Bitcoin Price Drops Amid Quantum Computing Fears and $100M Hardware Wallet Hack

The Bitcoin price has dropped after a massive $100 million attack on one of the most trusted hardware wallets, leaving investors spooked. The unexpected attack has sparked fears that the security of crypto assets is at risk, with some warning that quantum computers could break digital signature codes and compromise wallet protection in as little as three years.

IBM CEO Arvind Krishna told CNBC's Mad Money that he thinks people should be 'paranoid' about the threat of cryptography-breaking quantum computers by 2028 or 2029, with a measurable impact on IBM's top line and bottom line. He estimated that quantum computing could add a trillion dollars in value to the company.

The development of a fully-fledged quantum computer could potentially break the digital signature codes protecting Bitcoin wallets, putting nearly $500 billion worth of assets at risk. Google researchers recently published a paper warning that future quantum computers may be able to break some of the cryptography protecting Bitcoin and other digital assets with fewer resources than previously thought.

While IBM's accelerated timeline for quantum computing has raised concerns, not all investors are panicking. Some have taken Jim Cramer's exit from Bitcoin as a buying opportunity, with one trader suggesting that every time Cramer says sell, they add to their position.