Notebookcheck

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,

Working For Notebookcheck

Are you a techie who knows how to write? Then join our Team! Especially English native speakers welcome!

Currently wanted: 
German-English-Translator - Details here

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
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)
Sam Medley
Sam Medley - Review Editor - @samuel_medley
I've been a "tech-head" 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 Systems Analyst for my local school district. I started working with Notebookcheck in October of 2016 and have enjoyed writing news articles and notebook reviews. My areas of interest include the business side of technology, retro gaming, Linux, and innovative gadgets. When I'm not hunched over an electronic device or writing code for a new database, I'm either outside with my family, playing a decade-old video game, or sitting behind a drum set.