so let's talk about Bitcoin and quantum computers imagine a world where diseases like Alzheimer's and cancer are curable a world we're living past 100 happens all the time a world where energy breakthroughs like fusion and problems like climate change are solved where we create materials stronger than anything we've seen that will revolutionize transportation and space exploration that is the promise of quantum computers machines that are so powerful they can simulate nature itself and solve problems that would take today's fastest supercomputers longer than the age of the universe to solve now with this promise though comes
a huge risk quantum computers are not just going to rewrite the rules of computers they're also going to rewrite all the rules of security and that raises a lot of questions about things like what does that mean for people's Investments and one of the questions that I had is what's going to happen to all the Bitcoin now that quantum computers are so much closer to reality specifically I'm talking about Google's new Quantum chip called Willow which was just announced but first let's go back to the basics what are quantum computers so the computers that we
have right now use what are called bits to represent a state of information in binary which is either a one or a zero but quantum computers use something called cubits and cubits can exist in a state of what's called super position meaning they can both be a one and a zero at the same time and this property allows quantum computers to perform a huge amount of calculations at the same time giving them exponential power for certain types of problems think of it like this a normal computer will try to solve a maze by trying One
path at a time a quantum computer will try every possible path at the exact same time to find the correct solution almost instantly and it's not just faster it's a completely different way of thinking about computation that brings me to Google's latest breakthrough the willow Quantum chip Willow is now the most advanced Quantum processor Google has ever built with major improvements over older chips like foxtail bristle cone and Sycamore now when Google announced this latest chip Willow they started off by saying Willow just did something that was almost impossible arriving before Grand Theft Auto 6
no that's not what they said they said Willow solved a problem in under 5 minutes that would take the world's fastest supercomputers 10 to the 25 years to solve that's a one with 25 zeros after it now to put that in perspective that is longer than the age of the universe so if this chip is as powerful as they say it is the question is what does that mean for the safety of our investments and what's going to happen to all the Bitcoin I want to help explain what this new Willow chip means for Quantum
Compu computers if this actually poses any real threats and then I want to show you how I'm investing given this new information so let's get into it hi my name is Andre J hope you're doing well come for the finance and stay for one of the biggest updates to computers in our lifetime Quantum technology now first I want to say that this video is going to be one of the nerdiest videos I've ever made blending economics Finance technology and physics all into one it's going to be a super technical video and it'll probably put you
to sleep I'm sorry for decades we have talked about quantum computers I remember hearing about them when I was in early grade school and they've always been 10 to 15 years away since the '90s but what I learned is that there are two major reasons why quantum computers have been held back and the first reason is something called Quantum coherence or how long cubits can hold their Quantum State before they collapse now they need to be in Quantum state just long enough to solve a problem and the longer it can be in that state the
more complex a problem it can solve now the Second Challenge is something called the critical error threshold and that means the point at which error rates are low enough for us to trust the results of a computer that means we need something called Quantum error correction because without Quantum error correction errors are created faster than they can be be fixed which makes it impossible for us to trust the results of a computation now how though does the system know that something is an error and how does it even correct itself right like how would a
computer even know that and that gets insanely complicated but it uses something called syndrome cubits to look for errors in what are called logical cubits so imagine you have three friends right I know it's a stretch and each one writes down the same secret message now if one of them makes a mistake you can tell which one made the mistake because the other two copies match but the third one doesn't so you correct the message by replacing the incorrect friend with the correct one that's a super simplified explanation of it and in Quantum Computing instead
of checking friends it's checking Quantum relationships and if something looks off it knows which Cubit to correct long story short these two problems Quantum coherence AKA how long it's in quantum State and Quantum error correction have been the two reasons why this technology hasn't progressed as fast as we liked it to until Willow Willow's made Quantum coherence longer because Willow has increased this coherence time from 20 microc to 100 microc a fivefold Improvement and this means the cubits can perform more complex calculations with less errors before they lose their Quantum State and they also introduced
a way more effective way to solve Quantum errors with new hardware features like tunable cubits which allows Engineers to fix the error in real time using AI with things like machine learning and neural networks overall Willow is just a huge step forward in quantum computers and it brings us closer to bigger scale quantum computer systems that's what Quantum Computing is that is what their problems are this is how we're fixing them but what is it actually capable of right does it have the power to break Bitcoin and cryptography Now spoiler alert Bitcoin security is a
lot stronger than most people give it credit for but there's also more than most people have heard about because Bitcoin has two separate types of encryption the first is something called ecdsa 256 and the second one is Shaw 256 now these cryptographic algorithms are designed to be almost imposs possible to break with today's technology but quantum computers operate on a completely different level so let me break it down ecdsa 256 which is short for elliptic curve digital signature algorithm is used to create your private and public Keys now the public key is what you give
out to people to receive Bitcoin it's completely sharable but if someone gets access to your private key they could steal your Bitcoin but there's also a catch with a power enough quantum computer and a public key that was exposed it would make it possible to break into your wallet because quantum computers can theoretically use something called Shore's algorithm to break the elliptic curve signature encryption by factoring large numbers meaning quantum computers that are smart enough could derive your private key from your public key but the good news is some estimates say that in order order
to do that breaking ecdsa 256 would require over 1 million cubits now Google's Willow chip as advanced as it is only has 105 cubits and remember there's also a second part to what makes Bitcoin safe which is Shaw 256 which is the backbone of bitcoin's blockchain now Shaw 256 is a cryptographic hash function that takes any input and produces a fixed size 256bit output this output is like a digital fingerprint and it's almost impossible to reverse engineer now sha 256 is also what's called Collision resistant meaning the chances of two different inputs producing the same
hash are really really low meaning the odds of you creating a wallet with the same private key as someone else is very very very low now to crack Shaw 256 a quantum computer would need to use something called Grover's algorithm which theoretically speeds up the process by reducing the number of operations required to find a hash but even with this Quantum speed up you'd still need to search through two to the 128 possible outcomes which is a number so big it's almost impossible to explain but to put that into perspective imagine that I was thinking
of a single playing card in the deck and your job was to guess what I was thinking of except instead of thinking of a playing card I would think of a grain of sand and you'd be picking a single grain of sand not just from one beach but from every grain of sand on all the beaches of the entire world what would be the odds of you picking the one that I'm thinking of technically it's possible but realistically there's not a chance it would ever happen but even that is more likely to happen than cracking
Shaw 256 that is how powerful bitcoin's encryption really is some estimates say that it would take millions of error corrected cubits to achieve this Which is far beyond what Willow or any other quantum computer is capable of doing right now so yes quantum computers are getting better but they're still nowhere near the scale that they need to be to crack bitcoin's private key encryption but there is a catch and the catch is that some people disagree on how many cubits are actually needed and this is where it gets Way Beyond my pay grade and my
brain is just not big enough to understand this but I'm going to describe the problem anyway some people say that we actually need as little as 22,000 logical cubits to break sha to 56 and it's predicted that in the next 10 to 20 years we will see more technological progress and as a result more wealth creation than we've seen in the last 100 years combined and experts say this is going to result in some incredibly transformative investing in fact you might have seen headlines about a crypto entrepreneur spending 6.2 million on art piece of a
banana J Morgan themselves are talking about how new Norms are taking hold and how alternative investments will quote play a key role in portfolio construction for both institutions and individuals in fact BFA found that over 80% of young wealthy Americans currently collect art for a slice of their portfolio or would like to and while the banana is kind of a funny example of this there are also seriously impressive ones like someone just spent $121 million on a single mcgr piece and it's not even his most famous painting whoever the buyer is they're not alone because
just in the next 2 years art and collectibles are expected to make up roughly 11% of the portfolios of ultra high net worth individuals and even in a softer cycle we've now seen multiple record-breaking art sales just since my last video talking about this in fact I also diversify a small part of my portfolio with art just like Ken Griffin Jeff Bezos and Steve Cohen who spent a billion dollars on his collection except I didn't need to spend millions of dollars see Masterworks today's sponsor is allowing everyday investors to get in on multi-million Doll Art
Investments like Banksy bosot and Picasso I've been talking about Masterworks art investment platform for a while now and I've invested alongside thousands of you Masterworks isn't an exchange it's not just an app they're actively buying and selling iconic Works around the world and like I said I personally hold a stake in shares of a bosot offering and even better Masterworks most recent sale was actually another bosot which sold for $8 million earlier this year after $1,398 days and for every $10,000 someone invested in that piece they took home over $2,600 in profit even after fees
so if you'd like to diversify you can easily sign up for Masterworks by going to the QR code or by clicking the link in the description and now let's get back to it so the rate of advancement is actually getting faster and faster thanks to these AI language learning models and quantum computers which means maybe in the next 10 years we will be able to crack all these algorithms and at that point what's going to happen and first I just want to say the obvious that when quantum computers reach a point where they can break
bitcoin's encryption Bitcoin would probably be the least of everybody's worry think about it the same quantum computers that could crack Bitcoin would also break bre the encryption that protects Banks and all those checking and savings accounts Health Care Systems stock markets military Communications and of course our personal data these systems would be way more attractive targets for attackers because they hold much more valuable information to them so if we ever do reach a level of Now You See Me to Quantum capability the entire world would be in trouble not just Bitcoin but I do think
that it's plausible to assume that Bitcoin could be the first attacked because if a company has a powerful enough quantum computer it wouldn't want to attack a bank or a country that's kind of illegal but a cryptocurrency that nobody owns just to prove a technological point it's plausible I don't think we should ignore that the potential is there and this is something that I've thought about since I got into Bitcoin because Quantum Computing is not an if problem it's a when problem it will happen and when it does Jim Kramer will be selling out for
the 10th time bitcoin's price will probably crash it'll scare most people out of it it was a scam it was a bubble all along now I don't know when this will happen and I don't know how bad it's going to get but I do know that even if it does happen in the long term Bitcoin will still be safe and the people that understand why will keep their Bitcoin unfortunately most people will probably sell because they don't watch Nerdy YouTube videos like this especially all the way to the end but Bitcoin will recover and it's
going to do that because of what I'm about to show you in this next part Bitcoin is future proofed and it was designed to be that way all the way from the beginning by Satoshi and he even predicted this way back in 2010 when he talked about moving over to a new hash and the way that Bitcoin can do that by the way is through an upgrade by what's called A Hard Fork so you can think of it like a snake that sort of sheds its skin and becomes like new Bitcoin is capable of doing
that and it has done that before in the past in fact in 2017 Bitcoin split into two different Forks Bitcoin and Bitcoin cash now that's a separate video altogether I can make that one let me know down in the comments below but it was one of if not the darkest time of bitcoin's History I was there gandal 3,000 years ago if you had your Bitcoin on the blockchain when this happened the fork produced an equal amount of both Bitcoin and Bitcoin cash so if you had 10 Bitcoin on the blockchain for example you would also
get 10 Bitcoin cash as well now I actually have proof of this because I still have 21 Bitcoin cash that I never sold I still have it on my ledger but when all this went down it was pretty crazy times but what does all this mean right it means that the developers and the researchers right now are looking at quantum computer resistant cryptography these algorithms that they're looking into are designed to protect against Quantum attacks so instead of using something like sha 256 it'll be some other cryptographic model that quantum computers can't solve right now
now it's not going to be as simple as flipping a switch and upgrading the firmware for Bitcoin it's going to take the entire community and the whole network to agree including miners developers nodes users investors businesses Hardware wallets everybody but as users and investors of Bitcoin all we have to do do is nothing just hold the coins on the blockchain and try to use a new address every time you transact without revealing your public address if you want to learn how to do that I have a course that's over 4 hours long that teaches you
step bystep for beginners you can use coupon code Andre 40 to get 40% off that teaches you how to protect your coins and so much more but the point is that Bitcoin can be future proofed and it can even be saved after a quantum computer attack hopefully though were able to do this before quantum computers get good enough because at the same time quantum computers do raise a lot of questions about everything else like privacy and security and how do we protect our data and how do we make sure it's used responsibly and does this
prove we live in a multiversal universe because some people seem to think that the math verifies that we are living in a multi-universal world it's a lot of really interesting stuff so maybe refer to this video in 10 years when it happens but let me know your comments down below do you think quantum computers will break Bitcoin or will the crypto Community stay one step ahead as always I hope you have a wonderful rest of your day smash the like button subscribe if you haven't already I'd love to see you back here next week I'll
see you soon byebye
