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This article focuses on Estonian ID cards, but presumably this affects the symmetric encryption of Bitcoin wallets as well, correct?

If the crypto can be broken for ~1000$, as mentioned, that seems like a serious problem...

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No, it doesn't. This is a vulnerability in a particular implementation of RSA. Bitcoin doesn't use RSA at all, let alone that particular implementation of it.

When that happens, you won't hear about it in the news like this. You'll hear about it when the price of BTC plummets as all wallets are emptied.

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