CNBC Mad Money host Jim Cramer is selling his Bitcoin (CRYPTO: BTC), but not for the reason you might think. He's not dumping crypto for artificial intelligence stocks in search of higher returns, as many investors are now doing. Instead, Jim Cramer is selling his Bitcoin because he's worried about the "quantum threat." In short, he's concerned that super-powerful quantum computers will soon be able to crack Bitcoin's cryptography, potentially leading to hundreds of billions of dollars in losses for crypto investors.
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Continue » Cryptocurrencies are valuable for the cryptographic encryption they provide. If that encryption is ever put at risk, it could lead to a crisis of investor confidence. That's why the so-called "quantum threat" posed by quantum computers has been percolating around Bitcoin for nearly a decade now.
The good news is that today's computers, no matter how powerful they are, have no realistic chances of breaking Bitcoin's encryption. But what about tomorrow's computers? That's what has Jim Cramer worried.
Earlier this year, the quantum computing research unit at Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) made headlines when it suggested that Bitcoin might be at much more risk than ever suspected. As much as one-third of all Bitcoin in the world might be at risk. And the threat, far from being some far-off science fiction reality, might actually materialize within the span of just a few years.
No wonder, then, that a number of high-profile investors have already thrown in the towel on Bitcoin. Cramer did so after IBM (NYSE: IBM) CEO Arvind Krishna appeared on Mad Money to comment on quantum computers and the quantum threat. However, plenty of investors think the quantum threat is way overblown.
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