Notebookcheck Logo
, , , , , ,
search relation.
, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Bitcoin plummets after quantum supremacy, rallies to end month higher

BTC prices as of 10/27 10:20 PM CST
BTC prices as of 10/27 10:20 PM CST
Bitcoin had a wild ride this week. After dipping over 6% on Wednesday, the cryptocurrency rallied about 30% to finish the week 18% higher. Bitcoin is up over 50% since last October. The most likely causes of the swings this week involved Google's quantum computing success and Facebook's failures with Libra.
Sam Medley,

It’s been a wild week for Bitcoin investors. Strike that; it’s been a wild month. Actually, it’s been a wild year. The cryptocurrency plummeted halfway through this week, only to rally on Friday to end the week up 18%. Currently, Bitcoin is up 51.58% for the year.

The world’s most popular cryptocurrency fell about 6.25% on October 23rd to about US $7400, the same day that Google announced it had achieved quantum supremacy. Multiple Bitcoin investors expressed concern for crypto in a future powered by quantum computers. One of the main applications for quantum computing is cryptography, and the main draw of cryptocurrencies like Bitcoin is their difficult-to-solve underlying computations. The value of a cryptocurrency lies in the perceived difficulty of generating a new unit, or “coin.” If quantum computers have already started to solve in minutes problems that would take classical computers millennia, that would commoditize cryptocurrency as the underlying algorithms would become trivial to compute.

However, these concerns are nothing more than speculation, at least for the foreseeable future. As it stands, Google’s quantum computer still has a long way to go before it could be used to solve complex cryptographic problems. As it stands, quantum computing is still a proof-of-concept rather than a genuinely useful tool.

This reminder is a likely root of the massive rally Bitcoin enjoyed on Friday; the cryptocurrency shot up over 30% to eclipse $10000 before settling back down to about $9000. At the time of publications, Bitcoin is just over $9700, marking a total year-over-year gain of almost 52%.

There is another factor in this weekend’s crypto dip and subsequent rally. Facebook’s homegrown cryptocurrency, Libra, has run into a mass of problems: key partners in the project have abandoned ship, government regulators have expressed concerns that have stalled its development, and more. While Libra’s troubles this week may have caused a dip in the crypto market, it also appears that investors poured back into competing cryptos in response to LIbra’s stumbles.

static version load dynamic
Loading Comments
Comment on this article
Sam Medley
Sam Medley - Senior Tech Writer - 1171 articles published on Notebookcheck since 2016
I've been a computer geek my entire life. After graduating college with a degree in Mathematics, I worked in finance and banking a few years before taking a job as a database administrator. I started working with Notebookcheck in October of 2016 and have enjoyed writing news and reviews. I've also written for other outlets including UltrabookReview and GeeksWorldWide, focusing on consumer guidance and video gaming. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not writing on electronics or tinkering with a device, I'm either outside with my family, enjoying a decade-old video game, or playing drums or piano.
Please share our article, every link counts!
> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2019 10 > Bitcoin plummets after quantum supremacy, rallies to end month higher
Sam Medley, 2019-10-28 (Update: 2019-10-28)