Bitcoin quantum computers & Futures conspiracy

[CryptoGirl]

We will soon see someone become the fastest trillionaire in history. Why you ask? Because Quantum Computing can defeat Bitcoin's SHA256 blockchains. http://www.newsweek.com/quantum-computers-kill-bitcoin-cryptocurrency-509053

The reason we place so much trust in Bitcoins is because right now, it would take a typical PC 3.17*1064 years to brute force a wallet. This pretty much translates into never. But quantum computing changes the game. Soon, due to quantum computers, 256bit encryption schemes will become easily crackable.

Enter, the CME Bitcoin futures.

For those who don't know how futures work, it's just a contract to purchase something at an agreed price at an agreed date. Say you own 1 bitcoin. I go to you and say, I'll buy that bitcoin off of you in 1 month for $15K. If you think bitcoins will be priced less than $15k after a month, then you would agree to the contract with me, right? So we make the deal. If bitcoins are worth $10,000 next month, I'm out $5,000 because I still have to pay you $15,000 for the bitcoin. On the other hand, if bitcoins are worth $20,000, you lose $5,000. Because you still have to sell me that bitcoin for $15,000. Fair enough?

Okay, now here's the part that gets tricky. The thing is, YOU don't have to actually have a bitcoin to make this contract with me. So what would that look like? Say you agree to sell me 1 bitcoin in 1 month at $15,000. Let's say the price of bitcoins at that date is $10,000. You just made $5k in profit. Why? Because you just have to go on the web, buy a bitcoin at $10k and sell it to me for $15k. Bam. $5K profit. On the other hand, say the current market price of bitcoins are $20k. Well, now you are out $5,000. You have to go to the web and buy a bitcoin for $20k and sell it to me for $15k. Loss of $5,000. Congratulations. You now know what "shorting the futures market" means. It's simply selling something you don't own in the hopes that prices will be cheaper when you actually have to deliver.

Alright, now we know how futures work. So what's this got to do with the real bitcoin market?

We've all seen the dramatic rise in the value of bitcoin this year. It's astronomical. Why is this happening? There are literally 100 reasons people will give you for why this is happening. And the truth is, all of them are plausible. But here's what I think. I think someone, or some govt, is driving up prices for a specific reason. To short the bitcoin market using futures.

What makes bitcoins secure? What makes your wallet that you have on your harddrive or USB drive secure? SHA256 bit encryption. The specifics of this encryption is beyond the scope of this post but suffice to say that it would take a long ass time to try to bruteforce guess the password. What would happen if that password could be broken in a matter of week? Simple. Every blockchain currency, as well as all passwords you use, will become crackable. Now, most servers, such as your bank's or your business, have a safeguard against this. They only allow something like 5 attempts to be made before they let you try again. But what about bitcoins? Umm,.... nope. You can bruteforce attack bitcoin wallets as much as you'd like simply because bitcoin wallets don't exist on your computer. It exists in the ledger which everyone has access to. You only have the password that allows you access to that particular entry on the ledger that proves that you have such and such amount of bitcoins.

So, if you develop a computer that can crack SHA256 encryption in a matter of weeks, how would you use that to make money? Simple. Short the hell out of bitcoin futures. Then release the news that you have a computer that's able to crack SHA256. Bam. The value of bitcoin goes to ZERO. No, I'm not exaggerating. The value will literally go to zero. You just made more money than anyone in history in the shortest amount of time.

Now, this isn't all speculation. You can prove me wrong by observing the price of the CME futures over time once it starts trading. Selling large amounts of futures will drive the price of the futures down and they will trade below market price (current price). So, even tho 90% of the people think the price of Bitcoins will go up, it could trade at prices lower than the current market price. This will mean that there is a huge seller of this futures. It will prove my point.

However, this is not what's going to happen. The futures price will trade at a significant premium (meaning higher than current market prices). Why? Because they're gonna drive this sucker to the max. They're gonna make it go all the way up to $100k while the Quantum Computer is finalized. Then, they will unleash the greatest trade ever known to man. A trade that makes Soros' shorting of the GBP look like child play.