Key insights
- The author suggests quantum computing, particularly for unbreakable encryption, holds significant long-term profit potential due to high demand from financial institutions and governments. While current revenue is limited, advancements could lead to a 'gold rush' for the first company to achieve commercial viability. The author is cautiously accumulating shares in quantum computing companies, viewing them as potentially resilient during economic downturns.
I’ll make this short and sweet. None of the well known quantum computing companies out there are likely going to find much revenue in the short term. It might be months or years but advancements in the tech is being made all the time.
OK, so what?
Here’s what. When the tech is at a point where it can be used for commercial purposes, which ever company makes that happen first will see unlimited profits. Why? Because one of quantum computing’s most useful strengths is in providing unbreakable encryption solutions. It will be a technology needed by every financial institution and any other entity that requires the highest security possible, like governments. Basically, anything hackers or spies want to infiltrate will all need this service.
I don’t know how it will be marketed, all I know is it will be a novel technology with near infinite demand and constant use all day, every day - like present day encryption.
But unlike current encryption, quantum computing needs novel hardware which very few companies will be able to produce for probably a long time. This hardware won’t be sold to every day consumers for decades, if ever.
I imagine it would probably be something like a cloud computing set up.
There was a spike in quantum computing interest and QBIT, RHTI, QUBT and others last summer and the share price of these companies were all around 4x so despite the price being low again (which is good) there is interest. I know QBTS even now generates some revenue with the limited capabilities they cab offer at this time.
I’m not dumping a ton of money into these stocks yet but they have been holding up pretty well during this shit show of an economy. Im planning on slowly accumulating, being careful to not be holding the bag if one of the companies fails.
I compare it to Ai because Ai is still relatively novel tech, I think. it is certainly far from being perfected and while it is generating some revenue, it is nowhere near providing the ROI needed to justify the insane amount of money being pumped into it. No one out there “needs” Ai.
I know - this is apples/oranges. My point is I think at some point there will be a similar gold rush with quantum computing companies and i believe it will happen rapidly.
Full transparency, i have a minuscule position with QBTS.