Google achieves quantum computing milestone; Bitcoin security unaffected; crypto majors recover despite inflation concerns and MicroStrategy faces potential index removal.
Macro & Markets ·
Google's Quantum AI division achieved a significant reduction in quantum computing errors using its Willow chip, cutting a critical error class roughly 40-fold according to research published in Science. The breakthrough applies error-correction techniques that filter impure quantum states, with survivors reaching 99.99% fidelity. However, breaking RSA-2048 encryption would require error rates around one in 10 billion—roughly a million times cleaner than Google's current result—meaning Bitcoin remains secure against this threat for now.
The quantum advancement arrives as researchers track a narrowing gap between theory and capability. Estimates for cracking RSA-2048 fell from 20 million noisy qubits in 2019 to under one million by 2025, with a March 2026 Google whitepaper suggesting Bitcoin's elliptic curve cryptography could theoretically be targeted with under 500,000 physical qubits. Willow currently operates 105 qubits. Meanwhile, some researchers emphasize an alternative risk: AI-driven mathematics potentially breaking elliptic curves on ordinary hardware within months rather than years, prompting large holders to move funds to unused addresses.
Several blockchain projects are moving toward quantum resistance. Sui has quantum-safe transactions running on testnet, while Ethereum, Zcash, and Near have announced preparation plans. In market action, crypto majors rebounded despite hot inflation data, with MicroStrategy facing potential removal from major indexes after MSCI finalized new rules for non-operating companies, while the White House lost its crypto policy lead following Patrick Witt's departure.