Cryptocurrency markets are focused on a proposed technology update aimed at making the Bitcoin network more resilient to quantum computers. Some analysts in the field argue that an agreement on this could trigger a sharp revaluation of prices.
James Van Straten, senior analyst at crypto exchange Blish, commented on the Bitcoin Improvement Proposal 360 (BIP-360). Straten said the industry started taking the potential threat posed by quantum computing more seriously after the price of Bitcoin fell to the $60,000 level. He described this increased awareness as a “welcome development”.
According to Straten, the market could see a dramatic 50% to 100% revaluation of prices within weeks if a network-wide consensus is reached on a quantum-resistant solution. The analyst said reducing technical risks could boost investor confidence and pave the way for strong price gains.
But Straten pointed out that the process also comes with potential risks. In particular, uncertainty over the fate of Bitcoin, which is thought to belong to Satoshi Nakamoto and has been inactive for a long time, could cause market volatility, he said. The potential activity of such old wallets can have a decisive impact on investor sentiment.
As previously reported, Bitcoin Improvement Proposal 360 (BIP-360) has been added to the official codebase. This proposal aims to introduce a new output type called Pay-to-Merkle-Root (P2MR). The purpose of this planned soft fork is to strengthen the Bitcoin network’s defenses against potential cryptographic threats from future quantum computers.
*This is not investment advice.
