Can Quantum Computers “Crack” Bitcoin?

• Quantum computers: A threat to bitcoin?
• Shhh… Google is listening
• The explosive potential of “timed stocks”

Welcome to our weekly mailbag edition of The Bleeding Edge. All week, you submitted your questions about the biggest trends in technology. Today, I’ll do my best to answer them.

But before we get to today’s issue, I need to remind all readers about a very special event I’m hosting next week.

For the past 10 years, the best technology investments have been reserved for venture capitalists and connected insiders. They have been private investments not accessible to the general public.

That’s not fair. So about five years ago, I embarked on a project to do something about it. And what I discovered was remarkable.

There is a small group of tech stocks that – thanks to a government mandate – have a preset “timer” attached to their share price. Once this “timer” hits zero, the share price can take off hundreds of percent in days or even hours.

I call them “timed stocks.”

That may sound too incredible to believe. But some of my readers recently made 432% in 41 days from one of these “timed stocks.” In fact, you’ll hear from one of them below.

To get all the details for yourself, be sure you tune in to on January 22 at 8 p.m. ET during the Timed Stocks Summit. Reserve your spot here.

Now on to The Bleeding Edge mailbag…

Can a quantum computer “crack” bitcoin?

First up is a question on the implications of quantum supremacy for digital assets…

Hi, Jeff, I’m a subscriber to all your services. I read with interest your predictions for 2020. One of the predictions was that a 256-qubit quantum computer would be accomplished in 2020. Does that pose a threat to the security of bitcoin and other cryptocurrencies?

– B.P.

Thanks for writing in and for being such a dedicated subscriber. I hope you’re enjoying and profiting from the research.

For readers who missed it, late last year, we got word Google had achieved quantum supremacy.

That’s the point at which a quantum computer can outperform the most powerful classical supercomputer on earth.

Google ran tests on its 53-qubit quantum computer. Researchers gave the quantum computer a task that would take the world’s most powerful quantum computer, Summit, 10,000 years to complete.

The quantum computer solved it in 200 seconds…

And in December, I predicted that the world would see its first 256-qubit quantum computer before the end of 2020.

Now, we don’t need to worry too much about the specifics of what a qubit is. Just know that more qubits means that there is exponentially more computing power available.

And the significance of a 256-qubit quantum computer is that it could crack military-grade encryption in seconds. It would be game over. Obviously, this is something the cybersecurity industry needs to address right away.

But as you alluded to, this also has implications for digital assets like bitcoin that are supported by a blockchain.

The bitcoin blockchain was designed to be a decentralized, immutable ledger. In other words, it was designed to be immune to classical hacking attempts.

But could a 256-qubit quantum computer “crack” bitcoin?

The answer is yes. A quantum computer could potentially pose a threat to a blockchain.

There is a lot of nuance, however, in this subject.

For example, proof-of-work blockchain technology is very much at risk of being cracked by quantum computers. However, proof-of-stake blockchain technology is actually more resistant to quantum computers.

And there is one very important thing to remember about blockchain technology. It is software. And like all software, it can be upgraded.

I can tell you that there are private blockchain technology companies right now working on solutions to make blockchains “quantum-resistant” or “quantum-proof.”

There’s even one blockchain project called Quantum Resistant Ledger that has developed its blockchain technology from the ground up to be quantum-resistant.

I can tell you right now that quantum computing will impact our world in a profound way. I’m committed to keeping my readers on the bleeding edge of this trend.

I’m digging in deep on my studies on quantum computing this year. I need to make sure that I stay on top of the bleeding edge of developments in this space.

I’m taking several courses at MIT focused on quantum computing. I’ll even have the opportunity to use a quantum computer myself.

I’ll report back any interesting insights from my training to readers of The Bleeding Edge.

These developments in quantum computing are going to act as a catalyst for innovation in other areas like encryption technology and cybersecurity.

As a result, there are going to be some exciting investment opportunities in this space in 2020.

Am I a “government agency sympathizer”?

Next up, one reader has a comment about Google’s digital assistants and seems suspicious of my motivations…

Jeff Brown, you write about [Google’s digital assistants] and never mention that your supposedly private life can all be in the hands of these companies because these products are listening devices! I question if you are now a government agency sympathizer?

– William M.

Thanks for writing in, William. Even though you seem a bit upset with me, I appreciate you being a reader and taking the time to write in.

I believe what you’re referring to is Wednesday’s edition of The Bleeding Edge. I profiled new advancements with machine learning and natural language processing will make digital assistants even more advanced.

Specifically, Google Assistant will soon sound like a normal human when reading to you. It will even have natural pauses and human cadence. That’s impressive.

The point I was trying to make was that a personal, AI-powered digital assistant will be a near-future event. These AI assistants will be able to do our taxes, make dinner reservations, and even order gifts for family and friends.

William, you’re right that I didn’t mention the downside of using a Google Assistant in that issue. But I have remained consistently up-front about my distaste for how companies like Google and Facebook surveil and sell our data without our knowledge or consent.

Google is designed to do one thing and one thing only. It mines our data by any means necessary and sell it to the higher bidder. We must never forget that. If users care about their privacy, I wouldn’t recommend buying a Google Assistant.

That said, purely from a technology perspective, this is a product that consumers are going to love. And as a company, Google has some of the most advanced artificial intelligence on the planet.

Google’s autonomous car division, Waymo, is rolling out self-driving fleets of cars in American cities as we speak. And, as I mentioned above, Google achieved quantum supremacy late last year.

There’s no denying it, this company does have some impressive technology.

And no, I am not a government agency sympathizer… nor am I a sympathizer with Google and Facebook; I’m just an investment analyst with a strong focus on high technology.

Year after year, I help my subscribers make money and outperform the markets and the best hedge funds investing in the world of high tech.

And my mission with The Bleeding Edge is to give my readers an inside view of the incredible things that are happening in the world of high tech… irrespective of whether we like what’s happening or not.

Either way, it is better for us to be well informed about these developments. And I won’t let my personal opinions of Google stop me from sharing breakthrough developments from the company.

The power of “timed stocks”…

Dear Jeff, Thank you for your excellent and interesting research! Having sold American communication technology products for 36 years, I feel right at home here.

I certainly do appreciate you being there for us small investors. It was a remarkable experience to be in time for over 400% gain on [a timed stock recommendation]. My first big stock percentage gain ever; now I know this will work great.

– Geir S.

Thanks for writing in, Geir. It’s always great to hear from fellow technology enthusiasts. I’m happy to have you aboard.

And I’m very happy to hear you were able to lock in such a great return from my research on these “timed stock” investments. There’s nothing quite like waking up one morning and realizing you quintupled your money in just a few days. We have a lot more to look forward to.

And for readers of The Bleeding Edge, I hope you can join me for my Timed Stocks Summit on January 22 at 8 p.m. ET.

On that date, I’ll reveal precisely what “timed stocks” are, why they accelerate so quickly, and how I designed a trading system to spot them. You can go right here for all the details.

That’s all the time we have this week. If you have a question about the world of high technology, write to me here. I’ll do my best to tackle it next week.

Regards,

Jeff Brown
Editor, The Bleeding Edge

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