🧠 Technology & AI risk-off · 3–10 years
A what‑if from the future

What if a quantum computer breaks RSA-2048 encryption?

A public RSA-2048 quantum break is a systemic-confidence shock — the first move is a security/crypto-migration panic, but the modeled long-end Treasury selloff plus gold and BTC bid as 'non-sovereign hedges' is a defensible reserve-confidence read. No clean analogue exists; the 1971 Nixon Shock rhyme captures a sudden monetary-trust break. Skeptic's note: post-quantum crypto migration is the real-economy response, and bonds may rally on flight-to-safety rather than sell.

6%
our model probability
over 3–10 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 6% · 90% range 0–14% · 40 analogues · measured class de_dollarization 94% in 10 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — de_dollarization ≈0.2857/yr → 94% in 10 yr94%
Analyst prior · editorial share 2% of the class2%
Pooled · weight 87%6%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)6%
Published6%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 3–10 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A demonstrated quantum factoring of RSA-2048 instantly imperils banking, VPN, and TLS encryption worldwide. The trigger decomposes into signed root‑shocks — Dollar/reserve confidence ▼ · Risk appetite ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Gold XAUon Hyperliquid 📈 chartCommodity▲ +3.2%
hist +0.88–+2.09% · other way -0.17% (n=12)
2MicroStrategy MSTRon Hyperliquid 📈 chartEquity▲ +3.2%
hist +1.12–+2.14% · other way +24.57% (n=12)
3Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.8%
hist -1.0–-0.57% · other way -0.29% (n=12)
4Bitcoin BTCon Hyperliquid 📈 chartCrypto▲ +1.8%
hist -3.55–+2.26% · other way +5.56% (n=12)
5US dollar (DXY) DXYon Hyperliquid 📈 chartFX▼ -1.6%
hist -0.98–-0.58% · other way +0.7% (n=12)
6S&P 500 SPXon Hyperliquid 📈 chartIndex▼ -1.2%
hist -0.5–-0.02% · other way +0.18% (n=12)
7Tech sector XLK 📈 chartEquity▼ -1.3%
hist -0.88–-0.28% · other way -0.38% (n=12)
8EUR/USD EURUSDon Hyperliquid 📈 chartFX▲ +1.4%
hist +0.46–+0.85% · other way -0.53% (n=12)
9Coinbase COINon Hyperliquid 📈 chartEquity▲ +1.2%
hist +0.3–+0.85% · other way +18.8% (n=12)
1030y Treasury yield DGS30 📈 chartRate▲ +11bp
hist +2.09–+9.49% · other way +14.1% (n=12)
11GBP/USD GBPUSDon Hyperliquid 📈 chartFX▲ +1.1%
hist +0.41–+0.7% · other way -0.62% (n=12)
1210y Treasury yield DGS10 📈 chartRate▲ +10bp
hist +2.05–+8.5% · other way +14.7% (n=12)
13Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.9%
hist -0.64–+0.9% · other way +3.18% (n=12)
14USD/JPY USDJPYon Hyperliquid 📈 chartFX▼ -1.0%
hist -0.46–-0.21% · other way +1.6% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small gold hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.3% · 30y Treasury yield +11bp · 10y Treasury yield +10bp · Turkish lira +1.0% · Indian rupee +0.8% · Aussie dollar +0.5%

Why we may diverge from history

Trust the cascade long on CL: history's -1.7% is built on 2025 tariff demand-fear windows, not an encryption-break panic — and the thin 8-window sample is off-channel, so the bullish supply-risk read holds.

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Russia cut from SWIFT + central-bank reserves frozen 2022-02 Louvre Accord 1987-02 Iranian Revolution oil shock 1978-12 Nixon Shock 1971-08 FDR gold confiscation & revaluation 1933-04 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Israel strikes Iran — Operation Rising Lion 2025-06 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 Nikkei 225 record single-day rebound 2024-08 Nikkei 225 worst single-day crash since 1987 2024-08 KOSPI biggest-ever point loss triggers circuit breaker 2024-08 VIX third-highest spike on record 2024-08 Intel's Q2 earnings trigger its worst single-day crash since 1974 2024-08 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 India's Modi loses single-party majority 2024-06 Mexico's Sheinbaum landslide + supermajority scare 2024-06 Wagner Group mutiny against the Kremlin 2023-06 Turkish lira hits record low after Erdogan re-election 2023-05 First Republic Bank seized and sold to JPMorgan 2023-05 Regional-bank panic deepens after Signature seizure 2023-03 India Adani-Hindenburg rout 2023-01 Solana craters toward $8 on FTX/Alameda overhang 2022-12 Offshore yuan hits a record low 2022-11 CoinDesk exposes Alameda's FTT-heavy balance sheet 2022-11 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Three Arrows Capital liquidation order 2022-06 Celsius Network freezes withdrawals 2022-06 Netflix subscriber-loss crash 2022-04 Alibaba upsizes buyback to record $25 billion 2022-03 Meta 2022-02
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
MU MUSHORT-5.0% · 5d -3.0%76%37 0.41✓ matches cascade
CL CLSHORT-2.2% · 5d -0.8%72%36 0.36⚠ differs
SPX SPXLONG+0.3% · 5d -0.5% ↺ fades68%39 0.35⚠ differs
SOL SOLSHORT-8.0% · 5d -6.5%72%36 0.34✓ matches cascade
AMD AMDSHORT-1.8% · 5d -1.5%68%37 0.29✓ matches cascade
INTC INTCSHORT-3.9% · 5d -2.3%66%37 0.29✓ matches cascade
USDJPY USDJPYLONG+0.1% · 5d -0.2% ↺ fades64%36 0.27⚠ differs
QCOM QCOMSHORT-2.7% · 5d -2.6%64%36 0.20✓ matches cascade
XLF XLFLONG+0.5% · 5d -0.1% ↺ fades61%36 0.19⚠ differs
ETH ETHSHORT-7.0% · 5d -5.1%61%36 0.17✓ matches cascade
30y yield DGS30LONG+4bp · 5d +2bp60%38 0.16✓ matches cascade
CNY CNYSHORT-0.4% · 5d -0.2%58%36 0.16⚠ differs
Gold XAULONG+0.3% · 5d -0.1% ↺ fades58%36 0.14✓ matches cascade
KRW KRWLONG+0.3% · 5d +0.2%58%36 0.14✓ matches cascade

Why this probability

Quantum factoring of RSA-2048 not feasible by mid-2026; even 3-10yr horizon makes a real demonstration extremely unlikely. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.