Will Quantum Computing Threaten Blockchain?

• Making the blockchain “quantum-proof”
• Exercise-free weight loss could soon be possible
• A $74,300 profit before breakfast

Dear Reader,

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.

This week was particularly busy for reader feedback. I love seeing that readers are so engaged with our ideas. Of course, I’m unable to answer every single question that comes in. But rest assured, I’m reading all your messages.

So keep writing to me with your questions. You can send me a message by clicking here.

Now let’s get to our mailbag.

Is quantum computing the end of blockchain?

First up, a reader has a question about quantum computing and what it means for the world of blockchain technology…

Jeff, Thanks for the great news about the quantum computer. Just wondering where that leaves cryptos if anything encrypted can now be potentially “broken into” so easily!

– Cassandra A.

Thanks for writing in, Cassandra. It’s a great question. I recently shared some more insights on quantum computing from my recent conference at MIT. Catch up on that right here.

To get new readers up to speed, in September, I told subscribers that the age of quantum supremacy had arrived. 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 supercomputer, Summit, 10,000 years to complete.

The quantum computer solved it in 200 seconds…

We will remember this moment in history as the point where “it” happened. Quantum supremacy will change everything.

For starters, we need to rethink everything we think we know about cybersecurity.

For several decades, 256-bit encryption was considered “military-grade.” We don’t have to worry too much about the technical details. Just know that this type of encryption was considered the gold standard.

Now, to be clear, a 53-qubit quantum computer – like the one Google has – can crack 256-bit encryption. It will take some time – perhaps a few days – but it can get it done.

But guess what happens once there is a 256-qubit quantum computer? It can crack 256-bit encryption in seconds. Game over.

And now that Google has a functioning quantum computer, it’s not a big leap to get from 53 qubits to 256 qubits. We will have a massive problem on our hands very soon. I can tell you that the cybersecurity industry is scrambling right now to counter this.

And I can also tell you that the National Institute for Standards and Technology, a division of the U.S. Department of Commerce, is already working on the next generation of encryption technology… something that will be quantum-resistant.

And that’s not the only division of the government that’s already trying to tackle this problem.

And to your question, Cassandra, yes, quantum computers also pose a threat to “cracking” a blockchain. Longtime readers already know that blockchain is the distributed ledger technology that underpins digital assets like bitcoin and ether.

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.

There is one very important thing to remember about blockchain technology. It is just 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-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.

The reality is there’s not a moment to lose. Whether you’re a government or private company, if you have important data or systems that must be protected, it’s critical to be thinking about and developing systems that are resistant to quantum computing threats.

The age of quantum supremacy has arrived. Everything will change from here.

As a final note, I talked in-depth about quantum computing when I was a guest on Glenn Beck’s podcast last month. Glenn is one of the few people who understands the implications of quantum computing. It was a real pleasure speaking with him. You can catch the full interview right here.

The “cure” for obesity…

Next up is a great question about the world of biotech…

Jeff, I’m an Early Stage Trader subscriber, and I love the world of biotech and your research! One of the “diseases” that affects more Americans than just about any other is obesity. If somebody were to “cure” the problem of obesity, I believe it could be one of the most profitable investments ever because of how widespread it is. Have you seen any technology leading to this cure in your research?

– Todd J.

Thanks for writing in, Todd. And thanks for being a subscriber to Early Stage Trader. Be sure you look for our weekly update. It will be published later this afternoon.

To your question, you’re correct that obesity is a widespread problem around the world. As recently as 2018, it was estimated that 31% of American adults were obese. And the statistics are worse in some other countries. In fact, obesity is a growing problem in low- and middle-income countries.

And believe it or not, there is a technology that could “cure” this condition. I’m talking about CRISPR genetic editing technology.

CRISPR is one of the subjects we cover regularly here in The Bleeding Edge. We can think of it as a technology that can “edit” our DNA as if it were software code.

I’m on record saying that CRISPR has the potential to cure 6,000-plus diseases of genetic origin (for more insights on CRISPR from my recent visit to STAT conference, go here).

But research also indicates that CRISPR has the potential to reduce body weight. That’s right… I’m talking about exercise-free weight loss.

A team at the Institute for Bioengineering and Biopharmaceutical Research at Hanyang University in Seoul used CRISPR to target a particular tissue in mice with Type 2 diabetes.

Type 2 diabetes is primarily the result of unnecessarily high caloric intake and lack of exercise. It accounts for 90% of all cases of diabetes.

The scientists injected the mice with a CRISPR-based therapy. And get this… On average, the mice lost about 20% of their body weight and experienced reduced inflammation.

The fact that CRISPR reduced inflammation and body weight has big implications. An unhealthy diet and lack of exercise cause inflammation. Reducing body weight without reducing inflammation would be far less beneficial. So this means that CRISPR could one day be used as a weight-loss solution.

Think about it… How many people would line up at their doctor’s office to receive a shot that helps them lose weight?

I would like to say, however, that a treatment like this is not a replacement for regular exercise and a healthy diet. A treatment like this will be helpful for those that have severe diabetes and need help to get back to the point where they can exercise and live a healthy life.

The reality is that the body stores excess calories beyond what the body needs as fat. Regular exercise increases our metabolism and helps bring a healthy balance to our bodies, along with a healthy diet. A perfect balance is to consume exactly the number of calories that we require on a daily basis.

Your instinct is correct, Todd. A company that developed a CRISPR-based therapy for human weight loss would be worth billions overnight. If I find an investment opportunity around this, my readers will be the first to know.

But investors don’t have to wait for a company to develop a therapy for weight loss in order to profit from CRISPR. One of my favorite CRISPR companies is about to begin human trials to cure a rare form of blindness caused by a genetic condition.

That’s right. One company is working hard to cure blindness. And I have good reason to believe these trials will be successful. We can imagine that this story will be plastered across headlines once the news breaks.

The share price of this company could spike overnight. If you’d like the details for yourself, go here.

Another “hall of fame” trade…

This week, subscribers to my trading service – Early Stage Trader – locked in a great return on one of our trades. In late October, we established a position in Synthorx (THOR). On Monday, we sold for a 432% return.

Let’s conclude with some of the best pieces of feedback I received…

Jeff, I was already enjoying the “on paper” gains of the Early Stage Trader service before today’s big announcement and subsequent sale of the THOR position.

I was in the position for only 39 days. I chose early on to devote $6k to each and every position you suggested. So today’s action netted me $25,767. The timing couldn’t be any better, as I’ve been looking for a way to pay for some medical treatment not covered by insurance for my wife that will be right around $30k. I don’t know to adequately express my gratitude.

– Eric H.

Jeff, I stumbled upon the THOR profit while scrolling through my portfolio early this morning and first thought it might be a mistake. But then found the news and realized the great profit was real! I sold it immediately for “$25,000 birds in the hand.”

– David B.

This was the most thrilling trade I ever made in over 40 years of investing! Thanks for recommending THOR!

– Claudia H.

I bought Synthorx (THOR) at $15.38 after you raised the buy-up-to price, and I have just asked my broker to sell on your recommendation at around $67.00. Needless to say, I am thrilled with the amazing profit on this trade and can’t thank you enough for making this possible for my family and me.

– Bert K.

Jeff, Thank you for the GREAT call on THOR! I sold my positions in the pre-market action this morning. That banked me a profit of $74,300 before breakfast!

– Don B.

Thanks to all the readers who wrote in with their personal stories about this trade. My team and I expend a lot of time and resources to publish the research you read. But when I see feedback like this, it makes it all worth it.

And if you’re a subscriber who wasn’t able to establish a position in THOR, don’t worry. This might have been our first successful closed trade in Early Stage Trader, but it certainly won’t be our last. We have a lot to look forward to in 2020. I’ll give subscribers all the details in our weekly update due out later today.

And if you’re not a subscriber to Early Stage Trader, I encourage you to join us so you can take part in our next batch of trades. Go right here.

That’s all the time we have this week. If you have a question you’d like me to answer in our next mailbag edition, write to me here. I’ll do my best to get to it.

Regards,

Jeff Brown
Editor, The Bleeding Edge

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