Is Bitcoin Actually Secure?
Posted January 03, 2022
Imagine you built the perfect computer.
Meaning, it uses the absolute minimum amount of energy possible to record a change in a bit…
1 to 0…
0 to 1.
This computer is perfectly efficient. It reaches the absolute limits of thermodynamics. According to our laws of physics, further efficiency is impossible.
Now, get this…
Even with this perfectly efficient supercomputer, you couldn’t break the encryption of a single bitcoin private key.
That’s why some bitcoiners say that bitcoin is “secured by the laws of physics.”
Even the most efficient computer couldn’t crack it without violating the laws of physics.
Of course, quantum computers could change that.
We talk about quantum computing… and what to expect… in our Big Book of Crypto. The gist? Quantum computers are years away. And quantum resistant crypto is already on the rise.
But that doesn’t mean you shouldn’t embrace best practices.
In anticipation, for example, here’s a simple strategy you can use today to become “quantum resistant”: limit reusing addresses.
“Once you spend from an address,” says bitcoiner Jameson Lopp, “you expose the address’ public key on-chain. By withholding your public keys, you make it harder for a quantum computer to eventually target you with reverse engineering. This is a tactic that you can use today.”
In other words, stick your long-term holdings in a wallet you never use. (And if you do use it, transfer your coins to a new address.)
By the way…
There’s a good reason we’re rapping about bitcoin security today…
Happy “Proof of Keys Day”
Every year, on January 3rd, bitcoiners celebrate “Proof of Keys Day.”
It falls on the anniversary of the first bitcoin block mined — called the “Genesis Block.”
It’s a day to commemorate the biggest promise of bitcoin; financial sovereignty.
To do so, bitcoiners encourage newer crypto investors to move their funds from exchanges to their personal wallets.
By taking control over their private keys, you ensure nobody can access your funds except you.
And again, instead of relying on banks, custodians, politicians, or any other third parties…
You’re relying on math. You’re relying on the laws of physics to protect your wealth.
So far, it’s been a pretty good bet.
Happy Proof of Keys Day.
If you own any crypto on exchanges…
Take today to seize custody of it by moving it to a wallet where you own your private keys.
As they say…
Not your keys, not your coins.
For Altucher Confidential