Bitcoin's Cryptographic Security Concerns: Elon Musk's Query to Grok and Tesla's Holdings

Elon Musk asked Grok, an AI chatbot, about the probability of Bitcoin's SHA-256 hashing algorithm being cracked by quantum computing. Grok estimated that the probability of Bitcoin's hashing algorithm getting cracked by 2035 is less than 10%. Musk is concerned about the security of Bitcoin, but Grok assures that Bitcoin is safe for now. Tesla currently holds 11,509 Bitcoins worth $1.31 billion.

In a recent development, Elon Musk, the CEO of Tesla and SpaceX, sought insights from Grok, an AI chatbot embedded in the social media network, regarding the potential risks of Bitcoin's cryptographic security. Musk's concern stems from the advancements in quantum computing, which could potentially compromise the security of Bitcoin's SHA-256 hashing algorithm.

Grok, in response, cited assessments from NIST, IBM, and expert surveys that the probability of Bitcoin's SHA-256 algorithm being cracked by quantum computing within the next five years is near zero. By 2035, the probability is estimated to be less than 10%. These assessments suggest that existing quantum computers, with their current capabilities, are far from the millions of error-corrected qubits needed to crack Bitcoin's encryption.

The AI chatbot also noted that while SHA-3 or SHA-512 could potentially replace SHA-256 in the future, the current security measures are robust enough to withstand near-term quantum threats. This reassurance comes at a time when major tech companies like IBM are sharing ambitious quantum-focused roadmaps, aiming to release highly complex quantum systems by 2033.

Meanwhile, Tesla's Bitcoin holdings remain a topic of interest. As of the latest reports, Tesla holds 11,509 Bitcoins, valued at approximately $1.31 billion. This significant holding underscores Musk's continued support for the cryptocurrency, despite recent market volatility and regulatory scrutiny.

SpaceX, another Musk-led company, also holds a substantial amount of Bitcoin. Last week, a Bitcoin wallet linked to SpaceX moved 1,300 BTC, worth over $153 million, to a new address. The move, which occurred after three years of inactivity, has sparked speculation about potential reasons behind the transfer. While SpaceX has not commented on the move, it is likely indicative of a wallet custody adjustment or an impending sell-off.

In conclusion, while Elon Musk's query about Bitcoin's quantum security highlights the evolving landscape of cryptographic threats, Grok's assessment provides a reassuring outlook for the near-term security of Bitcoin. Musk's continued investment in Bitcoin, through both Tesla and SpaceX, reflects his confidence in the cryptocurrency's long-term viability.

References:
[1] https://u.today/musk-asks-grok-if-bitcoin-can-get-hacked-details
[2] https://m.economictimes.com/news/international/us/spacex-bitcoin-news-elon-musks-spacex-just-moved-bitcoin-after-3-years-should-crypto-investors-panic-elon-musk-news-cryptocurrency-news/articleshow/122955466.cms
[3] https://www.ccn.com/education/crypto/quantum-computers-could-break-bitcoin-why-solana-sui-might-survive/