Key Points
- Utah’s Bitcoin reserve bill has advanced to the second Senate reading.
- Microsoft’s quantum chip could potentially threaten Bitcoin sooner than anticipated.
Utah is leading the way in the U.S. with its plan for a Bitcoin reserve, as the bill moves onto its second Senate reading.
The bill, if passed through all stages and signed into law by the governor, will allow the state to diversify its reserve assets with Bitcoin.
Other States Following Suit
Arizona, Montana, and Oklahoma are other states that are making progress on their respective Bitcoin reserve bills.
A report from VanEck suggests that if these bills are approved, 20 states could drive at least $23B in Bitcoin demand.
Moreover, the asset manager estimates that a national reserve with 1M Bitcoin could help to clear about $21 trillion or 18% of U.S. debt by 2049.
Quantum Threat to Bitcoin
While the potential benefits of a Bitcoin reserve are clear, there are also potential threats.
One such threat is the development of quantum chips, which could potentially crack Bitcoin and most current cryptographic systems.
Microsoft’s CEO, Satya Nadella, believes that their quantum chip could achieve one million Qbits by 2027-2029, enough to crack Bitcoin wallets.
According to Bitcoin trading platform River, such a computer could crack Bitcoin wallets in just two weeks.
Thus, the Bitcoin network needs to be quantum-proof before 2027, or 5.9M Bitcoin could be at immediate risk.
There are already proposals in place, such as QuBit, to make the Bitcoin network ready for the post-quantum era.
However, it is uncertain if the researchers can upgrade the network in time, which could impact states’ plans for a Bitcoin reserve.
