Not Bitcoin: US Government Bets $2 Billion On Quantum Instead

The US government is reportedly investing in Quantum Computing, the technology that could end up acting as a possible threat to Bitcoin.

US Commerce Department To Give $2 Billion To Quantum Computing Firms

As reported by CNBC, the US government is set to award grants to nine companies operating in the Quantum Computing sector. The deals, which were first reported by the Wall Street Journal, involve a sum of $2 billion handed to these firms in exchange for equity stakes for the government.

Quantum Computing is an upcoming class of computers that will be based on Quantum Physics principles and is theorized to be strong enough to solve problems too difficult for classical computers of today.

Currently, there are many firms part of the Quantum Computing race, a prominent name among which is IBM. The company is one of the oldest and largest technology companies, and its 1981 IBM Personal Computer was so influential that its architecture still makes the basis of most personal computers today.

These days, IBM is known for its computer research and supercomputers, which rank among the most powerful in the world. With the firm also setting its eyes on Quantum Computing, the US government is reportedly allocating the largest share of the grants to it: about $1 billion.

Another major beneficiary of the deal is GlobalFoundaries, a company known for its cutting-edge semiconductor manufacturing capabilities. WSJ reported a grant value of $375 million for the company. Among the remaining seven firms are D-Wave Quantum, Rigetti Computing, and Infleqtion.

As mentioned before, Quantum Computing may be able to solve problems today’s computers can’t handle. This can include certain cryptographic systems, like blockchain-based cryptocurrencies. As such, the technology is often cited as a threat in the context of Bitcoin.

The US government also announced a Strategic Bitcoin Reserve last year, aiming to use the tokens confiscated by the government to create a treasury reserve for the nation. Work on the reserve stalled a bit, but things seem to have picked back up as Representative Nick Begich has introduced the American Reserve Modernization Act (ARMA) in Congress, which could formally establish the reserve.

Begich noted in an X post:

While the US government may be headed toward a Bitcoin reserve, it’s currently unknown whether it will ever actually buy new tokens. In contrast, the nation is already investing in Quantum Computing, which could potentially end up acting as an adversary to the cryptocurrency.

Capriole Investments founder Charles Edwards commented on the development in an X post. “The US government has never bought Bitcoin, but it is buying quantum stocks,” said Edwards. “Strong message.”

Bitcoin Price

At the time of writing, Bitcoin is floating around $77,700, down 4.6% in the last seven days.