The Daily: Satoshi's thoughts on quantum computing, Trump would 'love' bitcoin to hit $150,000 and more

theblock.co 10/12/2024 - 18:28 PM

Happy Tuesday!

In today’s newsletter, we explore key developments in the cryptocurrency space, including Satoshi Nakamoto’s guidance on quantum computing, significant altcoin liquidations, and more.

What Satoshi Said About Quantum Computing

With concerns rekindled about the impact of quantum computing on Bitcoin after Google’s release of the Willow chip, the community revisits Satoshi’s advice for potential scenarios where Bitcoin’s encryption could be compromised.
– While Willow offers advancements, it has insufficient qubits to threaten Bitcoin’s encryption (ECDSA and SHA-256).
– ECDSA secures transactions; SHA-256 maintains data integrity. Ben Sigman notes ECDSA would require several million qubits to break, and SHA-256 would need hundreds of millions.
– A BitcoinTalk post from Satoshi in 2010 suggests consensus on a new hash function if SHA-256 fails: “If SHA-256 became completely broken… we could transition to a new hash in an orderly way.”
– Bernstein analysts indicated practical threats to Bitcoin remain decades away, advising clients to view current dip as a buying opportunity.
– Quantum computing’s threat extends to all cryptographic systems: cryptocurrencies, bank accounts, secure storage.

Largest Altcoin Liquidations Since 2021

The cryptocurrency market has experienced a significant deleveraging event, with $1.6 billion in liquidations predominantly in altcoins like ETH, SOL, and ADA, which saw drops of 5%, 6%, and 11%.
– Analysts from K33 reported this as the largest daily long liquidation event since May 2021.
– Funding rates hit multi-week lows due to substantial leverage removal, indicating potential healthier price action ahead.
– Bitfinex analysts noted that declining funding rates could signal the unwinding of excessive long leverage and lead to a more balanced market.

Researcher Swaps Ethereum for Solana

Max Resnick, a former Ethereum researcher, has transitioned from MetaMask developer Consensys to join Solana-focused firm Anza.
– Resnick had criticized Ethereum’s technical trajectory and aims to prioritize impactful protocol developments in his new role at Solana.

Bitcoin App Relai Raises $12 Million

Bitcoin self-custodial investment platform Relai has raised $12 million in a Series A funding round, increasing its valuation to $72 million.
– Relai has facilitated $650 million in Bitcoin investments since its 2020 launch, with aspirations to reach $1 billion by 2025.
– The startup plans to double its workforce next year.

Magic Eden Airdrops ME Token

The multi-chain NFT marketplace Magic Eden has launched its ecosystem token, ME, for users on Bitcoin, Ethereum, Solana, and Polygon.
– Users must claim their ME tokens by February 1, after which unclaimed tokens will be redistributed.
– Tiff Huang emphasized that on-chain applications will prevail over the long term.

In the Next 24 Hours

  • The latest U.S. CPI inflation data is scheduled for release at 8:30 a.m. ET on Wednesday.
  • Taipei Blockchain Week continues in Taiwan.

Never miss a beat with The Block’s daily digest of the most significant events in the digital asset ecosystem.




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