Quantum Blockchain Technologies Share Price Analysis
Quantum Blockchain Technologies share price (AIM: QBT) came into the investors' focus last month as the company announced great results due to its AI and mining operations.
Stocks of this blockchain investment company jumped over 20% after the group revealed it filed a patent application for a pioneering new Bitcoin mining algorithm that runs on a quantum computation model and is qubit-based.
The company said it plans to conduct further aggressive R&D and investment tactics within the blockchain sector, including crypto mining and other apps.
The Quantum Blockchain Technologies' share price will very likely depend on the professional recently appointed by the company to lead an AI research group and find the optimal way of mining Bitcoin.
Usually, investors are eager to give money when they believe their profit will come faster. With quantum computers, some exact calculations are conducted much more quickly than home computers would do them. Nowadays, there are concerns that quantum computers could be grinding crypto mining operations needed to create new blocks. That would mean that these computers would be privileged before other miners and therefore present a threat to proof-of-work blockchain consensus by disturbing the decentralization and security of those blockchains.
However, this also means that the whole process would come to a new level, with the mining process becoming increasingly automated. In the end, this would present more significant profits for the stockholders. Along with the application-specific integrated circuit (ASIC) miner, this technology will most likely increase the hashing speed compared to other ASIC announced by competitors.
Quantum Hopes for More Speed Increase
Quantum Blockchain Technologies' share price could keep its bullish trend for a while. The company has confirmed plans to create new partnerships with other start-ups within the blockchain and cryptocurrency space.
QBT CEO Francesco Gardin confirmed impressive progress in all R&D areas and added the expectation is "higher performance than originally estimated".
Gardin said results will be verified before any "cooling techniques", which could allow for further increases in speed, are implemented. Still, as we already mentioned, some analysts advocate theories about quantum computers posing a serious challenge to the Bitcoin blockchain security.
According to the last reports, approximately 25% of the active Bitcoins are exposed to a possible quantum attack, meaning they are usually stored in an exposed wallet. And even though transferring tokens to a new p2pkh address would temporarily help, one may still be affected if all the people who hold vulnerable coins do the same.
That would bring us to a situation where, in the case of a major hack such as Mt. Gox, the price of Bitcoin (and therefore of Quantum Blockchain Technologies share price) would plunge together with the investors' confidence.
Quantum computers could act in the way they destroy the Bitcoin transaction process because of their speed. However, there is a cure for that as well. A new type of cryptography dubbed 'post-quantum cryptography' is expected to be intrinsically immune to quantum attacks. However, these types of algorithms are still in diapers and are still being studied.
At the time of writing, the price of Quantum Blockchain Technologies shares stood at 2.84 GBX, down by 1.90%.
Author: Teuta Franjkovic
A sincere writer with a strong will to share knowledge on all things blockchain, crypto, metaverse and DeFi. Starting out as a writer with Cosmopolitan, Teuta has risen through the ranks of business journalism, editing newspapers and websites within the fintech industry for over 15 years. She holds a double MA in Public Politics and Entrepreneurship.