Qrafty heard that a new quantum computer can break crypto encryption, Bitcoin is dominating while alts are blah and a locked hard drive with 7000 Bitcoin on it

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty is back with juice and news crypto jungle, so let’s dive in 📰 🌟

1. New Quantum Computer Can Break BTC Encryption

2. Bitcoin Dominating, Alts Meh

3. A HDD With $7000 Bitcoin And A Forgotten Password

Bonus: SBF Thought Was Ok To Steal Customer Funds

Bitcoin & Crypto Security Gone?

Looks like the world is very busy with wars, aliens and money printing to be aware of a critical development in the world of computing: in a significant stride for computation, Atom Computing has unveiled the world's first 1000+ qubit quantum computer. This scientific achievement carries profound implications, particularly for the world of security, which for us translated into cryptocurrency and blockchain technology.

Why is that important, Qrafty?

Cryptocurrencies such as Bitcoin and Ethereum are built on a foundation of cryptographic security. When we engage in a cryptocurrency transaction, we rely on cryptographic signatures for authentication. These signed transactions are then shared with network nodes, which validate and record them in an immutable ledger. This process ensures the security and trustworthiness of digital transactions.

The emergence of powerful quantum computers, ill-intended actors and Grover's algorithm introduces a notable challenge to this security. Quantum computers have the potential to break 256-bit encryption algorithms at an accelerated rate. This means that unauthorized individuals could potentially forge transactions, signed with someone else's cryptographic keys, without their consent. These fraudulent transactions could then be submitted and executed, leading to unauthorized transfers of digital assets.

I don’t get it, Qrafty…

Someone can just take crypto from your wallet by creating/forging transactions that will be recognized as valid on that blockchain, without you even knowing it. Not to mention allowing it because there’s not need. That transaction will be recognized as if signed by you… So you just wake up and realize that poof… it’s all gone!

How come governments don’t know about this?

Oh, they do! 🙂 It’s just that they didn’t let us, the ordinary jungle creatures, know. In recognition of the growing threat, US federal agencies have taken proactive measures to safeguard against quantum computing attacks. Since March 2023, they have recommended adopting post-quantum security measures, including moving away from the use of 256-bit encryption, which underpins the security of most cryptocurrencies.

The Need for a Quantum Computing Law

The rapid progress of quantum computing, which often outpaces Moore's Law, underscores the need for a dedicated framework to address its implications. While Moore's Law provides a reference for the exponential growth of traditional computing power, the rapid evolution of quantum computing necessitates a new, tailored approach to guide its development and regulation.

What’s next, Qrafty?

Efforts are underway to enhance the security of blockchain networks against quantum threats. The swift pace of quantum computing's development raises concerns about the effectiveness of these measures. As quantum computing continues to advance, it may render existing defenses insufficient, highlighting the need for ongoing vigilance and adaptation to address evolving threats.

In conclusion, Atom Computing's creation of a 1000+ qubit quantum computer is a notable achievement in the realm of technology. It also highlights the urgency for the cryptocurrency and blockchain communities to strengthen their defenses against the growing threat of quantum computing. Finnaly, it shows that maybe not all things should be completely digitized and that maybe we shouldn’t be too eager to dismiss cash after all.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

JPM Coin Handles 1 Billion Daily

J.P. Morgan is flexing its digital muscles, revealing that its digital token now dances to the tune of $1 billion in daily transactions. But let's put it in perspective – it's mostly in good ol' U.S. dollars, but the bigwigs at J.P. Morgan have grander plans to expand beyond the horizon.

Back in 2019, J.P. Morgan made history as the first major U.S. bank to unleash its very own digital token, JPM Coin, into the real world. It was their ticket to achieving "the instantaneous transfer of payments between institutional accounts”.

So JPM Coin is the bank's secret sauce for enabling its wholesale clients to breeze through dollar and euro payments over their exclusive blockchain network. But don't let that billion-dollar figure fool you; it's merely a small fish in J.P. Morgan's vast ocean of financial flows, with a jaw-dropping $10 trillion in U.S. dollar transactions happening daily.

But J.P. Morgan isn't stopping at just one trick. They've got a blockchain-based repo application in their arsenal and they're even pondering a digital deposit token to turbocharge those cross-border settlements.

Takis Georgakopoulos, the Global Head of Payments hinted at the future, envisioning a retail-friendly version of their sheetcoin innovation. Imagine bringing that same efficiency to everyday consumers – it's like upgrading from dial-up to fiber optic in the world of payments, innit?

On a similar but different note, JPMorgan has suggested that a rejection of spot bitcoin ETFs by the SEC might result in the bank suing the hell out of the agency. It’s pretty funny and interesting to see this public circus, considering that the agency has been representing the interests of banks and financial institutions.

The SEC has been suing crypto companies left and right, which only benefitted the banks and gave them the runway to literally copy and build their products in a very non-transparent manner while trashing the entire crypto and blockchain movement. Now, they’re coming with their own crypto enabled solutions. Cool, huh?

Bitcoin Is Dominating, Alts Meh

Bitcoin is on a tear, showing remarkable resilience with over two weeks of continuous gains. In the past week alone, it has surged by an impressive 18%. Meanwhile, altcoins, while still in the green, have been playing second fiddle to the Bitcoin bull run. Ether, for instance, posted a respectable 13% increase in the last seven days, but Bitcoin clearly stole the show.

The situation is even more apparent when you look at BNB, which has had a comparatively lackluster week with a modest 4.8% gain. It's as if the altcoins are doing their best to keep up, but Bitcoin is in a league of its own.

Bitcoin's dominance in the crypto realm is at a noteworthy 51.5%, marking the highest level in over two years. This digital giant now holds a significant 51.5% of the entire cryptocurrency market, a feat not seen since April 2021.

Ideally, Bitcoin should cool down a bit and range for a while in order to allow for the rotation of capital into Ethereum and altcoins, which should create a mini alt season. We’ll see if that happens.

A Hard Disk With 7,002 BTC

Stefan Thomas, the ex-CTO at Ripple, holds an IronKey hard drive with a staggering 7,002 BTC, but he's down to just two tries to guess the password.

Enter Unciphered, a crypto recovery firm, offering to unlock Thomas' IronKey, now holding around $244 million. Thomas, unfortunately, can't recall the access info, and the drive will wipe data after ten incorrect attempts. He's already used eight.

Unciphered, employing an innovative approach, successfully cracked a similar IronKey after a staggering "200 trillion tries," defying the ten-attempt limit, as reported by Wired. This development could hold the key to unlocking Thomas' digital fortune.

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Qrafty’s thought of the day

Other stories

Tick… Tock…

No no, not the social network. U.S. lawmakers are urging the DOJ to explore criminal charges against Binance and open a massive investigation into Tether's connection to fraudulent financial activities. This might lead to a world of trouble. If Tether crashes, there is a big chance that the whole crypto movement will be severely affected.

Sam Bankman-Fried: I thought it was ok to steal

When questioned about the mingling of FTX customer deposits and Alameda funds, Bankman-Fried asserted he believed it was legal. In the defense's opening statement, it was argued that while he made mistakes, there was no intentional fraud on his part. The defense maintains he was focused on rapidly growing the cryptocurrency exchange. So what if he stole your money to grow his business? No biggie… right? RIGHT!?

UK Bill for Seizing Illicit Crypto is dangerous

The bill grants local law enforcement broader authority to confiscate cryptocurrency associated with criminal activities, even in situations where no prior conviction has been secured. This feature, while beneficial in urgent cases, has sparked concerns among experts due to the potential for property seizure without the safeguard of a prior conviction, raising valid concerns about its implications.

Liquidations, but not the good kind

In less than 48 hours, Bitcoin traders faced liquidations exceeding $147 million as the cryptocurrency retreated from its peak above $35,000 earlier in the week. On Wednesday, Bitcoin's 30-day volatility increased by more than 2%.

Market Whispers

Bitcoin started the day with a small ~400$ price increase and from there continued pretty much the entire day in a downtrend.

Now, in the evening, it started to recover, ~$33,750 seems to be the support for the time being. In the last three days it made lower highs on daily and if more days go by the harder it will be to take the high at ~$36,000.

(Quick reminder, Qrafty uses the "more or less" sign ~ because exchanges have different highs and lows and price might slightly vary). If it continues to the downside, ~$33,000 is the next support. And closed to that, ~$32,500 is the most important. It might wick it, grab the liquidity and quickly go up. If it stays there or it goes under, we might say goodbye to this "bullrun" faster then expected.

Why? Because if we get below there, at let's say $30k, the weekly candle will look horrible (might be scary ready for Halloween 😅) and under 30k we get back into the old range, from which we tried so hard to get out of. But, taking it level by level is the best play until we have a confirmed uptrend/bull market.

Eth wanted to be the hero of the day and jumped to 1865$ without informing the boss (BTC).

Qrafty thinks that's the reason why BTC dropped today, we all know it’s emotional and doesn't like to be left behind by alts. So BTC showed once again that there's no party without it. Luckily, ETH made a retest at 1,760$ and offered a good long entry, with a target of $1,900 - $2,000 if BTC behaves and continues the uptrend. Keep your stops tight or breakeven when playing with alts, we are not in an "alt season" yet.

Qrafty ends channeling his inner trader.

Today is INTERNATIONAL PUMPKIN DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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