Google’s Digital Money Could Be Great Threat to Bitcoin

By Congecko News On Nov 19, 2019

Early this year, Google claimed that had built a quantum computer able to solve formerly impossible mathematical calculations–with some fearing bitcoin could be at risk. Google “Quantum supremacy” means it to be able to perform in 200 seconds what would take a powerful computer 10,000 years and potentially break bitcoin’s cryptography.

According to this report, the Bitcoin and cryptocurrency industry can be spooked, however, it likely will not. Additionally, the world’s biggest technology companies–with others, including Apple and Amazon showed their interest in bitcoin and crypto space, which makes the BTC price has increased this year.

The important thing is now Google and Citigroup in partnership. They have said it’s planning to issue its own fully-fledged “smart checking” bank accounts via Google Pay–piling pressure on bitcoin developers to ameliorate user experience and adoption or face redundancy.

As the planning of the search giant, a bank account will have code-named Cache and expected to allow users to add it’s analytic tools to traditional banking products, is due to be launched sometime next year, alongside Facebook’s planned bitcoin rival, Libra.

“Our approach is to become a partner deeply with banks and the financial system. This is perhaps the slightly longer path, but it’s more sustainable. If we can help more people do more things in a digital way online, that’s good for the internet and good for us” Google executive, Caesar Sengupta said to the Wall Street Journal newspaper.

He also added that Google isn’t planning on selling the financial data of its checking account users. It doesn’t currently share data from its Google Pay service, which boasted about 11.1 million U.S. users last year, with advertisers.

Google has moved after a series of things happened such as launching Goldman Sachs-backed credit card of Apple this last summer, ride-hailing app Uber’s offer of bank accounts and credit to drivers and Amazon’s plans to introduce personal accounts for customers.

While BTC and other major cryptocurrencies have struggled to attract new users and retail acceptance with price speculation still the biggest driver of bitcoin interest.

Bitcoin evangelists point to the reason lead to bitcoin’s final success is the user can control alternative to the fiat currency system and emphasize the need for a decentralized. Nevertheless, the world’s technology giants are moving fast to implement many of bitcoin and crypto’s most highly prized features.

Despite public concerns surrounding data privacy, digital security and the power of the tech giant, users are still not giving up their services – Google’s superior digital money service could be a greater threat to bitcoin than its quantum supremacy.

How Do Quantum Computers Work?

Quantum computers perform calculations based on the probability of an object’s state before it is measured – instead of just 1s or 0s – which means they have the potential to process exponentially more data compared to classical computers.

Classical computers carry out logical operations using the definite position of a physical state. These are usually binary, meaning its operations are based on one of two positions. A single state – such as on or off, up or down, 1 or 0 – is called a bit.

In quantum computing, operations instead use the quantum state of an object to produce what’s known as a qubit. These states are the undefined properties of an object before they’ve been detected, such as the spin of an electron or the polarisation of a photon.

Rather than having a clear position, unmeasured quantum states occur in a mixed ‘superposition’, not unlike a coin spinning through the air before it lands in your hand.

These superpositions can be entangled with those of other objects, meaning their final outcomes will be mathematically related even if we don’t know yet what they are.

The complex mathematics behind these unsettled states of entangled ‘spinning coins’ can be plugged into special algorithms to make short work of problems that would take a classical computer a long time to work out… if they could ever calculate them at all.

Such algorithms would be useful in solving complex mathematical problems, producing hard-to-break security codes, or predicting multiple particle interactions in chemical reactions.