G\u2019day, Charlie here. Today\u2019s essay comes from James Altucher, part of our international network. He\u2019s a tech\/crypto guru and former hedge fund manager.<\/p>\n
This piece is a great introduction if you don\u2019t already know James\u2019 work.<\/p>\n
You see, James has been on a prediction tear recently.<\/p>\n
With his hedge fund experience and elite network of US insiders, he\u2019s picked a few big wins in the past year.<\/p>\n
Mind you, practically everything not nailed to the ground has risen since April. Still, today\u2019s article is more about technology than specific stocks.<\/p>\n
I\u2019ll leave James to explain\u2026<\/p>\n
***<\/p>\n
One day very soon, you\u2019ll wake up to headlines that change everything about digital security.<\/p>\n
A quantum computer will have broken a widely used encryption standard in minutes.<\/p>\n
When this \u2018Quantum Breakthrough Moment\u2019 happens, every digital system on the planet suddenly becomes vulnerable.<\/p>\n
While many have been looking elsewhere, the quantum sector has exploded with activity.<\/p>\n
One I particularly like, SEALSQ [NASDAQ:LAES] has surged over 115% just this past month.<\/p>\n
But this is just the beginning.<\/p>\n
That \u2018quantum moment\u2019 is starting to feel a lot closer\u2026<\/p>\n
Why the Threat is Already Here <\/p>\n
Here\u2019s the thing about quantum threats: you don\u2019t need to wait for quantum computers to arrive before the damage begins.<\/p>\n
Foreign governments and hackers are copying encrypted data today, storing it away, and waiting.<\/p>\n
The strategy is called \u2018harvest now, decrypt later.\u2019<\/p>\n
They know they can\u2019t open the encrypted files today.<\/p>\n
They\u2019re storing it until quantum computers become powerful enough to crack it open like a digital safe.<\/p>\n
This means that companies and governments need to start preparing by immediately changing their security to new standards that can withstand quantum computing.<\/p>\n
And time is running out\u2026<\/p>\n
Quantum Computing Pushes Forward <\/p>\n
Every advancement in quantum computing makes the security problem more urgent.<\/p>\n
As quantum computers get more powerful, the \u2018Quantum Breakthrough Moment\u2019 gets closer. <\/p>\n
Companies and governments are slowly waking up to the fact that they need quantum-safe security immediately.<\/p>\n
Big institutions, foreign governments, and major tech companies are piling in.<\/p>\n
Banking giants like HSBC completed their first quantum-powered bond trade. Asset manager Vanguard ran portfolio optimization using quantum computing.<\/p>\n
Pharma giant Novo Nordisk announced it was investing \u20ac188 million into a dedicated quantum venture fund.<\/p>\n
While most companies are not yet focused on quantum security, it\u2019s very likely that in the coming months they\u2019ll begin to look into this more closely.<\/p>\n
The \u2018harvest now, decrypt later\u2019 strategy means that companies can\u2019t wait for the crisis to hit before protecting themselves.<\/p>\n
If we think about the scale of the threat, then the market for quantum-safe security is enormous.<\/p>\n
Every connected device on the planet will eventually need protection against quantum threats.<\/p>\n
That includes every smartphone, every computer, every server, etc.<\/p>\n
The U.S. government alone has allocated US$7.1 billion to upgrade federal systems, but this represents just a fraction of the global opportunity.<\/p>\n
From that perspective, we\u2019re still in the early stages of the quantum computing industry\u2019s development.<\/p>\n
As quantum computing progresses and achieves scientific breakthroughs, the urgency surrounding quantum safety will intensify.<\/p>\n
We\u2019re already seeing this trend play out and expect it will gain momentum in the coming months.<\/p>\n
Investors properly positioned with the right investments could continue riding this wave as demand for quantum security explodes and touches every electronic device on earth.<\/p>\n
***<\/p>\n
Note from Charlie <\/p>\n
Here at Fat Tail, we try to find you ideas that are out on the edge of the financial world.<\/p>\n
In the US, they\u2019re seeing big potential in quantum. While in Australia we\u2019re seeing it in nimble disruptors equipped with the latest AI.<\/p>\n
Be sure to keep an eye out next week for my colleague Lachlann Tierney\u2019s latest report on a complete ASX unknown.<\/p>\n
He thinks this stealth small cap it has the potential to become the next Afterpay lurking on the ASX. <\/p>\n
With AI in the hands of smaller, more agile companies the potential for disruption is greater than it\u2019s been for years.<\/p>\n
Keep an ear to the ground.<\/p>\n","protected":false},"excerpt":{"rendered":"G\u2019day, Charlie here. Today\u2019s essay comes from James Altucher, part of our international network. He\u2019s a tech\/crypto guru…\n","protected":false},"author":2,"featured_media":223610,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[64,63,257,105],"class_list":["post-223609","post","type-post","status-publish","format-standard","has-post-thumbnail","category-computing","tag-au","tag-australia","tag-computing","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/223609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=223609"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/223609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/223610"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=223609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=223609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=223609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}