What if there was a way to break Bitcoin? To hack it apart? To tear apart its foundation? Is there such a way? Yes… if P=NP.
To begin, the world of Bitcoin and other cryptocurrencies is largely based on the exploitation of algorithmic and computational asymmetries. The decentralization characteristics that Bitcoin achieves is actually powered by these asymmetries, specifically two types of asymmetries:
1. Algorithmic Asymmetry
2. Computational Asymmetry
To break Bitcoin, or any other cryptocurrency, one must be able to break apart its asymmetries. So what is an asymmetry and how does this all relate to this equation P=NP?
(You may even ask: what does P and NP even mean?)
To understand what I mean by asymmetry, let’s first understand the basic concept of symmetry. Symmetry is something that most people learn about in grade school. For example, if you map, reflect, or flip an object across a line or a plane (also called the axis of symmetry or plane of symmetry) and it maintains it structure, then you’ve achieved symmetry. If you know a little simple mathematics, you can establish that f(x) = f(-x) represents a symmetry along the y-axis. If symmetry can be described as an invariance to transformation, then asymmetry represents the opposite fact: it means that one side does not look like the other side; one side does not match the other.
So how does this all relate back to Bitcoin and our digital world? The premise of the digital world, including Bitcoin, is founded on manufacturing elements of trust — trust that a transaction will be free from nefarious actions, and trust that the information sent between two parties is intact, whole, and tamper-proof. In the world of Bitcoin, this trust is established via leveraging two asymmetries:
1. Algorithmic Asymmetry: Public Key Cryptography
2. Computational Asymmetry: Proof of Work
This isn’t supposed to be a math lesson — but advanced caliber mathematics do play a heavy role in making Bitcoin possible. Furthermore, you cannot really understand how Bitcoin works if you don’t have a grasp of the underpinning asymmetries. So to make the topic a bit more tangible, let’s describe exactly what’s meant by…
I am an enthusiast and expert in the field of cryptocurrency, particularly Bitcoin, with a deep understanding of its underlying principles and technologies. My knowledge extends to advanced topics in mathematics and computer science, allowing me to delve into the intricate details of cryptographic algorithms and computational processes that form the basis of cryptocurrencies.
Now, let's address the concepts mentioned in the article by Hara K. Brar:
Algorithmic Asymmetry: Public Key Cryptography
Bitcoin relies on a cryptographic technique known as Public Key Cryptography to establish trust in transactions. In traditional symmetric-key cryptography, the same key is used for both encryption and decryption, creating a symmetry. However, Public Key Cryptography introduces an asymmetry by using a pair of keys: a public key for encryption and a private key for decryption. This ensures that information encrypted with the public key can only be decrypted with the corresponding private key, providing a level of security crucial for the functioning of Bitcoin.
Computational Asymmetry: Proof of Work
The second asymmetry crucial to Bitcoin is Computational Asymmetry, achieved through the Proof of Work (PoW) consensus mechanism. PoW requires network participants, known as miners, to solve complex mathematical puzzles in order to validate transactions and add them to the blockchain. This process is computationally intensive and time-consuming but easy to verify. It creates an asymmetry where the effort to validate transactions (the work) is asymmetrically harder than verifying the correctness of the validated transactions. This difficulty in solving the puzzles adds a layer of security and decentralization to the network.
P=NP and Breaking Bitcoin
The article hints at the possibility of breaking Bitcoin by introducing the concept of P=NP. In computer science, P and NP are classes of decision problems. P represents problems that can be solved in polynomial time, while NP represents problems for which a solution can be verified quickly but not necessarily found quickly. If P were to equal NP, it would mean that problems initially thought to be hard to solve quickly are actually easy to solve. This could potentially have implications for the cryptographic algorithms and computational processes underlying Bitcoin. However, it's important to note that the statement about breaking Bitcoin is speculative, and the P=NP problem remains one of the unsolved mysteries in computer science.
In summary, the article discusses the foundational asymmetries in Bitcoin—Algorithmic Asymmetry through Public Key Cryptography and Computational Asymmetry through Proof of Work. It also raises the intriguing idea of the impact of P=NP on the security of Bitcoin, highlighting the intricate relationship between cryptography, computational complexity, and the stability of cryptocurrency networks.
If you think you have a proof that P=NP then it is worth a lot of money. Well for sure, at least, you will get a prize like the Turing Award. But because it would break bitcoin and other digital monies you would possibly get into the thicket of billions of dollars. Maybe more like trillions.
Bitcoin's price changes because of its supply, the market's demand, media and news, and regulatory changes. Some research suggests that the cost of producing a bitcoin also influences its prices, but most reports used assumed data rather than facts.
It is quite likely that a bitcoin price crash will result in a correction in their prices as well. It is also certain that the vast majority of cryptocurrencies that populate the current listings will disappear.
The chances of Bitcoin becoming zero are very slim. According to a 2018 report by two Yale economists, the risk-neutral disaster probability of Bitcoin crashing to zero is around 0.4%. This means that there is a 0.4% chance that an unspecified disaster could cause the price of Bitcoin to drop to zero.
You can predict cryptocurrency prices by using techniques such as crypto technical analysis, fundamental analysis, on-chain research, and market sentiment evaluation. Technical analysis thrives in crypto due to its high volatility. It presupposes using specific crypto analysis tools and patterns to predict prices.
Assuming no overlap between exchange users and on-chain addresses (though some overlap likely exists), the number of individuals owning more than 1 Bitcoin is around 1.5 million. This represents just 0.36% of the 420 million cryptocurrency users, highlighting how uncommon it is to own 1 Bitcoin in the crypto world.
Your bitcoin ownership is safely recorded, stored, validated, and encrypted on the blockchain. To date, there are no known events where cryptocurrency has been stolen by altering the information on a blockchain because of the encryption methods used.
Delivering bitcoin transaction data to miners requires internet-enabled devices. As a digital currency, you cannot buy, sell or exchange bitcoin without the internet.
While answering the question of whether can crypto go negative, it cannot. But there are plenty of ways to lose money in the crypto field. Hence, keeping a close eye on your crypto investments and only investing after thorough research to identify a good cryptocurrency project is essential.
By getting investors excited about the future of Bitcoin, she could attract more inflows to her ETF. If Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000.
A reasonable assumption that Bitcoin could hypothetically reach the null state of it's value is worth the thought. Even-though such an event is very less likely to take place, there are some factors that could theoretically lead to Bitcoin price crashing to zero.
The launch of spot bitcoin ETFs in early 2024 significantly improved bitcoin's fundamental outlook. But the momentum has faded, and the rally has stalled. There is also no clear bullish catalyst to drive prices higher in the near term.
Unlike fiat currencies, such as the Euro or the US-Dollar, the value of Bitcoin (BTC) is not defined by a single entity like a central bank. Instead, the price is influenced by supply and demand. Or, in simpler terms, by how much people are willing to pay for it.
Like any other asset, the fundamental economic principle of supply and demand is pivotal in determining cryptocurrency prices. Prices tend to rise when the demand for a particular coin surpasses its available supply. On the other hand, if the supply outweighs demand, prices can plummet.
There's no way to predict when crypto markets will go up or down at any moment. The market perception of a given coin depends on the confidence of its investors.
Bitcoin is a highly volatile asset, meaning prices can fluctuate dramatically over a short period of time. Factors that may drive Bitcoin's price down include public attention (or lack thereof), regulatory concerns, macroeconomic conditions, “black swan” events and more.
Introduction: My name is Mrs. Angelic Larkin, I am a cute, charming, funny, determined, inexpensive, joyous, cheerful person who loves writing and wants to share my knowledge and understanding with you.
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