in Ethereum. Bitcoin, which reached its peak in October, dropped to approximately $67,000, while Ethereum experienced a 58 percent decline in the same period. Comparing the movements of these two crypto assets, Corallo emphasized that investors could be expected to shift to Ethereum if there were truly concerns about quantum computing in the market.
He drew attention to the issue by saying, “If these concerns were right, Ethereum should have shown a serious rise against Bitcoin.”
Ethereum Foundation’s Security Roadmap
The risks that quantum computers may pose in the future have become increasingly prominent in the community, especially in recent months. While some defenders of Bitcoin claim that the network did not take precautions against this threat quickly enough, the Ethereum Foundation announced in a recent update that post-quantum preparations are also included within the scope of its long-term security strategy. Corallo, on the other hand, states that professional investors do not see the quantum threat as a serious risk in the short term under current market conditions.
Areas Where Investment Capital Changes Direction
Corallo pointed out that one of the main reasons for the loss of value in Bitcoin is the increasing investments, especially in the field of artificial intelligence. The shift of investment capital towards artificial intelligence on a global scale has an impact on crypto markets as well as traditional financial assets. Corallo pointed out that artificial intelligence has recently become an area that requires huge investments, and therefore funds from assets such as Bitcoin have shifted to alternative areas.
“Artificial intelligence investments require extremely high capital,” he said.
Following recent Bitcoin price movements, investment management firm BlackRock also added a section to the updated documentation of its iShares Bitcoin Trust product highlighting potential long-term quantum risks to the integrity of the network. On the other hand, BlackRock’s spot Bitcoin ETF recorded its highest daily trading volume ever during the sharp decline in prices.
In summary, Matt Corallo and some in the industry see no immediate risk from quantum in the current price fluctuations. Developers and investors point out that crypto markets have been affected by investments in alternative sectors and macroeconomic developments in the recent period.
