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The Quantum LIE About Bitcoin EXPOSED in 30 Minutes! | Simply Originals · Simply Bitcoin

0:00
Well, Google just posted a paper saying they can crack bitcoins
0:04
encryption. That's the headline.
0:06
That's what Twitter is screaming about.
0:09
That's what every crypto journalist who couldn't pass a
0:12
high school physics class is currently losing their mind
0:15
over. You know, past a certain age, a
0:18
man who has a deep understanding of the Ethereum road map can be
0:23
a bad thing. And here's what I want to do
0:25
today. I want to walk through this
0:27
story line by line, claim by claim, number by number, and
0:32
show you exactly what Google actually said, what it actually
0:36
means, and most importantly, what Bitcoin developers were
0:40
already doing about it before Google printed a single page.
0:45
Because here's the thing. This is not the first time
0:49
someone has declared Bitcoin dead.
0:52
The body count on Bitcoin obituaries is somewhere near
0:55
like 505 hundred death certificates.
0:58
All were wrong. This one's different, right?
1:02
Right. This one's Google.
1:04
Not some no name Blogger, not a central banker having a bad hair
1:08
day on CNBC. It's Google, the most powerful
1:12
technology company on earth. Google has a history of being
1:16
afraid of things that are stronger than them.
1:18
Sound familiar? So today we're doing a full
1:21
autopsy on the Quantum. But no hype, no panic, no
1:25
speculation. Cold hard thanks.
1:28
By the end of this episode, you're going to understand
1:31
exactly what quantum computing can and cannot do to Bitcoin
1:36
right now. Today you're going to understand
1:38
why the people screaming the loudest understand the
1:41
technology the least. And you're going to see with
1:44
your own eyes what the Bitcoin developer community is already
1:47
shipping right now to make this a non issue years before it even
1:52
becomes one. That's right, we are exposing
1:57
the quantum lie. Someone had to do it.
2:05
All right, let me tell you what actually happened, because the
2:07
gap between what Google published and what the Internet
2:10
heard is genuinely one of the most spectacular failures of
2:15
technical communication I have ever witnessed.
2:17
Google Quantum AI, their research division, published a
2:21
white paper, a theoretical paper.
2:24
In it, they made one specific technical claim.
2:27
They've reduced the theoretical number of logical qubits needed
2:30
to break bitcoins. Elliptic curve encryption.
2:34
Previous estimates had that number in the millions.
2:36
Google's new estimate around 1200 logical qubits.
2:40
A separate paper published the same week from researchers at
2:44
Harvard, Caltech and MIT, went further.
2:47
They claimed Shores algorithm could be executed with this few
2:50
as 10,000 reconfigurable atomic qubits using a neutral atom
2:55
architecture. To the non-technical person,
2:58
this sounds like they just solved the problem.
3:00
Like they found a shortcut. Like today's Bitcoin security
3:03
just went from Fort Knox to a cardboard box.
3:07
That's how it got reported. But here's what actually
3:10
happened. They published A0 knowledge
3:13
proof. That is a mathematical proof
3:15
that their theoretical approach could work.
3:17
They did not run the attack. They did not publish the
3:19
circuits. They did not build the machine.
3:22
They did not break anything. They did the math on paper.
3:26
Very impressive math. Still just math, but we know
3:31
math has power. And this is the part that
3:34
somehow nobody covered. Google looked at those circuits
3:37
and said, and I'm quoting directly from the paper, we
3:41
consider the underlying quantum circuits too dangerous to
3:45
publish. That is the first time in the
3:48
entire history of quantum resource estimation that a
3:51
research team withheld their circuits on national security
3:55
grounds. Google notified the US
3:57
government before publishing. They engaged with federal
4:00
agencies as part of what they called responsible disclosure.
4:03
They're treating this like a weapons manual.
4:06
Now that is worth taking seriously.
4:09
Acknowledging that a vulnerability could
4:12
theoretically be exploited and working towards responsible
4:16
disclosure closure is exactly what you want a major technology
4:20
company to do. It is different, completely
4:23
different from your Bitcoin is toast by Friday.
4:27
Here are the numbers that actually matter, the ones nobody
4:30
put in their headline. Logical qubits achieved by the
4:33
world's best quantum computers today. 96, not 1200, not 10,096.
4:41
Coherence time, meaning how long these qubits can maintain their
4:45
quantum state before the calculation collapses. 1 to 2
4:50
seconds time the actual attack requires to run days physical
4:55
qubits needed to build 1200 error corrected logical qubits
4:59
approximately 500,000 because error correction requires
5:02
hundreds of physical qubits just to maintain one stable logical
5:07
qubit. That is a 100,000 times
5:10
coherence gap. That is a fundamental unsolved
5:13
physics problem that the smartest people on earth with
5:16
essentially unlimited resources have not solved.
5:19
Here's my analogy, and I want you to hold on to it.
5:22
Imagine you need a perfectly tuned concert grand piano to
5:27
perform a Symphony at Carnegie Hall.
5:30
What quantum computers have today is a piano with most of
5:34
the keys broken, held together with electrical tape sitting in
5:39
a flooded basement. Yes, technically it has 88 keys,
5:45
but that doesn't mean you're going to be playing Carnegie
5:47
Hall anytime soon. But before I go any further,
5:50
there is a critical piece of bitcoins cryptographic
5:53
architecture that is completely missing from every single
5:57
mainstream story about this. And I want to bring in a clip
6:00
from the Block Space podcast because they explained it pretty
6:03
well. Pay close attention to this.
6:05
Let's see it. So now we finally get to how
6:08
Bitcoin uses cryptography, because that's what determines
6:12
what Bitcoin is vulnerable. When you create a wallet, you
6:15
generate a private key, a 256 bit random number.
6:20
From that private key, you derive a public key using the
6:24
elliptic curve cryptography. It's very easy, as I said, to go
6:29
from private to public, and it's theoretically impossible to go
6:33
from public to private. That is the asymmetry that
6:36
shores algorithm breaks. But here's the thing, and this
6:39
is a common misconception. Your Bitcoin address probably
6:43
isn't your public key. It's a hash of your public key.
6:48
Hashes are completely different, and Shore's algorithm can't
6:52
touch them. They can't can't reverse
6:54
engineer them. So if you've only shared your
6:56
address and never your public key, a quantum attacker can't
7:01
work backwards because they don't have your public key.
7:04
To reverse engineer your private key, they'd have to break the
7:07
hash first, which is a totally different problem.
7:11
For the majority of bitcoins history addresses have been
7:15
hashes of public keys. The public key only gets exposed
7:20
when you spend your Bitcoin, but there are exceptions, for
7:24
example the early Satoshi era coins from the 20 tens.
7:28
Also ironically, taproot addresses the newest address
7:32
format. Those are exposed when they're
7:35
in flight, when they're unconfirmed.
7:37
That right there, that is the piece they buried.
7:40
Your Bitcoin address is not your public key.
7:42
It is a cryptographic hash of your public key.
7:45
Chor's algorithm, the quantum algorithm every panicking person
7:49
is citing, cannot touch a hash. The public key only hits the
7:53
blockchain when you spend from an address.
7:56
If you've received Bitcoin to an address never sent from it, your
7:59
public key is never been exposed.
8:01
A quantum attacker has nothing to work backwards from.
8:05
It's a completely different mathematical problem.
8:07
Now there is a real vulnerability window.
8:10
Let's be precise about it. The wallet's genuinely at risk
8:14
in the future. Theoretical world where quantum
8:16
computers exist at scale are specifically Category 1.
8:21
Old pay to public key addresses P2PK format from Bitcoin's
8:26
earliest days. These include a significant
8:29
portion of what are believed to be Satoshi's coins.
8:32
In this format, the public key is permanently on chain.
8:35
Project 11A dedicated quantum security research firm used what
8:40
they call the Bitcoin Risk List to calculate that approximately
8:43
1.7 million bitcoins sits in P2PK scripts with permanently
8:49
exposed public keys. Google actually cited Project
8:52
11's research in their white paper directly.
8:56
Category 2. Any address you've already spent
8:58
from, meaning you've broadcast a signed transaction and your
9:02
public key appeared in that signature.
9:04
That is why address reuses bad hygiene.
9:08
One address 1 use. We'll come back to what you
9:11
should do about this, but Category 3 Taproot transactions
9:15
that are sitting in the men pool unconfirmed in flight where the
9:19
public keys exposed briefly. That is the basis for the quote
9:23
mempull attack narrative. In total, Project 11 estimates
9:27
approximately 6.7 million Bitcoin could be potentially
9:32
vulnerable to an at rest quantum attack, about 32% of circulating
9:37
supply. That is significant and that is
9:39
worth taking seriously and planning for.
9:43
Is every Bitcoin in the world going to evaporate next Tuesday
9:47
because Google published a paper while sitting on 96 logical
9:51
qubits? No now want to directly address
9:54
the mempool attack claim because it is the one that ended up
9:58
going the most viral and it deserves A surgical dissection.
10:02
The claim was a quantum computer could crack a private key in 9
10:07
minutes. Bitcoins block time is 10
10:10
minutes, therefore the men pull attacks are real.
10:12
Therefore you can intercept someones transaction, steal
10:15
their key and redirect their funds before the block confirms.
10:19
Now here's why this scenario is not the crisis it sounds like.
10:24
Step one requires a machine with approximately 500,000 error
10:28
corrected physical qubits, a machine that as of today does
10:32
not exist, has never existed, and represents one of the
10:36
hardest engineering challenges in human history.
10:39
Step 2 requires executing a full cryptographic attack in under 10
10:44
minutes, which is the theoretical lower bound for a
10:47
theoretical machine running theoretical circuits that Google
10:51
Google specifically said were too dangerous to publish.
10:54
Step 3, and this is the part nobody mentions, requires
10:57
getting your fraudulent replacement transaction crafted,
11:00
broadcast across the entire peer-to-peer network, and
11:03
accepted into a block by miners, all while the legitimate
11:07
original transaction is also propagating.
11:10
You're not just racing a clock, you're racing the entire Bitcoin
11:13
network simultaneously. And even if by some miracle you
11:19
pulled it off against one address, you could only attack
11:22
it once per spend event. The moment this becomes a known
11:26
demonstrated capability, the community responds immediately.
11:30
Nodes could enforce longer confirmation Windows minors
11:34
could implement policies, wallets could change their
11:37
behavior. The network adapts.
11:39
That's what decentralized open source protocols do.
11:43
Speaking of which, let me show you what is currently happening
11:46
on Twitter because I think you need to see the full information
11:50
environment that your friends and family are swimming in right
11:53
now. And I want to provide some
11:55
editorial context. Now let's get to these real
11:58
posts from Chapter 11 or whoever real takes from the people who
12:02
have Twitter accounts and feelings about quantum
12:05
computing. Let's go through it post #1 and
12:09
it got 10s of thousands of views.
12:11
TLDR existing cryptography is dead.
12:14
Mem pool attacks are real. We must migrate to post quantum
12:18
now. This is the final warning.
12:20
We will not have any additional warning signs or Canaries in the
12:24
coal mine. This is it.
12:26
This is it. The cryptography is dead, the
12:29
Canaries are dead. Everything is dead.
12:31
We are in the end times for the last part, maybe for some
12:37
debate, but Sir, are you OK? Is there someone I can call?
12:41
You're describing a scenario that requires a hardware that
12:46
doesn't exist, running circuits that haven't been built on, an
12:50
engineering foundation that has not been solved, and you're
12:53
writing it like it's some breaking news alert in a World
12:56
War 2 movie. Could it be breaking news during
12:59
World War 30? Well, I understand the impulse.
13:03
New paper drops numbers that were bigger, now smaller.
13:07
Says bad. That is, biologically speaking,
13:10
a completely normal response. That is also not how quantum
13:14
engineering works. Reducing the theoretical minimum
13:17
qubit count from millions to thousands does not mean we are
13:20
proportionally closer to having those qubits.
13:24
The math getting better does not mean the hardware got easier.
13:27
The hard part was never the math.
13:29
The hard part is error correction.
13:32
The hard part is coherence time. The hard part is building a
13:35
stable physical system that can maintain quantum states long
13:39
enough to complete a computation.
13:41
And none of that got easier because of paper got published
13:44
post #2. We thought quantum attacks could
13:47
take months. Now a quantum computer could
13:49
crack private keys in 9 minutes. Bitcoins average block time is
13:53
10 minutes. Mempool attacks are real.
13:56
We already addressed the mempool attack mechanics, but I want to
13:59
zoom out and appreciate what is happening rhetorically here.
14:02
This person is treating 2 theoretical time frames, one
14:06
that was always theoretical and one that is also theoretical, as
14:12
if they represent real present capability.
14:15
We thought it could take months on a machine that doesn't exist.
14:20
Now it could take 9 minutes on a machine that also doesn't exist.
14:25
The machine does not exist in either sentence.
14:28
The threat timeline changed in theory, and theory is important.
14:32
We should track this. The theory is not Tuesday.
14:35
You know what else could theoretically happen?
14:37
I theoretically could step outside right now and win an
14:40
Olympic gold medal in the 100 meter dash.
14:43
The theoretical time it would take me has nothing to do with
14:47
my actual physical capability, which I assure you is not
14:52
Olympic. My hamstring would do what JFK
14:54
wanted to do to the CIA. Shatter it into 1000 pieces.
14:59
Get the wheelchair ready. OK, now post #3 this one, I'll
15:03
give credit where it's due, at least correctly identifies the
15:07
source. Google has sounded the quantum
15:09
alarm. Not a startup, not a doomsayer,
15:12
not a fudster. Google Fair.
15:15
It is Google that is significant.
15:17
Credible institution. Real research, I agree, but here
15:21
is the cognitive error. Credible institution published
15:25
research does not equal it's happening right now.
15:28
NASA publishes research on asteroid trajectories all the
15:32
time. That doesn't mean you need to
15:34
build a bunker before breakfast. Googles own paper if you read
15:37
it, which apparently very few people did, explicitly describes
15:41
this as responsible awareness raising.
15:44
Their stated goal urged the industry to transition to post
15:48
quantum cryptography on a measured timeline.
15:50
They partnered with Coinbase, Stanford and the Ethereum
15:54
Foundation around the 2029 migration timeline 20293 years
15:59
from now for a transition process.
16:01
Not a crisis, a planned transition.
16:05
Interesting group of characters though, if you ask me.
16:09
And finally, my absolute favorite.
16:11
This one requires no setup. All your models are destroyed.
16:16
All your models are destroyed. What models exactly?
16:23
The Bitcoin network processed hundreds of thousands of
16:25
transactions just like yesterday.
16:27
The hash rate at another all time high blocks are arriving
16:30
every 10 minutes. The man pool is functioning
16:32
perfectly, your hardware wallet is right where you left it, Oh,
16:37
nothing has been destroyed, the bottles are fine, everything is
16:42
fine. And look, genuine empathy.
16:45
Some of these people are not grifters.
16:47
Some of them are genuinely afraid.
16:50
And fear is a completely rational response to a confusing
16:53
story told maximally poorly by people who have a financial
16:58
interest in maximizing your anxiety.
17:00
Glitz views engagement. Fear drives all three.
17:06
Now let me ask you something. Who did Google partner with to
17:08
announce this quantum alarm? Who did they choose out of every
17:12
institution on planet Earth to be responsible, sober,
17:16
trustworthy voices urging the crypto industry to act?
17:20
Coinbase and the Ethereum Foundation let that marinate the
17:25
two organizations whose entire business model depends on
17:28
Bitcoin either being compromised, complicated, or
17:31
replaced by something they control.
17:32
Those are your quantum safety partners.
17:35
That's like hiring the arsonist to run the fire safety seminar.
17:40
That's like asking the guy who's been trying to pick your lock
17:43
for four years to review your home security system.
17:46
Google didn't just publish a paper.
17:48
They assembled the board of Bitcoins most motivated critics
17:52
and handed them a megaphone and labeled it responsible
17:55
disclosure. And here's what makes it
17:57
genuinely, cosmically funny. Neither of them can help you.
18:01
Coinbase is a centralized company that holds your Bitcoin
18:04
for you. Meaning if quantum computing
18:07
ever became a real threat, they are the single point of failure,
18:11
not you. They are the one address with
18:13
the permanently exposed public key.
18:16
And the Etherium Foundation, bless their little hearts, has
18:19
been promising to fix their own cryptographic vulnerabilities
18:23
for so long that post quantum Etherium will arrive
18:27
approximately the same time as Etherium 3 point O or something.
18:32
Which is to say, after several rebrands, a lot of blog posts,
18:36
and never quite on schedule, these are the people warning you
18:40
about Bitcoin security. The irony is so thick you could
18:44
stake it or impale it, if you're into that.
18:48
But here's the thing. The single most measured, most
18:50
accurate, and most useful public response to this entire
18:53
situation came from someone who does not panic.
18:56
Someone who reads the actual papers, who runs one of the
19:00
largest corporate Bitcoin treasuries in human history in
19:04
all of history, who thinks in decades, not in panic cycles.
19:08
Michael Saylor, watch this, but first look at our likes three
19:13
more times. Maybe I pump those numbers up.
19:15
Those are rookie numbers in this racket.
19:17
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19:23
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19:59
But we have to remember two things.
20:00
One. The two words on the back of the
20:02
Hitchhiker's Guide to the Galaxy don't panic.
20:07
Most important, 2 words more important than everything and
20:10
the Encyclopedia or the Hitchhiker's Guide to the
20:13
Galaxy. The second observation, the
20:15
Hippocratic Oath, do no harm. And so whenever you're faced
20:20
with a challenge in in any system or any network, you have
20:25
to make sure you don't panic, you're not railroaded into doing
20:28
something foolish or destructive, and you also can't
20:32
do something that causes harm. You don't want an iotrogenic
20:35
intervention where the cure is worse than the disease.
20:42
So our position on quantum computing, one, we think it's
20:46
probably 10 more, 10 or more years away before there's a
20:49
threat. That is the consensus.
20:52
It's Quan. It's a promising technology, but
20:54
it's still a nation. Many industries, including
20:58
finance and defense, are dependent upon traditional
21:00
cryptography. They face the same risks.
21:04
There's a significant global investment going into building
21:07
quantum resistant protocols, not just in the Bitcoin community,
21:12
across across all communities. The Bitcoin community in
21:16
specific is engaged on research and development in these
21:19
efforts. There's good work that's taking
21:21
place. If the coin requires an upgrade,
21:25
there will be global consensus. Right now there isn't global
21:29
consensus that existing cryptographic libraries are at
21:32
risk, and to to Stampede into a hypothetical fix before there is
21:39
consensus would introduce new attack surfaces and new
21:43
complexity and new failure modes that don't currently exist.
21:47
It's, it's very similar to over vaccinating.
21:51
You know, when it's like, well, there's a, there's a point OO 1%
21:55
chance that the kid might get a disease.
21:58
So we're going to vaccinate them just in case.
22:00
But of course, 3% of the people to get the vaccine have side
22:02
effects, right? And so, so it's very important
22:05
that we don't over ensure over vaccinate, over treat, over
22:11
worry. So famous president of the
22:13
United States, he said if you see 10 problems driving down the
22:17
road, 9 of them will probably drive themselves into a ditch
22:21
before they get to you. So the one thing you can't do is
22:25
you can't buy 100 expensive insurance policies that cost
22:30
collectively 100% of all your operating income to insure
22:34
against something which is 2% likely to happen.
22:38
That's why you have to be very thoughtful about addressing
22:41
these risks, and you have to address them at the right time.
22:44
Not too soon, not too late, but because too soon you probably
22:51
don't have the right technology and you're over ensuring too
22:54
late, right? You accept the risk that you
22:56
shouldn't. That's why consensus is very
23:00
important. Letrogenic intervention.
23:02
That's the phrase. The cure being worse than the
23:05
disease. And Saylor is right.
23:07
The answer to quantum computing is not to panic fork Bitcoin
23:11
into something unrecognizable, rushed and poorly consensus
23:15
tested. The answer is exactly what the
23:18
Bitcoin developer community is already doing, methodical open
23:22
source incentive aligned engineering on Bitcoins
23:26
timeline. Let me show you specifically
23:28
what has already been built because this part somehow got
23:31
almost zero coverage in the same media cycle that ran 67
23:35
breathless articles about the Google paper Shrimps.
23:39
That is not a typo. That stands for in the Bitcoin
23:42
developer who named this clearly as a sense of humor.
23:44
Stateful hash based ring based improved multi party schemes.
23:49
This is a post quantum signature scheme developed by Nick Lerner
23:52
at block stream Research. And here's the timing I need you
23:55
to sit with for a moment. Block Stream dropped Shrimps
23:59
days before the Google announcement.
24:00
The developers were not reacting to the FUD they shipped, and
24:04
then the FUD came to them. Here's what makes Shrimps
24:07
technically significant. It produces hash based
24:09
signatures at approximately 2.5 kilobytes in size, roughly 3
24:14
times smaller than the current NIST post quantum cryptography
24:18
standards. And it supports multi device use
24:20
for the same seed, which previous quantum schemes for
24:23
Bitcoin couldn't do. Why does size matter?
24:26
Because Bitcoin has block space constraints.
24:29
Every byte cost transaction fees and occupies finite scarce block
24:33
space. The reason previous post quantum
24:36
schemes have not been implemented on Bitcoin is not
24:39
that the developers didn't care, it's that the signatures were
24:43
simply too large. They would have bloated every
24:46
transaction and degraded the network's capacity
24:49
catastrophically. Shrimp's works because it
24:51
exploits a unique behavioral property of Bitcoin keys.
24:56
Unlike a bank server key that signs millions of transactions a
24:59
day, a Bitcoin key typically signs 2-3, maybe five times in
25:03
total in its lifetime. That usage pattern makes a
25:06
stateful, compact scheme viable without the overhead that would
25:10
destroy the network. Item 2.
25:13
BIP 360 Bitcoin improvement proposal 360, a quantum
25:17
resistant output type, a new kind of Bitcoin address format
25:20
that uses post quantum cryptography instead of today's
25:24
elliptic curve cryptography. And BIP 360 is not a white
25:27
paper. It is live on test net.
25:29
BTQ Technologies is running real transactions through it on
25:33
bitcoins test network right now. Today while Twitter was losing
25:37
its mind about a paper with 96 logical cubits, Bitcoin
25:41
developers are testing post quantum transactions.
25:44
Here's how Bitcoin upgrades actually work because I think a
25:47
lot of people don't understand this and it matters.
25:50
You don't just flip a switch you propose, you build, you test on
25:54
test net. You run in parallel on mainnet.
25:56
You gather community consensus through the BIP process, and
25:59
then when the time is right and when there is efficient
26:02
consensus, when the implementation has been stress
26:05
tested, the network upgrades. No central authority, no
26:09
executive decision consensus. Could this full upgrade take
26:12
seven years from BIP 360's current test net phase to full
26:16
main net deployment? Yes.
26:18
Should it take that long? Probably, because this is the
26:22
most significant cryptographic transition in bitcoins history
26:26
and you do not rush it. Every rushed protocol upgrade in
26:30
the the history of crypto has introduced new vulnerabilities.
26:35
Bitcoin moves deliberately. That is a feature, not a bug.
26:38
The protocol will be ready before the computers are.
26:41
Now here's the context that almost nobody in the mainstream
26:44
is providing. This quantum threat, if and when
26:47
it materializes at real scale, does not just threaten Bitcoin.
26:51
It threatens everything. Your bank, SWIFT, the US
26:54
Department of Defense, every TLS certificate securing every
26:58
website you visit, every government communication system,
27:01
the entire global financial Internet runs on the same
27:04
elliptic curve cryptography that Bitcoin uses.
27:08
If a sufficiently powerful quantum computer magically
27:11
appeared somehow tomorrow, which it won't, but hypothetically,
27:15
the first targets would not be your hardware wallet.
27:18
They would be the NS as classified communications, JP
27:21
Morgan's internal keys, the Federal Reserve's
27:24
infrastructure, nuclear command and control systems.
27:27
There's always concern about Bitcoin like you mentioned the
27:30
quantum concern like what if quantum computing kills Bitcoin?
27:34
But I posted something on XA few days ago that Bitcoin is not in
27:38
danger. Bitcoin is the danger because
27:43
you shouldn't be worrying about Bitcoin and quantum computing
27:45
when there are so many other problems that will be caused
27:51
when quantum computing actually works.
27:53
But first of all, quantum computing is not a threat so far
27:56
and probably won't be for another 5-10 years.
27:59
Quantum computers can't even factor 21 right now without some
28:03
heavy customization of the algorithm.
28:06
But if we did have quantum computers, let's say tomorrow,
28:11
that would destroy the traditional financial system.
28:13
All the banking sector would be wiped out, stocks trading,
28:20
everything would be broken. All the encryption used in those
28:23
systems would be broken 1st. And it's difficult because those
28:28
are not, they don't have such a straight upgrade path like with
28:31
Bitcoin. So for Bitcoin, because it is
28:34
decentralized and it's software, we know what paths we have to
28:38
fix the quantum threat. To mitigate the quantum threat,
28:43
we just have to write the code and then every node on the
28:46
network, individuals like myself and others update our software
28:50
and Bitcoin is now quantum resistant.
28:52
The idea that some rogue nation or criminal syndicate is going
28:55
to point their theoretical 500,000 cubit machine at
28:59
yourself custody Bitcoin wallet before they aim it at the
29:02
Pentagon is, and I want to be precise here, not a serious
29:07
security analysis. And this is exactly what Sailor
29:11
said financial services defense, they all face the same risk.
29:16
This is a civilization level engineering challenge and
29:19
government standards bodies and institutions are pouring
29:23
billions into post quantum cryptography precisely because
29:28
they understand this. NIST, the National Institute of
29:31
Standards and Technology, finalized post quantum
29:34
cryptography standards in 2024. the United States government has
29:39
already started the transition. They are not waiting for Q day.
29:42
They are building now and so is Bitcoin.
29:45
One thing I've heard is that that Quantum is going to break
29:48
the blockchain. Is that true?
29:50
No, that's not true. I, I think that's a very
29:52
solvable issue. And actually Coinbase has been
29:54
very front footed on this. We put together a quantum
29:57
Advisory Council and we, we're in regular contact with the
29:59
major block chains about a path to upgrade to a post quantum
30:03
cryptography world. So we're going to stay engaged
30:05
on that and I think it's very solvable.
30:07
Michael Saylor Block Stream Research The devs, the United
30:10
States National Institute of Standards and Technology that is
30:14
your nobody is working on it list.
30:16
These are some of the sharpest minds on earth and they're
30:19
building solutions right now on bitcoins timeline, not Twitter's
30:24
timeline, not chapter elevens, not the media's panic cycle
30:28
bitcoins timeline. So what do you actually do right
30:31
now, today? Live, concrete things.
30:35
One, stop reusing Bitcoin addresses immediately.
30:38
This is free. This takes zero additional
30:40
hardware. If you have received Bitcoin to
30:43
an address, have never sent from it, your public key is not on
30:46
chain. A quantum computer cannot attack
30:49
what it can't see. One address 1.
30:52
Use every time. Make this a permanent practice
30:55
to understand what type of addresses you're using.
30:58
If you have bitcoins sitting in a very old P2PK format,
31:02
addresses from 2009 to 2011 era, mining your public key is
31:07
permanently on chain. That is the most genuinely at
31:10
risk category. In the longer term theoretical
31:13
scenario, the Bitcoin community will address what happens to
31:16
those coins through a governance process.
31:18
Watch that conversation. Participate in it. 3 Get into
31:21
self custody now. Not your keys, not your coins.
31:24
This has always been true. It's even more true as the
31:27
security landscape evolves. If your Bitcoin is on an
31:31
exchange, you have an IOU. You do not have Bitcoin.
31:34
An exchange is not going to protect your stack through a
31:37
cryptographic transition better than you can if you hold your
31:41
own keys on a hardware wallet. Learn self custody.
31:44
Do it today. Four Watch bit 360.
31:48
When this moves from test net into the broader main net
31:51
discussion, that is when the real community conversation
31:54
about implementation happens. When the upgrade comes, bitcoins
31:57
cryptographic security will be stronger than it has ever been
32:01
in its 16 year history. This is not a crisis event.
32:05
It is a planned methodical upgrade that the network is
32:08
already preparing for. Five, turn off the noise every
32:12
time a quantum paper drops, and more will drop because this is
32:18
an active research area. The fudd machine will crank back
32:20
up. Your defense is not anxiety.
32:23
Your defense is understanding. You now understand that 96
32:27
logical qubits versus 500,000 required physical qubits is not
32:32
a solved problem. You understand that your Bitcoin
32:35
address is not your public key. You understand that Bitcoin
32:39
developers are already shipping post quantum solutions and with
32:42
that you are no longer a target for the panic merchants.
32:46
And if you ever need some liquidity for whatever reason,
32:49
you don't have to sell your Bitcoin.
32:51
So why would you sell your future?
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33:11
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33:15
OK, here's the bigger picture, the one I want you to take away
33:18
from this episode. Bitcoin was built to be
33:21
upgraded. Satoshi himself flagged the
33:23
quantum threat back in 2010, before most people on Earth had
33:27
heard the word cubit. The protocol was designed with
33:30
this horizon in mind. The developer community has been
33:33
thinking about this for 16 years.
33:36
We live in a world where the legacy financial system, Fiat
33:39
currency, central bank money printing, compounding sovereign
33:43
debt systems built on fractional reserve promises.
33:46
It's built on foundations that cannot be upgraded.
33:49
You cannot submit a Bitcoin improvement proposal to the Fed.
33:53
You can't soft fork the IMF. You can't run a test net for the
33:57
US dollar. When those systems hit their
33:59
mathematical limits, and they will, Weimar beckons.
34:04
There is no open source community of brilliant, globally
34:06
distributed, incentivized developers ready to ship the
34:09
fix. Bitcoin has that.
34:11
Bitcoin has always had that. The fact that Bitcoin developers
34:14
were already building shrimps and bit 360 before Google
34:18
published their alarm is not an afterthought.
34:21
It is the defining proof of this protocol's resilience.
34:24
The threat got faster. The builders were already ahead
34:27
of it. The yield on Bitcoin is freedom
34:30
and freedom doesn't go down because Google list of paper
34:34
today. If you're serious about Bitcoin
34:36
mining, you need to be in Miami July 21st through the 23rd for
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34:47
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Use code simply Bitcoin for 20% off your ticket link is in the
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Get your tickets today. What do you guys make of all
35:00
this? Let us know in the comments
35:01
below. Don't forget to like subscribe
35:03
and give us a pan and don't forget to set those
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daily. Hey love you guys.
35:11
Catch you next time if you prefer to go down.
35:14
With the ship.