Recently, you may have seen many posts on Binance Square regarding Binance converting its $1 billion SAFU fund into $BTC . Many people are still wondering what SAFU is.
SAFU is a short form of "Secure Asset Fund For Users". It was created was Binance in 2018 to protect users if something goes wrong, like a hack or major security breach. Binance sets aside a percentage of trading fees into a separate cold wallet for SAFU. This fund was used to recover the losses caused by a hack in 2019, which stole 7,000 Bitcoin from Binance. This fund is a testament to why so many people choose Binance for their trading activities because it is much more secure than other exchanges.
Will Quantum Computers Destroy Crypto? The Truth Explained
Quantum Computer Explained In Simple Words: A normal computer uses bits, each bit is either 0 or 1, however quantum computers use qubits. A qubit can be 0 or 1 or both at the same time(this third scenario is called superposition). On top of that, qubits can be linked together in a weird way called Entanglement, meaning changing one can instantly affect the other. In simple words, A normal computer tries every door one by one, while a quantum computer can try many doors at the same time. That’s why they’re powerful — for certain types of problems. However they are only good at specific mathematical problems, not everything. Do Quantum Computers Exist Right Now? Yes, companies like Google, IBM, Microsoft, have built early quantum machines. However, they are extremely unstable, make a lot of errors and require near absolute-zero temperatures. So technically, they are not practical yet. So we are likely decades away from real quantum computers. Why Do People Say Quantum Computers Threaten Crypto? Most cryptocurrencies($BTC , $ETH ) rely on Elliptic Curve Cryptography (ECC) and Public-Key Cryptography. A quantum algorithm called Shor’s Algorithm could theoretically derive private keys from public keys and break digital signatures. If that happens, someone could steal coins, wallet security would collapse and Blockchain trust would be shaken.
It’s Not Just Crypto — It’s Everything If quantum computers break encryption, they don’t just attack Bitcoin. They would also break: i) Online banking systems
ii) Credit cards
iii) Military communication
iv) Government data
v) HTTPS websites
vi) Email encryption
vii) Cloud security
viii) VPN systems
ix) Stock exchanges
x) Nuclear facility systems
Basically: the entire digital world.
The Myth: “Quantum Will Kill Bitcoin”
This idea is exaggerated because:
i) Most Bitcoin addresses don’t expose their public key until you spend.
If you never move coins, they’re harder to attack.
ii) Developers can upgrade crypto.
Crypto can move to Post-quantum cryptography and Quantum-resistant signature schemes.
iii) The world will see it coming.
Building a large-scale quantum computer cannot be hidden. It would take years of public research. There would be warning signs.
Possible Solutions:
The good news is that developers are already working on the solution before it even hits us. Here are some of possible solutions:
i) Post-Quantum Cryptography (PQC)
These are encryption methods designed to resist quantum attacks. The U.S. National Institute of Standards and Technology (NIST) is already standardizing quantum-resistant algorithms.
ii) Migration Strategy
If quantum computers get close to dangerous levels, Users could transfer coins to quantum-safe wallets
Should Crypto Investors Be Worried?
Right now, we have more serious things to worry about like regulation of cryptocurrencies, market cycles, liquidity, ensuring proper security of your accounts, poor risk management. There is a famous saying, “Don’t Count Your Chickens Before They Hatch”. So this quantum risk has not even hatched and we are counting it.
Final Thoughts:
Quantum computers are real and very powerful in theory. However, they are most likely to advance medicine, improve material science and optimize logistics. They are very unlikely to come into wrong hands because they could be more precious than nuclear technology. #quantumcomputers
TOP 5 HISTORICAL WARNING SIGNS THAT SUGGEST THAT BULL MARKET IS ENDING
History tells us that bull markets do not end randomly. They do not die due to one tweet, one news or one red candle. It takes a lot of factors to kill the upward momentum of markets. Historical crashes, like Dot Com Bubble Crash(2000) and Financial Crisis(2008), show that market leaves some clues before crashing completely. Lets analyze some of those historical clues:
1- EXTREME RETAIL EUPHORIA: When everyone feels like a genius and starts investing blindly, danger is likely close. In 2000, taxi drivers were giving advice on which stocks should you buy. In 2021, many people quit their job because they thought crypto market is very easy to make money from. This is classical retail euphoria. During this phase: i) Search terms related to buying stocks, crypto or metals,spike on google ii) Finance influence multiply overnight. iii) Risk appetite is extremely high. iv) "This time it is different" becomes common language. Markets don’t crash when people are scared.They crash when everyone believes prices can only go up.
2- PARABOLIC PRICE CHARTS: Before any major crash, the chart of that certain financial item generally goes parabolic without any major correction. There are mostly green candles on the chart with little pullback. History tells us that such momentum does not last forever and eventually the market corrects itself or completely crashes.
3- LIQUIDITY TIGHTENING BY CENTRAL BANKS:
Bull Markets are fueled by liquidity and any setback to liquidity is detrimental for the market. Whenever the interest rates, risk assets often tend to suffer due to lack of liquidity.
For example, in 2022, Federal Reserve starting hiking the rates and Tech stocks and crypto collapsed.
4- DIVERGENCE BETWEEN SMART MONEY AND RETAIL
Smart money often quietly sells the market at the end of a bull run. You often see:
i) CEOs selling their shares
ii) Big Institutions quiting the markets
5- EXCESSIVE LEVERAGE AND SPECULATION:
High Leverage is the ultimate receipe for disaster.
Whenever the market is about to top, we see:
i) High margin debts
ii) Massive futures open interest
iii) Overvalued IPOs with no profits
Leverage accelerates gains, but it also accelerates collapses. #MarketRally #BitcoinGoogleSearchesSurge
Do not lose your capital at any cost and be patient, do not chase any trade, it is better to miss out then lose.
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$XAU $XAG $BTC JUST A REMINDER: US-IRAN NUCLEAR TALKS BEGIN TODAY IN OMAN
Topics under discussion will be nuclear programme of Iran and missiles of Iran. To be honest, US has got a gun on Iran's head, in the form of Armada near Iran's waters. If Iran does not agree to demands, then boom goes the Armada.