The Latest Crypto Price Dip Is Fueled By Fake News Relating to Quantum Computers

[joniboini]

However there are two events that seem like are related in some way to this drop which are the launch of bakkt that was disappointment for many people as they were hoping that bakkt will push the price up upside and second one is hashrate which is still mysterious.

People are just connecting the dots, but what happened could only be answered by the one who dumped their Bitcoin.

No need to find what is the cause of this because that's technically not possible. You can debate it all day, but it won't give you valuable insights except for mere speculations.

#1 A new public key wouldn't defend against quantum brute forcing.

Then don't reuse your address. Other than that, move on to signature like Lamport signature.

Seriously, if SHA got broken then I guess banks or any mainstream public services that depend on encryption would take a bigger blow compared to Bitcoin.

[stompix]

The price dip we have experienced today is more related to the 40% drop in hash rate we have in Bitcoin mining and even that is a questionable even on why it had dropped that big too fast.

We don't know if it actually was a drop in hashrate power.
All those graphs are calculating the hash rate based on estimations between the difficulty of the first retarget and the time between blocks, so it's not really accurate at all. A chain of bad luck at finding blocks might show itself on the graph as a sudden drop but the hasing power is still there.

Overall, we had no drop, we're actually at this point more than 100 blocks ahead of time, and we might experience a difficulty increase of 6%. https://diff.cryptothis.com/
In indeed this no event was the trigger for a 10-20% drop in all cryptos, then the market is acting pretty stupid.


As for the google quantum hype, not only it was well before the dip but I doubt it would have impacted more than 0.1%. But again, it might be that the market is simply acting stupid...as always! 

[Hydrogen]

People have always tried to link news articles or other events to price drops/increases. It's something people will continue to do because they have no clue about how the charts have turned bearish af in the last couple of weeks with every touch that confirmed the bearish triangular formation. Statistically, the probability of them breaking out to the downside is 75ish%.

If you also look at the extremely low volumes, which is another solid indicator that a huge move is near, mainly because of how the range has been tightening (tigher range = less volatility = less volume), the market was due for a big move. Unfortunately for people, it went down instead of up, but it shouldn't have come as a surprise. Lower levels are due. DCA the market down is the way to go if you want to grow your stack.

Nearly every big bitcoin price move in history was fueled by a news story.

The same way many US tech corporations increased their stock price by more than 20% simply by announcing vague plans to pursue a project related to blockchains.

News events like SEC rulings on winklevoss ETF applications have always wielded by far the largest influence on BTC price movements.

Essentially you're investing and trading a commodity known as crypto currencies which rely heavily on encryption standards. You're claiming a news story about encryption standards being potentially broken via quantum computing has zero effect on the commodity you're trading.

#1 I was referring to quantum proof public keys, which are already ready today but have a few issues:

Public-key crypto that is secure against QC does exist, however. Currently, Bitcoin experts tend to favor a cryptosystem based on Lamport signatures.

#2 Again, there's a study saying that current ASICs are faster than theoretical quantum computers when it comes to mining because they're specialized:

We find that the proof-of-work used by Bitcoin is relatively resistant to substantial speedup by quantum computers in the next 10 years, mainly because specialized ASIC miners are extremely fast compared to the estimated clock speed of near-term quantum computers

So if this is accurate, Bitcoin doesn't really have to worry too much about getting 51%'d by quantum computers, or at least  not in the near future.

#3 Yeah, all I was saying is that I don't think a lot mainstream readers would be able to draw that connection, which is why I believe that it's unlikely for the price slide to be attributable to the news piece.

#1  Quantum keys merely increase the bitsize. It means you upgrade from SHA256 to SHA512 or a larger bitwise number. There's no guarantee that this would be effective against a true quantum computer, if one is ever created.

#2  Clock speed, optimization and a smaller silicon lithographic etching process in nanometers could be cited to claim protection against quantum brute forcing. But would any of those marketing claims withstand the reality of it? Its not something anyone is making an effort to place a guarantee on.

#3  There have been many many BTC price movements traders couldn't explain that were easily explainable by stories published in the news at the time.

I'll give you one example:

https://bitcointalk.org/index.php?topic=5142884.msg51040602#msg51040602

That news story could explain the recent spike in BTC price which traders also could not explain @ the time.

[Kakmakr]

Nah, I doubt if the drop in the hashing power and the drop in the price has anything to do with the fake news that are being spread about Quantum computing. People do not even know how Bitcoin works, so why would they know how quantum computing could affect Bitcoin. 

I think the real problem behind this is purely based on market manipulation and the speculative traders that are hyped over Bakkt. Time will tell if I am wrong and if there are something else, but I think the disappointment over the poor trading volumes on Bakkt is a huge contributor to this. 

[South Park]

The piece of news from google was a couple days ago, there's no connection between that and todays 'dip'. The price was going sideways for too long, expectations for Bakkt were too high, and we're seeing a large decrease in price following weeks of stability. We might go back to ~$10k but it may 'dip' again.

It's all like you say, but that wouldn't make an interesting article for an average crypto investor, people want to get one big single reason why Bitcoin dropped, and it must be something that sounds really scary. Crypto is full of retail investors without any experience in trading before they picked cryptocurrency, which is why these news sites are of so poor quality - they don't have to produce any high quality analysis and overview, a simple clickbait would do much better for them.

While the news is interesting and it could become a problem for bitcoin sooner than expected if it is true I do not believe either that the sudden crash that we saw had any relationship with it, investors have been saying that the price was bound to an even bigger correction, so it is likely that a whale or group of whales were satisfied with their profits and decided to cash out, this created panic and everyone began to sell causing the price to crash even further.

[avikz]

Lol!! Without going to the controversy whether Google has achieved quantum process of 53 Qubit power or not, I think there is no correlation at all! Quantum computer will have much larger scope for mankind, why would it be used to break the encryption of bitcoin only?? That's dumb thinking!

I would rather think, Google will use its quantum computer very cautiously without hurting anyone or anything, even after having the capability of doing so! I am sure bitcoin users have at least that much gray matter in their brain!

[kryptqnick]

The piece of news from google was a couple days ago, there's no connection between that and todays 'dip'. The price was going sideways for too long, expectations for Bakkt were too high, and we're seeing a large decrease in price following weeks of stability. We might go back to ~$10k but it may 'dip' again.

I also thought about Bakkt when I saw that the price dropped. Some people also assume that it's for technical reasons, that it was going in that direction. As an article on Cointelegraph mentions, another hypothesis is that it's because of Trump impeachment stuff related to Ukraine. Another assumption I saw was about some mining farm quitting the business (but it's clear now that it's not the case), and it's the first time I see the version about quantum computers. Even if it's not the reason for the current price, it's useful to know that some information of doubtful character about quantum computers and cryptos is going on the net. It can have an impact later.

[Hydrogen]

Lol!! Without going to the controversy whether Google has achieved quantum process of 53 Qubit power or not, I think there is no correlation at all! Quantum computer will have much larger scope for mankind, why would it be used to break the encryption of bitcoin only?? That's dumb thinking!

#1  Imagine that there is something known as a crypto currency.
#2  The term crypto is derived from the encryption technology upon which it is built on.
#3  A news story suggests quantum computer breakthroughs may soon be able to break this encryption.
#4  There is a massive 20% decline in the value of crypto currencies mere days after this news story is published.

Conclusion  People say quantum computer news relating to encryption standards potentially being vulnerable are 100% unrelated to the massive 20% price drop. Essentially you're saying that you think the encryption standards upon which bitcoin are built being potentially vulnerable would have zero effect on it?

You say quantum computers have a "larger scope for mankind" than breaking encryption. That's hilarious. What "larger scope" is that? I do not think you have an answer.

Writers of articles on blockchain and crypto websites said nothing about this quantum computer news.

Its not due to the news having zero effect on btc price. They simply didn't know about it.

[el kaka22]

I am not entirely sure about the subject in hand and I have absolutely no proof that it is not like that but I can't stop but feel that there has been literally a cry for $7.8k gap to be closed for MONTHS now and it eventually reached there so I feel like maybe there is a connection with the fake news but maybe it is just the thing we have been waiting for months to happen?

Not saying that is the reason and not saying the topic is wrong, it could be literally anything, like a huge whale maybe sold his coins, who knows but I mean we all have been expecting this for months now and suddenly we are there and we are looking for other reasons. Maybe it is because we have called for $7.8k for months and that just happened without any other drama or fake news involved?

[mazdafunsun]

I am still not sure that stable quantum computing can exist in near future.
These news did not have anything to do with bitcoin drop, the big move was predicted by simple Technical analysis.
If the news had impact worldwide and if it was true, the appropriate stocks would go down extremely fast.

[ene1980]

The piece of news from google was a couple days ago, there's no connection between that and todays 'dip'. The price was going sideways for too long, expectations for Bakkt were too high, and we're seeing a large decrease in price following weeks of stability. We might go back to ~$10k but it may 'dip' again.

This can be related and not any news about quantum computers as i still consider it as a dream to achieve those levels to have a real attack on anything.
The price was not going either way and it was stuck for one price for a long time and now we are seeing a correction and it is time for everyone to invest those who were planning to invest when there is a correction and wait for some time, we will see a rally in the next one year and these dips are common in this market  .

[royalfestus]

I dont know why the dump is attached to so much tales. The dump was predicted just that we dont always want to accept it. google, Bakkt or no bakkt the dump was expected, we are only disappointed in the influence of the bakkt launch to the price. Sadly we could see it deeper towards 6-7k in coming weeks before see any pump. As if we are not at used to it, there have been worse news than the google hack and the rest when it want to rise. When bull is pulling the price no news can stop it

[audaciousbeing]

When I read the headline of Google claiming to have gotten hold of Quantum computing, even without reading the content of the news, my mind went straight to crypto as we have read in several articles that the undoing of crypto would be the advent of quantum computers which is what is now upon us. Although, I would not wish away the fear because it has been reported that quantum computing is not even upon us in the near future and now google laying claim to it now should cause panic.

For me, this just further show the huge volatility that the market is facing because it does not even react to factual news but also fake news, it goes on to react to tweets by individuals, comments by figures among ridiculous thing any ideal market should react to and such reactions are always fatal. The market will recover, the question is when?

[Oilacris]

Lol!! Without going to the controversy whether Google has achieved quantum process of 53 Qubit power or not, I think there is no correlation at all! Quantum computer will have much larger scope for mankind, why would it be used to break the encryption of bitcoin only?? That's dumb thinking!

I would rather think, Google will use its quantum computer very cautiously without hurting anyone or anything, even after having the capability of doing so! I am sure bitcoin users have at least that much gray matter in their brain!

Its total BS to think of that this news correlates with the sudden price dip but we cant blame people not to tagged up these kind of news since they
do know the possibilities and capabilities of these quantum tech towards crypto that's why they are saying or trying to connect these scenarios.

People are way gone too far on presuming things even it do looks total non-sense to consider about.

[Duzter]

Now there needs a reason for the price drop. This has been connected to different issues, one being the Bakkt, another is the Bitmex, now it is the news about Quantum computers. Something about Quantum computers was there in the news, and by this time if the price hasn't fallen now the same should have got attributed to the news which is true. This happens until the growth gets initiated for the next level of bullish move.

[Baofeng]

The piece of news from google was a couple days ago, there's no connection between that and todays 'dip'. The price was going sideways for too long, expectations for Bakkt were too high, and we're seeing a large decrease in price following weeks of stability. We might go back to ~$10k but it may 'dip' again.

I agree, this news has been going around for days and I doubt that this is the source of all this sudden dip of the price. It is attributed to some miners suddenly pulling the plug on their mining hardware. But it really doesn't make sense, could probably some black out on some miners regions, but for sure they will be back mining again when the electricity stabilised. Those whale who sold on Bitmex just reacted on the market, and dump huge amount. We don't know if this is deliberate to cause the market to panic or just simply wanted to liquidate his/her assets.

[jseverson]

#1  Quantum keys merely increase the bitsize. It means you upgrade from SHA256 to SHA512 or a larger bitwise number. There's no guarantee that this would be effective against a true quantum computer, if one is ever created.

#2  Clock speed, optimization and a smaller silicon lithographic etching process in nanometers could be cited to claim protection against quantum brute forcing. But would any of those marketing claims withstand the reality of it? Its not something anyone is making an effort to place a guarantee on.

Our disagreement only really hinges on the fact that you believe that we have no idea what quantum computers can do because they don't exist (or practical ones at least) yet, whereas I believe that current projections of their capabilities would be close to what they can actually do. If we have to insist on guarantees against something that doesn't exist yet (and thus couldn't be tested), then there's literally nothing we can do to prepare at the moment. If that's your line of thinking, then I suppose your belief on its effect on prices is justified.

#3  There have been many many BTC price movements traders couldn't explain that were easily explainable by stories published in the news at the time.

I'll give you one example:

https://bitcointalk.org/index.php?topic=5142884.msg51040602#msg51040602

That news story could explain the recent spike in BTC price which traders also could not explain @ the time.

True, but it could also be explained by Bakkt being announced one day prior to that post.

The current drop also coincided with Bakkt starting slow, so I believe it's more likely that traders are more interested in watching Bakkt than Google's paper. I could be wrong, of course. Pointing to what caused price movements is difficult even in hindsight, but I think it's reasonable at this point to assume that the hype (and that hype being shot down) behind Bakkt can move the market.

[xvids]

The piece of news from google was a couple days ago, there's no connection between that and todays 'dip'. The price was going sideways for too long, expectations for Bakkt were too high, and we're seeing a large decrease in price following weeks of stability. We might go back to ~$10k but it may 'dip' again.

It's all like you say, but that wouldn't make an interesting article for an average crypto investor, people want to get one big single reason why Bitcoin dropped, and it must be something that sounds really scary. Crypto is full of retail investors without any experience in trading before they picked cryptocurrency, which is why these news sites are of so poor quality - they don't have to produce any high quality analysis and overview, a simple clickbait would do much better for them.

Yes a simple clickbait and fake news could affect the market since like you've said most of the new ones in cryptodoesn't have some trading back ground,
And easily get nervous on a fake news without even trying to search if the news are true or not.
This is the perfect example of buy the rumors and sell fact

[Freddy11]

This is where we have to try and keep our self updated with what’s happening in the market. A lot of problem for us is that we are not aware of what’s happening and because of that we make wrong decisions and often get fooled. So if we can cut that right and move ourself into right direction with staying upto date with all Crypto News, it will for sure be helping us get the kind of rewards we want to gain.

[davinchi]

I am not sure that this is the case that we should link it with, it could just be some coincidence. I have read in other post where people also attributed the $175b that the government of United state printed of recent also to the reason why we crashed in price, which majority of them might really not be truth. This is a market that is full of uncertainties, and many people are just looking for different answer to things that never existed.

This is not the first time that bitcoin will be having such a huge dump in value and before we know it, we will see another balance in the value again. This coin is too volatile, and I think we should always expect nothing of such from it at any time in a market where people are mainly using the coins as asset purpose and not for digital payment as it is supposed to be, so all these surprises are what we will continue to see.