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Vitalik Buterin Says Bitcoin Can Adapt to Future AI Security Threats

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Bitcoin (BTC) has made headlines, garnering a debate between Silicon Valley investor Liron Shapira and Ethereum co-founder Vitalik Buterin. Initially, Shapira said there is a chance that Bitcoin’s price could plunge by 50% in the next 2 years. This statement came amidst the advances in artificial intelligence that hinders the security and robustness assumptions around cryptocurrency. Later, he reduced the probability percentage to 40, subsequent to comments from Buterin and AI researcher Eliezer Yudkowsky. Buterin chose the optimistic side and said BTC can survive the latter through upgrades to mining pools and clients.

Liron Shapira’s 50% Bitcoin Crash Risk

On X, Shapira said that he believed there was a 50% possibility Bitcoin would experience a larger price crash within two years. This was because of AI undermining what people believed were safety and robustness guarantees. He later updated his chance to 40% after subsequent comments from Buterin and Eliezer Yudkowsky.

Shapira also recognized plunging miner rewards as another reason that could lead to BTC’s price plunging over the next few years. The discussion focuses on whether advances in artificial intelligence could create security issues that BTC’s existing infrastructure may be unable to address.

The conversation also raises questions about how swiftly a decentralized network can respond when technological threats require changes to its underlying systems. Buterin disagreed with Shapira’s perspective and said, “I take the opposite side of that.”

Buterin said his basic reason is that he remains positive about cyber safety in the long term. He sees the core challenge as successfully managing a transition when problems arise rather than assuming that Bitcoin will be unable to deal with them.

As per Buterin, Bitcoin should be capable of dealing with issues that do not require broad social consensus. He points to changes involving clients and mining pools as examples of upgrades that could be made to deal with such hacks. Buterin also said he believes the possibility of actual breaks in Bitcoin’s hash function, or proof of work, is minimal.

The disagreement centered on two different expectations for BTC’s ability to answer to technological change. Shapira is concerned that artificial intelligence could affect assumptions around network security, while Buterin expects technical upgrades to provide a route for BTC to deal with upcoming threats.

AI and Quantum Computing Challenge Bitcoin’s Safety

The discussion comes amid surging concerns about how new technologies could hamper cryptocurrency security. The debate’s focal point is that high-end systems could eventually challenge cryptographic protections used by blockchain networks. 

The G7’s Cybersecurity Working Group has advised that quantum computers could hack encrypted systems that are considered secure. The group is requesting federal authorities to brace for the transition toward post-quantum cryptography. This is before such technologies create serious security threats.

Bitcoin could be exposed as approximately 6.9 million BTC are estimated to sit in addresses where public keys are already revealed. This includes an estimated 1.1 million BTC believed to belong to BTC creator Satoshi Nakamoto. The probable threat has led to proposals for a quantum-safe address system. BIP-360 is described as a BTC defense created to hand out a quantum-safe address type. It is already live on a test network.

Another proposition is leveraging vulnerable coins that are never moved to safer addresses. Such a proposition could affect long-dormant holdings, including coins associated with Satoshi.

However, the idea has faced opposition from parts of the BTC community, with critics describing the process as authoritarian. These issues add another layer to the AI debate. The question is not only whether future technologies could affect Bitcoin’s cryptography, but also whether the crypto community can cooperate on upgrades swiftly when a security issue arises.

Buterin’s position is that many probable problems can be managed through technical upgrades without needing broad social consensus. Shapiro sees technological developments and falling miner rewards as major risks that could weigh on Bitcoin’s price.

The debate remains a question of future risk rather than an immediate threat to BTC. Shapiro has placed his odds of a larger Bitcoin crash over the next 2 years at 40%, while Buterin has expressed a positive view of Bitcoin’s adaptive nature. The discussion emphasizes the need for cybersecurity, artificial intelligence, and new computing technologies in evaluating cryptocurrency’s long-term prospects.

2h ago
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