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Quantum Computing and Machine Learning

The Blue Water Team

Quantum computing (QC) is the new frontier of computing. Promising previously unimaginable advancements in data processing, data analysis, and machine learning, QC also presents a promising investment opportunity. This article by Defiance Investments looks at QC, what it is, and how it may influence investing in the near future. 

Quantum computing utilizes the behavior of supercooled subatomic particles, such as electrons and photons, to manage large amounts of data at incredible speeds. 

This data is stored in units called qubits (the QC equivalent of bits). Thanks to the use of quantum mechanics, such as the ability of subatomic particles to exist in more than one state at once (superposition) or to influence each other's behavior even when not in contact (entanglement), QC presents a transformative way of understanding and analyzing information.

Some of the major players in QC are currently Google, Microsoft, IBM, and Rigetti. Currently, quantum computing is in its early stages, dependent upon enormous computers. Quantum supremacy, or even quantum advantage (at which point QC becomes significantly more advantageous than traditional computing), is not yet here. When it comes, however, one of the first major applications will be in machine learning. 

Machine learning is the tool that makes artificial intelligence possible. The term refers to the ability of a machine to evaluate patterns and data by creating and using sophisticated algorithms in order to improve the machine's ability to make smart and reliable decisions. 

Quantum computing holds great promise for machine learning because it possesses the ability to increase the speed and accuracy with which machines analyze patterns and data in order to build the algorithms and behavior that drive successful machine learning. 

These benefits have some broad applications across industries, some of which are already in development. Industries that stand to benefit from the synergy of QC and machine learning include the following: 

  • Government
  • Aerospace and Defense
  • Cryptography
  • Financial Services
  • Healthcare
  • Retail
  • Oil and Gas
  • Transportation and Logistics
  • Materials Science

It is possible that by 2030, QC could be the computing method of choice for technologies that support laptops and mobile devices. Morgan Stanley estimates that QC's value could double from its current $5-6 billion a year, while the value of QC hardware could rival that of the supercomputer market, currently valued at $32 billion. 

The potential for the growth of QC is also evident from market confidence in the technology, as demonstrated by significant investments by venture capital investors, the adoption of QC research by giants such as Google and IBM, and the implementation of QC initiatives in Europe and the United States. 

Thanks to these growth catalysts, analysts believe that QC is following Moore's Law, which means that the field should see a steady reduction in costs even as it enjoys a steady increase in performance. Thanks to these trends, QC is a promising investment choice, despite the need for continued development and practical application. 

The Defiance QTUM ETF is fund that invests in this technology.