With governments and central banks around the world printing trillions of dollars, many have become extremely optimistic about the BTC and cryptocurrencies as a whole – because it proves why Bitcoin scarcity is so essential.
However, a prominent analyst is now reminding investors that the flagship cryptocurrency is still facing numerous existential threats that could threaten Bitcoin’s long-term effectiveness as an investment and alternative form of money.
The four existential threats to Bitcoin
Cryptocurrency researcher Hasu, who has worked with people like Su Zhu from Three Arrows Capital and companies like Deribit, recently found that Bitcoin currently has four existential risks.
What about quantum information technology?
The analyst doesn’t mention it directly, but another often-mentioned trend branded as a potential bitcoin killer is quantum computing or the improvement of computer technology.As it looks now, it is almost impossible to hack a private crypto key because the blockchain uses powerful encryption technology.However, some say that this will change with the advent of quantum computing, since quantum technology will allow computers to do tasks that even a supercomputer would find it difficult to do.One of the tasks that can only be performed by quantum computers is likely to be the cracking of modern encryption techniques – including the SHA-256, on which Bitcoin is based.