Is quantum computing a risk for crypto?

Quantum computing has been appearing more frequently in the news. Major technology companies report progress, and the same question quickly follows: will crypto become unsafe?

It sounds logical. If computers become significantly more powerful, could they break the security that crypto relies on? To answer that question properly, it helps to understand what quantum computing is, and just as importantly, what it is not.

What is quantum computing?

Quantum computers are not faster versions of traditional computers. They operate in a fundamentally different way. While classical computers process information using zeros and ones, quantum computers use qubits that can exist in multiple states at the same time. This makes them theoretically powerful for very specific types of calculations.

However, quantum computers are not better at everything. They are only effective for a narrow range of problems. Breaking cryptography is often mentioned, but mainly as a theoretical possibility.

The role of cryptography in crypto

Crypto relies on cryptography for two core functions.

First, to record transactions in a way that cannot be altered.

Second, to prove ownership and authorize transactions.

It is this second function that is commonly linked to quantum computing. In theory, a sufficiently powerful quantum computer could derive a private key from a public key. That sounds alarming, but this is where theory and reality diverge.

Theory versus reality

The quantum computers that exist today are nowhere near capable of doing this. They are unstable, error prone and far too limited in scale. Breaking the cryptography used in crypto would require thousands, if not millions, of stable qubits. That is still far in the future.

The gap between what is theoretically possible and what is practically achievable is often underestimated in discussions about quantum computing.

Crypto is not a static system

An important point that is often overlooked is that crypto is not a static system. It is software, and software can be upgraded.

If quantum computing ever becomes a real threat, blockchains can transition to cryptographic methods that are resistant to quantum attacks. These methods already exist and are also being researched by governments and financial institutions.

Companies such as Google, IBM and Microsoft are investing not only in quantum computing itself, but also in future security standards. This highlights that quantum computing is viewed as a long term development.

What does this mean for crypto investors?

For crypto investors, quantum computing is not a reason to avoid crypto today. It is also not a reason to believe that Bitcoin or Ethereum will suddenly become insecure.

It is a topic worth monitoring, but the most relevant risks for crypto remain adoption, regulation and market dynamics.

In summary, quantum computing is an important long term topic, but it does not pose a direct risk to crypto today.