George Hotz claims no crypto assets are safe after AI breakthrough

Legendary hacker George Hotz has sparked discussions by stating that no crypto assets are truly "safe."

This comment follows the release of OpenAI's new o3 model, which reportedly discovered a polynomial time factoring algorithm.

Such an algorithm could theoretically compromise the security of various cryptographic systems.

However, experts argue that breaking crypto security would require large-scale quantum computing, making such a scenario unlikely.

Hotz shared an Axios article highlighting concerns among computer science majors about being replaced by AI, particularly due to the advanced programming capabilities demonstrated by the o3 model.

While Hotz is known for his early achievements in hacking Apple's iPhones and PlayStation 3, many in the cryptocurrency community have interpreted his statement as a joke.

Blockstream CEO Adam Back responded to Hotz's claims, labeling them as "highly dubious."

He emphasised that the Axios article does not substantiate any assertions regarding the algorithm's implications for cryptography.

Back suggested that Hotz's statement might simply be "a misunderstood joke," reflecting a broader scepticism about sensational headlines related to AI advancements.

This incident underscores the ongoing dialogue surrounding AI's potential impact on various fields, including cybersecurity and software development.

As AI technology continues to evolve, concerns about its implications for job security and industry standards remain prevalent among professionals in tech fields.

The conversation initiated by Hotz serves as a reminder of the complexities involved in understanding both AI capabilities and their potential ramifications on established systems.