It's clear that AI right now is a big part of what is driving stocks and other hype type markets there's still other things happening in the background that could in fact beat out AI and it's something we have heard a lot about in the past but seems to have gone quite recently.
That being....
Quantum Computing
What Is Quantum Computing?
In normal computer systems now you have a system that runs in binary code. It's something I learned myself back in my college days and was honestly my favorite class for some odd reason. I just love learning the guts of things and how it all works.
To keep it short the code works on 1 and 0 of which 1 would represent on and 0 would represent off. As an example of this when you press a button on your keyboard it's triggered a set of this code. For the letter L it would be 01001100
A quantum computer doesn't use this. Instead it uses what is known as Qubits. Of which it can be a 1 or 0 at the same time. In simple forms that means you have double the bits.
That's pretty bear bones basic of it without getting into crazy amounts of details on how it all works etc. But just know the system is able to scale much faster then that of a PC.
What Makes Quantum Computing A Big Deal
The way Quantum computers are and how they operate requires unique code compared to a normal computer. However these quantum computers excel at math.
What goes with math that is hyper active with computers at the moment and will be in the future?
Encryption
What that's so important is because of the ability for these computers to pretty much crack anything that is currently thrown at them for regular computers. Government secrets, emails and yes even crypto wallets.
Essentially a quantum computer that was stable and could continue to run for a longer period of time could break any code easily simply by constantly guessing the private key or password for your email.
With recent advancements of increasing the stability of these machines you can start to see why investment and big time investing is happening on faster scale and why if a solid solution is found for these machines it would very well change the entire ecosystem we live in for the digital age.
This is also sparking a few other things at the moment which should be looked at.
Such as a quantum resistant blockchain and the government delaying their CBDC because they want it to be quantum resistant before it launches. That goes to show you how fast and close quantum computer could really be a thing when you start to factor in these other moves happening.
Also just to throw this out there JPMorgan is behind a lot of this including building the blockchain. That's because it's going to be critical for banking systems to be able to run and operate digitally without having to worry about being cracked by a quantum computer.
The race is on now that China has announced it was able to launch a quantum computer and break into keys for private keys and public keys.
So just like we have a current AI race going on we also have a major quantum computer race happening in the background between superpowers of which the USA currently lags behind.
In fact it's very clear that the USA became complacent and got behind in many areas such as AI, Quantum computing, super sonic missiles and the list goes on. This has been a BIG wake up call to the USA and its allies that they in fact are no longer at the top of the food chain and have some rather serious competition at the moment.
Right now we are seeing new lines of communication being made between areas within a country and also for a communications satellite network. What it would mean is that without a quantum computer yourself you simply wouldn't be able to hack the system anymore and thus secure it. This is a powerful tool to have when going to war as it now makes all of your communication on these lines unhackable.
What To Expect
It's expected that a solid Quantum computer will be operational this year. In fact there's already some good cases of this already happening. It will mainly be reactive and happen behind closed doors so what you hear and see might be years old or months old. It's also increasing quickly and a lot of money is now being dumped into it.
The places aka companies that should be at the front of all of this are cyber security stocks. They could be good bets if they are able to protect your systems from quantum computers.
Want to take that a step further and why governments and politics pisses me off... Well look no further than Nancy Pelosi once again. On Feb 12th of this year congress was briefed on serious national threat and soon after she bought a bunch of stock in a company called $PANW or Palo Alto Networks.
Crypto and Quantum
Since this is becoming a big focus we will most likely see cryptocurrency be at the front of it in terms of proofing their systems against quantum computers. In fact there are a few already which I'll list here...
CELL - Cellframe
QRL - Quantum Resistant Ledger
ILC - ILCOIN
AME - AME Chain
NXS - Nexus
MCM - Mochimo
What makes this hot is that EVERY company is going to have to either become resistant to quantum computing and also most likely employ some from of it. It could even be integrated into AI which is currently company optional if they want to do it or not.