Remember the recent market correction?We analyzed the reasons and forecasts of analysts.So one of the triggers for the crypt collapse was the growing tension around the capabilities of Google's new Willow chip.How does this relate to cryptocurrency?Direct.A modern quantum processor can perform calculations in 5 minutes that would take the most powerful supercomputers 10 septillion years (that's a 1 followed by49 zeros).

This breakthrough raises an important question: Could quantum computing threaten Bitcoin and other cryptocurrencies? Willow has shown a reduction in errors when qubits are added to the 7x7 array and is capable of performing tasks that classical supercomputers could not accomplish even for the entire existence of the universe. The danger is that all cryptocurrencies are based on elliptic cryptography (ECC), which converts data at the expense of the computational complexity of solving certain onesmathematical problems.

In theory, with the help of quantum computers, it is theoretically possible to use Shor's algorithm to solve these problems much faster.However, to crack ECC you need a quantum computer with at least 1.5 million logical qubits.The Willow chip only has 105 qubits, which is far fromis away from the required amount.It will take decades to create a truly dangerous cryptographic encryption chip.

Although the quantum threat to Bitcoin is far away, the crypto community is already developing protection strategies. The US National Institute of Standards and Technology (NIST) is developing standards to protect digital assets from quantum attacks. Bitcoin developers are exploring the possibility of switching to quantum-resistant algorithms. Ethereum co-founder Vitalik Buterin also spoke about studying protection against quantum attacks by studying quantum-resistant cryptographic onesAlgorithms.

Some coins, including the 1 million BTC said to belong to Satoshi Nakamoto, are stored in a form that exposes public keys. This earlier version of storage is more vulnerable to quantum attacks. Researchers suggest freezing coins or stopping the use of such transactions altogether.

In 2024, crypto scammers received at least $9.9 billion.The most common schemes remain Financial pyramid and romance scams, which continue to bring billions of dollars in revenue to fraudsters.

This was reported by analytics firm Chainalysis. Experts note that this amount may increase as new illegal addresses linked to financial fraud are identified throughout the year.

One of the most popular schemes remains high-yield investment fraud (HYIS), based on the principles of the financial pyramid. In 2024, this scheme is responsible for 50.2% of all funds received by fraudsters, although its share in the total fraud volume decreased by 36.6% compared to 2023.

At the same time, the so-called pig slaughter, also known as romance fraud, is becoming increasingly popular. Its share of the total fraud volume increased by 40% and reached 33.2%. In this scheme, attackers build trusting, often romantic relationships with victims and then convince them to invest in fictitious cryptocurrency platforms or fundsinvest.

Analysts note that fraudsters are actively using artificial intelligence to enhance their schemes. Generative neural networks help them create fake documents for verification on exchanges and financial services. According to Alterya, 85% of fraud cases involve accounts that traditional identity verification systems successfullybypass.

Most illegally obtained funds are transferred to centralized exchanges (CEX). However, decentralized finance (DeFi) protocols are also actively used, including on the Ethereum, Tron and Solana blockchains. In addition, since mid-2023, the role of the Huione Guarantee platform has increased, facilitating not only money laundering, but also a wide range of illegal services forprovides crypto criminals.

Given the scale of fraud, financial regulators and analytics firms are stepping up their efforts to combat cryptocrime. They are using artificial intelligence and new methods to identify suspicious transactions and thus track illicit cash flows more effectively.

Although preliminary estimates indicate some decline in fraudsters' income in 2024, the actual numbers could be record-breaking. Analysts note an average growth of 24% in fraudulent revenue in the annual reporting period. Thus, losses to victims of crypto fraudsters could exceed $12 billion by the end of the year.

Libdogecoin v0.1, a Dogecoin building block C library that enables direct and easy integration of Dogecoin into various platforms without requiring developers to have extensive blockchain knowledge, was recently released in early August, according to an announcement by core developer Michi LUMIN. Libdogecoin makes it easy for everyonemake to develop a product that conforms to the Dogecoin standard as it is a pure library without the ability to “run” a node.

The introduction that follows the integration highlights the Dogecoin Foundation's core, utility-focused approach. This is believed to be possible by supporting the community's ability to innovate by exposing Dogecoin's core functionality as a simple C library with bindings for multiple languages. Libdogecoin also serves as the foundation for projects such as RadioDoge and GigaWallet that aim toTo bring Dogecoin ecosystem to a state ready for rapid mass adoption.

Image: Watcher Guru

At the close on the Taiwan Stock Exchange, Taiwan Weighted fell 0.11%.

The biggest gainers among Taiwan Weighted Index components in today's trading were Oceanic Beverages Co Inc (TW:1213), which rose 1.15 points (9.70%) to close at 13.00.Asia Optical Co Inc (TW:3019) rose 8.00 points (6.67%) to close at 128.00.Alchip Technologies Ltd(TW:3661) rose 155.00 points (5.65%) to close at 2,900.00.

The top performers were Arima Communications Corp (TW:8101), which fell 2.20 points (10.00%) to end the session at 19.80. AzureWave Technologies Inc (TW:3694) rose 5.35 points (9.93%) to close at 48.55, while Lead Data Inc (TW:2443).fell 0.39 points (9.85%) and closed at 3.57.

On the Taiwan Stock Exchange, the number of securities whose price fell (0) exceeded the number of securities that closed in positive territory (0).

WTI crude oil futures for January delivery fell 1.22% or 0.87 to $70.42 a barrel.In other commodities, Brent crude oil futures for February delivery fell 0.46% or 0.34 to trade at $74.15 a barrel.Gold futures for February delivery fell 0.15% or4.04 to $2,671.76 per troy ounce.

Meanwhile in the foreign exchange market, the USD/TWD pair fell 0.10% to 32.48, while TWD/CNY rates remained unchanged by 0.13% to reach 0.22.

USD index futures fell 0.16% to 106.51.

Which stock should I buy in the next trade?

AI computing power is changing the stock market. Investing.com's ProPicks AI offers 6 winning stock portfolios selected by our advanced AI. In 2024 alone, ProPicks AI identified two stocks that rose over 150%, four more stocks that rose over 30%, and three more stocks that rose over 25%. What action willgive it next?

• BlackRock analysts believe that the proportion of Bitcoin in a traditional investment portfolio should be between 1% and 2%.
• They compared the risk level of this allocation to the stocks of the so-called “Magnificent Seven” companies.
• BlackRock ETF and Index Products Investment Director Samara Cohen is confident that this move will maximize Bitcoin's potential as a diversifier.

• The share of the first cryptocurrency in traditional investment portfolios should be 1-2%. This is stated in the report BlackRock Investment Institute.

  Experts called this a "reasonable range" for a standard 60/40 portfolio with 60% stocks and 40% bonds. Such a distribution would put Bitcoin on par with the so-called Magnificent 7 companies, which include Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla.

  The average market capitalization of the latter is almost 35% of the market capitalization of the S&P 500 index ($46 trillion).

  Note that, according to CoinMarketCap, Bitcoin's capitalization exceeds $2 trillion at the time of writing. Over the past 12 months, the price of the cryptocurrency has increased by more than 130%, compared to a 32% increase in the S&P 500 index, asForbes.

  noted.

  However, the share of the first cryptocurrency should not exceed 2% in the portfolio - this would lead to increased risks, the report says.

  "We offer an allocation solution [for the portfolio] that strikes the right balance given the significant volatility of Bitcoin's price. This move will maximize its potential as a diversifier while minimizing its contribution to overall portfolio risk," said Samara Cohen, chief investment officer for ETFs and index products at BlackRock.

  Experts at the world's largest company in terms of assets under management suggested further changes in attitudes towards the first cryptocurrency due to a number of factors. In particular — global fragmentation of the financial system, growing geopolitical tensions, lack of trust in banks and growing deficits.

  "Bitcoin's value increases as its given supply meets increasing demand and demand changes due to investors' belief in Bitcoin's potential for broader use," the report says.

  Experts emphasized that the widespread adoption of cryptocurrencies can promote their cross-border nature and decentralization.

  The BlackRock report also noted the first cryptocurrency's historically low correlation with traditional markets.

  According to Cohen, due to the events of the last two years, investors may have preferred cash and similar instruments in the portfolio that carry minimal risks. However, investors should rethink their strategy according to the new market conditions. In 2024, it is necessary to understand reinvestment risk, low interest rates and the need to shift to long-term asset allocation.

  Although BlackRock recommends most investors allocate a maximum of 2% to Bitcoin in a portfolio, future gains may be more difficult due to changes in return characteristics, the firm noted.

  Recall that the asset volume of the spot exchange-traded fund based on BlackRock's first cryptocurrency exceeded $50 billion.The company achieved this result in less than a year.

This year, a new financial product appeared on the cryptocurrency market - a crypto ETF, which makes it easier for large investors to buy top coins through well-known investment funds. In the winter, the world began to invest in Bitcoin ETFs, in the summer - in Ethereum ETFs. There are also talks about the prospects of widespread adoption of Solana ETFs2024. This trend can be seen in the Bitcoin price, which has risen by about a third since the beginning of this year - from 42.2 thousand US dollars to 59.1 thousand US dollars.Therefore, our editors decided to find out whether the popularity of crypto ETFs will help pull the price of famous coins out of the correction triggered by the fall in the value of cryptocurrencies and the US stock market in August.

Note: This material should not be considered financial or investment advice or an offer. Each crypto investor is personally responsible for decisions regarding investments in digital assets.

Did the cryptocurrency market recover in August

A serious correction in the top coins in the crypto market began in early August. According to Coinmarketcap, the tokens recorded a August the following decline:

• BTC fell to 49.8 thousand US dollars (early August – 64.8 thousand US dollars),
• ETH fell by $2226,000 (early August - $3196),
• SOL fell in price to $112,000 (early August - $170.8).

The overall decline in the Bitcoin price in the last summer month was 10.5%, Ether - 24%, Solana - 24.5%.

As we explained, a significant drop in the value of the top coins was caused by the Bank of Japan's decision to reduce the discount rate, as well as the release of weak quarterly reports by global technology companies. As a result, panic began among investors on theWorld Market:

• Shares of global tech giants plunged - Apple, Microsoft, Meta, etc.
• The yen-dollar pair experienced exchange rate fluctuations: the yen strengthened and the dollar fell.
• Investors have reconsidered their investment portfolios: They have withdrawn money from stocks and bought government bonds from various countries.

At the same time, despite the negative dynamics at the beginning of August, the price of these cryptocurrencies partially recovered. As of August 31, the coins cost:

• Bitcoin – 59.2 thousand US dollars,
• ether – $2524,
• solana - $137,

Experts believe that cryptocurrency attempts to return to pre-August levels are caused by two key factors:

1.Period after the halving.We would like to remind you that according to the technological model of digital gold, a halving of Bitcoin occurs every four years worldwide.After that, Bitcoin could rise to new historical highs within 6 months. This year, crypto investors expect such growth in October.

"This year's halving hasn't worked yet, so we can expect growth, but only after the election of the new US president, which will take place on June 5th. November will take place,” says financial advisor Mikhail Patsan.

2.In 2024, the crypto market will be greatly affected by the popularity of spot bitcoin ETF. The fact is that from time to time there is a significant capital inflow into cryptocurrencies and then the probability is greaterthat the cryptocurrency price is rising.

What investment amounts affect the dynamics of the coin exchange rate?Let's give an example.According to data Sosovalue came in the lastAugust week saw an outflow of $277 million from Bitcoin- ETF.But a week earlier, there was an inflow of money into the BTC ETF: institutions then invested around $506.7 million in this instrument.That is, in the last two weeks there has been a positive trend in investments in bitcoin-ETF.

In general, financial analyst Andrey Shevchishin is confident that the positive sentiment of the Bitcoin exchange rate this year will be most influenced not by the halving, but by the inflow of money from large investors in cryptocurrencies through ETF funds.

"Halving traditionally has an impact on the price of digital gold. However, the main factors influencing the crypto market were ETFs, stock market regulation and the sale of confiscated or frozen assets," notes the expert.

How crypto ETFs are changing the cryptocurrency market

The emergence of crypto ETFs allows us to move digital coins from the gray area into the legal realm, as the instrument has become a simple and familiar investment method for most, notes financial analyst Andrey Shevchishin.

Financial advisor Mikhail Patsan agrees that crypto ETFs have become very popular.For understanding, it provides the investment statistics for the second quarter of 2024.

"Institutional investors have significantly increased their investments in crypto ETFs, especially Bitcoin ETFs, as seen in the second quarter of 2024. Growth in institutional investments reached 27% during this period, a sign of investor confidence in the long-term potential of cryptocurrenciesis.The share of institutional investors in the total assets under management (AUM) for crypto ETFs rose from 21.4% to 24% in the second quarter alone, reflecting a significant increase in interest from major players.– explains the boy in a comment to Delo.ua.

What are the prospects for crypto ETFs in the cryptocurrency market

Andrey Shevchishin notes that the crypto ETF has not yet shown the full potential of the cryptocurrency market in the legal field. The fact is that when comparing the capitalization of crypto funds and traditional stock or bond funds, it becomes obvious that crypto is still an underdog. However, the crypto market is still at the beginning of its legalization. Investors' interest in digital coinsgrows.

President-elect Donald Trump's promises to impose tariffs on trading partners and possible retaliation could destabilize markets such as oil, metals and agriculture as traders also look to stimulus from China to boost consumption, the bank said in its 2025 outlook.

"We expect much of the mix to decline in 2025, with supply and demand conditions relatively comfortable," Warren Patterson and Eva Manthey said in the report. "A possible escalation in trade tensions poses a downside risk as markets wait to see when and how China's support measures will impact commodity markets."

Although Trump is unlikely to affect U.S. oil production, the commodity is expected to come under pressure due to a sharp increase in non-OPEC supply.ING predicts the average Brent price will fall to $71 a barrel next year from around $74 currently. Meanwhile, new U.S. LNG export facilities could boost domestic demand and prices, allowing Europe to more easily offset supplies from Russia, leading to lower natural gas prices in the region in the event of a normal winter.

At the same time, ING predicts that gold will continue to set records due to geopolitical concerns and the average price will be $2,760 per ounce in 2025.

On Thursday, futures for the yellow metal are trading slightly lower, testing the $2,750 an ounce level.The spot price is $2,718 at 10:02 Moscow time.

The bulk of the buying will come from central banks looking to diversify their foreign exchange reserves, and heightened trade and geopolitical tensions could increase gold's safe-haven appeal.

The outlook for industrial metals is bleaker, with trade factors, possible changes in Biden's climate laws and Chinese demand likely to play a role.Copper will average $8,900 a ton in 2025, up from over $9,200 currently. Grains are likely to be a key target in any disputes, while weather concerns continue to weigh on agricultural commodities and cocoa and coffee prices are expected to fluctuate further next year.

Palihapitiya believes that the encryption system that underlies Bitcoin - SHA-256 - can be broken in the next 2-5 years thanks to advances in quantum computing, as he explained during the All-In podcast published on December 13.

"I had to figure out how long it would take us to break the encryption standards we use for Bitcoin. We need about 8000 chips to crack SHA-256. We are in a two- to five-year window in which blockchains will need to implement new hashing algorithms,” Palihapitiya said.

Willow, which the billionaire says could accelerate the breakthrough of cryptographic standards protecting BTC and other digital currencies, is a major development in this space.

Although the technology to achieve this level of quantum computing is still in its early stages, Palihapitiya suggested that the chip represents a significant step toward achieving this capability. However, he acknowledged that there are still many challenges ahead, particularly in scaling the technology.

The investor noted that Bitcoin and other blockchain networks need to adapt quickly by adopting new encryption algorithms to ensure their security.

At the same time, Palihapitiya is optimistic about the future of cryptocurrencies. He believes that the development of quantum computing can stimulate the development of new encryption methods that can withstand all attacks.

Discussion about Bitcoin hacking

Interestingly, not all crypto market experts agree that quantum computing poses a serious threat to Bitcoin. CryptoQuant platform founder Ki Young Ju, for example, believes it is unlikely that Bitcoin will be hacked before the end of this decade.

If Bitcoin's modern encryption is compromised, the community has a plan of action proposed by its creator Satoshi Nakamoto. Back in 2010, he wrote in a post on BitcoinTalk that users can negotiate the latest secure state of the blockchain and switch to a new algorithm if the SHA-256 algorithm becomes unreliable.

“If SHA-256 were broken completely, I think we could agree on the correct state of the blockchain before the problems started, commit it, and move forward with a new hash function,” Satoshi noted.

Some experts see another potential threat – early Satoshi coins. They use the old Pay-To-Public Key (P2PK) format, which exposes the public key and can be vulnerable to attacks. Avalanche founder Emin Gün Sirer warns that the community may consider freezing or setting an expiration date for these coins.

Market Reaction to Advances in Quantum Computing

News about Google's development caused panic in the cryptocurrency market. This led to the liquidation of about $1.6 billion in assets in just 24 hours.

However, Bitcoin quickly recovered and crossed the $100,000 mark again.Additionally, the coin hit a new all-time high of $106,000 today, December 16th.