Michael Saylor Downplays Quantum Computing Threat to Bitcoin
Market Highlights
BlackRock identifies quantum computing as a potential threat to cryptocurrencies, particularly Bitcoin. The firm suggests that advancements could undermine traditional encryption. However, Michael Saylor from Strategy downplayed this risk, stating that the Bitcoin protocol can adapt through software upgrades.
- Saylor argues that concerns over quantum threats are largely marketing tactics.
- Proposals for quantum-proof solutions include a draft Bitcoin Improvement Protocol to transition wallets to secure addresses.
- A report from Presto Research claims the crypto industry is unprepared for quantum risks.
Circle's IPO and Stablecoin Usage Insights
Circle's initial public offering (IPO) has seen its shares rise from $69 to over $107. The total market cap of stablecoins stands at $254 billion, but measuring their payment volume is complex.
- Estimates suggest stablecoin transaction volumes could reach $9 trillion annually, covering trading and DeFi activities.
- A study by Fireblocks reports verified stablecoin payments at around $232 billion, indicating only about 10% of activity is from genuine payments.
- Another analysis estimates annualized payments at approximately $72.3 billion, suggesting significant uncertainty in usage metrics.
Legal and Regulatory Developments
- BiT Global and Coinbase settled a lawsuit regarding the delisting of wrapped Bitcoin (wBTC), with each side covering its own legal fees.
- Gemini, founded by the Winklevoss twins, has confidentially filed for an IPO with the SEC, following Circle's successful market entry.
Market Movements
- BTC: Trading flat at $105,600.30 after recovering from a dip, with miners' exchange transfers indicating potential volatility.
- ETH: Holding above critical support at $2,500, closing near $2,534 amid institutional inflows.
- Gold: Slightly lower at $3,314.92, yet on track for weekly gains due to weak U.S. jobs data.
- Nikkei 225: Japan's index opens higher at 37,741.61 (+0.50%), extending recent gains.