Google’s Quantum Computing Could Threaten Bitcoin Encryption, Warns NYDIG

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Every time quantum computing advances, one question echoes across the crypto world: Is Bitcoin still secure?

Google’s latest announcement has reignited that fear.

The tech giant revealed a major leap in quantum capabilities, slashing the number of qubits needed to break RSA encryption from 20 million to just 1 million. That’s a massive jump, and it has sparked urgent debate about the future safety of Bitcoin’s cryptographic foundation.

What’s Happening with Quantum Computing?

Quantum computing is no longer theoretical. Using principles like superposition and entanglement, these machines can process data in ways traditional computers can’t.

Today’s quantum computers can operate with over 100 qubits, and advancements in error correction are making them increasingly stable and practical. The field is accelerating, and with it comes a looming concern: Can this tech break encryption standards like RSA—and eventually Bitcoin’s?

Understanding the Threat to Bitcoin

Bitcoin doesn’t use RSA. Instead, it relies on ECDSA and increasingly, Schnorr signatures, for cryptographic security.

These offer multiple advantages:

Smaller keys with equivalent security

Faster processing

Multi-signature aggregation for enhanced privacy

But here’s the catch: According to a new report by the New York Digital Investment Group (NYDIG), these systems are not immune. As quantum computing progresses, even Bitcoin’s current cryptography may become vulnerable.

Why RSA and Bitcoin’s Encryption Could Be at Risk

RSA encryption is widely used and considered secure because it relies on the difficulty of factoring large numbers. That security was challenged in 1994 when Peter Shor introduced an algorithm capable of cracking RSA, if run on a sufficiently powerful quantum computer.

Back then, such a machine didn’t exist. Today, we’re getting closer. With Google’s quantum milestone, that theoretical threat is beginning to look like a real-world problem.

Is Bitcoin Safe Right Now?

For now, yes.
Bitcoin’s current cryptographic protections are strong enough against both classical and existing quantum computers.

But the landscape is changing:

Quantum hardware is improving rapidly

Error correction is advancing

Hybrid quantum-classical systems are being developed

The clock is ticking. Bitcoin may be safe today—but without upgrades, that may not hold true in the next decade.

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Can Post-Quantum Cryptography Save Bitcoin?

There is ongoing work in the field of Post-Quantum Cryptography (PQC)—algorithms specifically designed to resist quantum attacks.

But NYDIG’s report highlights some challenges:

Larger keys and signatures

Slower transaction speeds

Reduced performance across the Bitcoin network

This means that integrating PQC into Bitcoin is possible, but not without trade-offs in speed, efficiency, and scalability.

Conclusion: No Immediate Panic, But Urgent Preparation Needed

Bitcoin is not under threat today, but complacency is not an option. The takeaway from NYDIG and Google’s announcement is clear: the crypto industry must act now to ensure long-term security.
Whether that means adopting post-quantum cryptographic standards or developing new protocols, the future of decentralized finance may depend on it.