Why bitcoin’s bust and the ‘crypto cult’ threaten all investors – MarketWatch

Traders who have been coordinating on social media to promote stratospheric prices in meme stocks, such as GameStop GME, +3.70%, and cryptocurrencies such as bitcoin BTCUSD, -3.51% and dogecoin DOGEUSD, -2.18% what exactly are they doing?

They are not day trading, but holding on for dear life, (HODL) as the group describes it. They are not indexing, because they view the entire stock market as corrupt. They are certainly not quality investors, as their process defies financial analysis.

While indexers, day traders, and stock pickers each have a distinctive approach, all are conscious and diligent participants in a traditional market. The same is even true of shareholder activists, who may demand changes, from board composition to dividend policy, but accept the corporate setting and related measures of returns. Others use their position as shareholders to advocate social causes, from consumer protection to workforce diversity, but purpose is clearly stated and proposals formally made, often in a target companys proxy statement.

Most of todays devotees of meme stocks and crypto operate outside any such familiar forms of market behavior or investing theory. Rather, they protest against Wall Street capitalism, revel in disruptive poisoningof markets, or rejoice at creating the fantasy of an alternate reality.

The behavior of most of these participants can best be explained by a nascent branch of economics called identity economics. Pioneered in a 2010 book of the same name by George Akerlof and Rachel Kranton, the books focus is on behaviors at odds with traditional economic models of rationality, such as why people vote against their economic interests or why they stay in jobs making less than they could elsewhere.

Identity economics attributes such choices to our conception of who we are and other social considerations. People value working with certain colleagues in a particular organization when they share distinctive norms and goals. When employees feel they have a shared mission, their sense of culture compensates for a lighter paycheck. Thats one reason HR departments invest in artifacts of corporate culture, from mission statements to mantras.

Meme-crypto trading culture is like that. Just as employees who think of themselves as insiders work for less, members of this cohort stake their capital on the riskiest possible bets with scant regard for corresponding returns. Participants share a code and language: they HODL or are going to reach the moon.

Devotees of dogecoin call themselvessubshibers, referring to the breed of their Shiba Inu mascot. And just as corporate culture and employee identification can be decisive to a businesss success, that sense of in-group identity is essential to dogecoins sustenance.

The cyrpto cult is a new force all investors must consider. For indexers, their presence injects volatility into the ever-fluctuating market, a jolt greater than ordinary company risks that indexing diversifies away. Short-sellers, focused on shorter-term market pricing, face significant additional risks, as the GameStop price spike earlier this year revealed.

Even quality investors, who care more about business value than market price, face headwinds from the persistent mispricing of risk. After all, identity economics can influence pricing and investment returns anywhere, without regard to underlying business features or competitive advantages. The strongest business moats brand strength, economies of scale, network effects may ward off rivals, upstarts, and disruptions. But not identity economics.

Traditional investors of every stripe will benefit from learning about this cohort to assess risk. Such cults throughout history eventually unravel, as some members defect, others follow, and the culture collapses on itself. Using markets to protest markets may prove to be fiendishly dangerous.

Lawrence A.Cunninghamis a professor at George Washington University, founder of theQuality Shareholders Group, and publisher, since 1997, ofThe Essays of Warren Buffett: Lessons for Corporate America. To get updates on research about quality shareholders,sign up here.

Read: No one will save you from a bear market, so youll have to do it yourself

More: Bitcoins 40% crash does feel like capitulation, says crypto specialist, but heres where the next crucial support level stands

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Why bitcoin's bust and the 'crypto cult' threaten all investors - MarketWatch

‘Bitcoin is melting.’ Here’s what a 30% drop from highs in the crypto may say about stock-market risk sentiment – MarketWatch

What does a weekend meltdown in bitcoin prices portend for U.S. stocks?

Bitcoin BTCUSD, -3.51% is supposed to be an asset uncorrelated with equity markets, or any other traditional asset for the matter, but some analysts have said the cryptocurrency has traded in closer step with parts of the market amid the recent turbulence in equities as investors attempt to assess the most effective strategies for playing an economy recovering from the worst pandemic in more than a century.

In a blog post on Sunday, Mott CapitalsMichael Kramer said bitcoins recent breakdown could signal risk appetite on Wall Street is in transition presumably in a bearish direction.

Bitcoin is telling us the risk sentiment of the market overall is shifting, and we care about bitcoin because we care about risk sentiment, Kramer wrote.

Bitcoin prices are down 28% from a peak at $64,829.14 in mid-April, and Sundays trade was choppy for the worlds most prominent crypto after a tweet from digital-asset bull and Tesla Inc. TSLA, -1.01% CEO Elon Musk was interpreted as a threat to unload the $1.5 billion investment in bitcoin that the electric-vehicle company announced back in February. Musk attempted to clarify the exchange later, saying Tesla still retains its bitcoin cache.

Check out: Rather than Will cryptos drop to zero? investors should be asking this question instead, says strategist

Bullish sentiment has been a recent feature of markets even amid last weeks bout of volatility andcould be downshifting, said Kramer. The analyst says small-capitalization stocks, like those in the Russell 2000 index RUT, +0.34%, may be one aspect of the market moving the most closely in line with bitcoin.

The Russell 2000 closed Friday notching its largest weekly percentage decline since March 26, off 2.1%. It was a bruising week for stocks, generally, even if equities enjoyed a solid rally to end the five-day trading period that had been marked by unease about inflation in the middle of the week. The Dow Jones Industrial Average DJIA, +0.36%, S&P 500 SPX, -0.08% and the technology-laden Nasdaq Composite Index COMP, -0.48% all logged their steepest weekly losses since Feb. 26 and the Nasdaq also booked its lengthiest weekly losing streak, four straight, since Aug. 23, 2019.

Read: Jammed and distorted: investors are wrestling with inflation that may test the Feds framework

Kramer said bitcoin is melting, and added that it is possible that the asset may have further room to fall.

A few technical analysts see bitcoin potentially hitting $42,000. Katie Stockton, market technician and founder of Fairlead Strategies, said support sits below the weekends nadir just above $43,800.

So what does that all mean for stocks? Its hard to say.

Futures for the Dow YM00, +0.16%, S&P 500 index ES00, +0.14% and the Nasdaq-100 NQ00, +0.07% were all trading modestly lower Sunday night.

Some analysts see stocks headed higher to end 2021, bitcoin moves notwithstanding.

Tom Lee, founder of Fundstrat Global Advisors, is forecasting the S&P 500 to rise another 7% to 8% from current levels and he is maintaining his target for the broad-market benchmark at 4,400.

Lee said markets attempt to crash last week failed, and he saw parallels between last years slump and this current period, which he blamed, at least partly, on readjustments tied to taxes, the deadlines for which were extended to May 17.

In other words, the market could not muster enough panic to push further downside, wrote Lee.

Instead, we saw a strong rally in the second half of the week. We believe this rally will carry over into this week. In fact, we think that stocks are still on track to make new highs before June 30th, he forecast.

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'Bitcoin is melting.' Here's what a 30% drop from highs in the crypto may say about stock-market risk sentiment - MarketWatch

As bitcoin lurches, Wall Street plots its way into cryptoland – The Economist

To work out the fate of crypto-investing, watch what the banks do next

May 20th 2021

CRYPTO BUFFS have had a punishing week. On May 13th Tether, which issues a stablecoin widely used to facilitate bitcoin trading, said that just 2.9% of its $58bn-worth of coins is backed by cash reserves, feeding doubts about its dollar peg. Elon Musk, Teslas boss, tweeted that the electric-car maker would not after all accept payments in bitcoin. Then on May 18th China warned financial firms against servicing cryptocurrencies. The price of bitcoin tumbled to $30,000, less than half its record high in April, before stabilising at around $39,000.

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As it cratered, bitcoin dragged most other cryptocurrencies with it. Several big crypto exchanges, including Coinbase, experienced lengthy outages. Investors unable to liquidate positions felt trapped; those willing to buy the dip felt cheated. The latest swing might raise doubts about whether crypto markets are liquid or even reliable enough to welcome institutional investors en masse. That is why it is worth looking to Wall Street.

Americas big banks have been venturing into cryptoland. In March Morgan Stanley became the first to offer wealthy customers access to bitcoin funds. This month Goldman Sachs revived the crypto desk it had mothballed in 2017; Citigroup said it may offer crypto services. BNY Mellon and State Street are vying to administer bitcoin exchange-traded funds, currently under regulatory review in America. JPMorgan Chase, once adamant that it would steer clear unless cryptocurrencies began to be regulated, has hinted that it might start trading operations if the market expands.

Why are highly regulated banks wandering into the unregulated wilderness of crypto? It helps that watchdogs in America have been setting out what services banks can provide. Last year the Office of the Comptroller of the Currency said they could offer custodial services for crypto assets. The Commodity Futures Trading Commission regards bitcoin and other digital currencies as commodities, enabling banks to trade derivatives linked to them.

The main reason for banks enthusiasm, though, is obsessive interest from some customers. A year ago Itay Tuchman, Citigroups foreign-exchange chief, hardly ever fielded calls on crypto from institutional clients. Now he receives them several times a week, he says. Roman Regelman of BNY Mellon deems the craze an opportunity, but also an imperative. Wealthy clients are pulling money out of private banks, and retail punters out of current accounts, to bet on digital currencies through fintech firms and startups. Many would rather do everything with their banks, which, in turn, hope to reap the rewards in customer fees and data.

Perhaps the easiest service to offer is derivatives trading, as Goldman now does, providing clients with exposure to the assets without having to buy them. Then comes custody: the storage, and related book-keeping, of assets on behalf of big investors. This requires investing in technology; the few banks already selling custody subcontract tasks to specialist firms.

But it is the next level of services, where banks hold digital assets on their balance-sheets, either as collateral or by trading in spot markets, that is currently beyond reach. After a day like May 19th, when bitcoin lost nearly a third of its value in a few hours, regulators may ensure it stays that way. Even if banks do not trade directly, says Chris Zuehlke of Cumberland, a Chicago-based firm that helped Goldman execute its first big block trade of crypto futures on May 6th, they could still connect clients to large spot traders, acting as the shopfront but relying on the infrastructure, and balance-sheets, of others.

Banks insist that most clients expect a rollercoaster ride. But a prolonged rout could still scare off prospective converts and trigger a regulatory crackdown. Wall Street has an unrivalled ability to bring liquidity and distribution muscle to new assets. Anyone wanting to work out the fate of crypto-investing might do well to see what the banks do next.

A version of this article was published online on May 19th, 2021

This article appeared in the Finance & economics section of the print edition under the headline "Bit by bit"

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As bitcoin lurches, Wall Street plots its way into cryptoland - The Economist

Whatever bitcoin is, it isnt acting like money – Mint

Anyone who still thinks Bitcoin is a viable form of money should have learned otherwise this week. The cryptocurrencys wild fluctuationssayit isnt. For those just looking to get rich quick, the message is even simpler: Buyer beware.

At one point on Wednesday, the price of a Bitcoin had dropped more than 40% over the course of a week disconcerting for the throngs of retail investors who, egged on by Elon Musk and other celebrities, had helped drive it up more than 230% over the previous six months. In a matter of days, hundreds of billions in virtual wealth disappeared.

Thats right: Bitcoin is volatile. In other words, it isnt on track to displace traditionalgovernment-issued currencies. If a Bitcoin buys one Tesla today and only half a Tesla tomorrow, its useless as a means of payment and store of value (unless youre a criminal with limited options). And this is before you consider the inefficiencies and environmental impact of a system that requires power-hungry computers around the world to vouch for each transaction.

Cryptos lack of actual utility wont stop many from profiting handsomely. Its novelty and detachment from any sense of fundamental value make it appealing to the very intermediaries it was designed to disrupt. Traders and hedge-fund managers thrive on the volatility; banks can offer custody services; creators of exchange-traded funds are eager to offer Bitcoin versions. Investors briefly valued crypto exchange Coinbase at more than $100 billion, thanks to the fees it charges customers wanting a piece of the action.

Cryptocurrencies gyrations will most likely create and destroy many more fortunes yet. Authorities should pursue the criminals, caution the unsophisticated, and ensure that speculative fervor doesnt threaten the broader financial system. Beyond that, look out. Your crypto is worth only what the next buyer will pay and that could be an awful lot less than you hope.

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Whatever bitcoin is, it isnt acting like money - Mint

There Is No Equivalence in How Hamas and Israel Wage War – The National Interest

Israel is one of Americas staunchest allies, a beacon for democracy struggling to do right while surviving in a tough neighborhood. Hamas is a U.S.-designated terror organization, a thuggish kleptocracy whose only language is violence. But follow the conversation unfolding in the halls of Congress, on the pages of the worlds most respected media outlets, and among the innumerable hot takes on Twitter, and one could be forgiven for believing its the other way around.

Take, for instance, the stark difference in how the two actors wage war.

When Israel launches airstrikes in Gaza, it is to neutralize militants, weapons caches, and rocket launchers. The Israel Defense Forces take the extraordinary and unprecedented step to send text messages, make phone calls, and drop leaflets to warn civilians to evacuate, compromising the element of surprise in order to minimize casualties. Tragically, some civilian casualties are inevitable. And when there are operational mistakes, rigorous and transparent investigations seek to address the root cause. As an American who served as a combat soldier and commander in the IDF, I can attest to the importance the military places on its code of ethics and international law.

Conversely, when Hamas fires rockets indiscriminately at cities across Israel, every single projectile is intended to murder and terrorize Jews. When Hamas releases booby-trapped party balloons across the border into adjacent towns, they are meant to maim and kill curious Jewish children. And when Hamas operates out of hospitals, schools, and mosques, it is committing a war crime. Yet Hamas knows it scores a tactical victory if Israel hesitates to retaliate, and a public relations victory if Israel does not.

Rare is a dichotomy in warfare so clear. Yet these days, truth is under siege. New voices in Congress now accuse Israel of murdering Palestinian children. Israel is the terrorist, if you are to believe Congresswoman Ilhan Omar and her boosters on Twitter. And in a New York Times story published last week, one of the papers Middle East correspondents even credited Hamas with ingenuity for its ability to manufacture rockets.

What about how Jews and Palestinians respectively treat members of the other ethnic group?

There are nearly two million Palestinian citizens of Israel with full civil rights and one of the regions highest standards of living. At about 20 percent of the countrys population, they serve as ministers in government, justices on the supreme court, anchors on television, and are present in just about every other facet of Israels pluralistic society.

(A narrative emerged in recent weeks that Israel was unlawfully trying to evict several Palestinian families from the Sheikh Jarrah neighborhood in Jerusalem to pave way for Jews. But as legal scholars Avi Bell and Eugene Kontorovich have compellingly demonstrated, the discrimination in this affair actually runs in the opposite direction.)

Hamas, meanwhile, is a genocidal, anti-Semitic, homophobic organization whose founding charter calls for the elimination of the Jewish people. A Hamas leader recently called upon Palestinians to buy knives and cut off the heads of Jews. Things arent much better under the Palestinian Authority (PA), where the sale of land to Jews is punishable by death. PA President Mahmoud Abbas has gone on record saying he does not want a single Israeli living in a future Palestinian state. State media and textbooks notoriously espouse anti-Jewish stereotypes.

Read the news or open your newsfeed these days, though, and guess which side is painted as the ethnic cleanser? Israel. Chelsea Manning and Susan Sarandon, who together have well over a million followers on social media, took to Twitter to denounce Israels ethnic cleansing. The Daily Beast, MSNBC, and Washington Post elevate voices that do the same. Extending the nonsense, the BuzzFeed books editor, an MSNBC columnist, and politicians across the West actually accuse Israel of genocide. Not only are these accusations completely unmoored from reality, they are also in fact the opposite of what is true.

How could this be? How can such a backward narrative be elbowing its way into the mainstream?

Its hard to miss the parallels with the emergent woke ideology, which correlates power with evil and powerlessness with virtue no matter how inappropriate the fit. Israel is powerful relative to the Palestinians. That's all you need to know. Every other detail of this conflict is then rammed through this false paradigm until terrorism is justified, self-defense is excoriated, anti-Semitism is excused, and propaganda becomes fact. Israeli Jews become the white colonizers and Palestinian Muslims the brown colonized. Nevermind that Jews are indigenous to the Land of Israel; Israel emerged as a consequence of decolonization; the goal of Zionism has always been self-determination rather than economic exploitation; and the majority of Israeli Jews are actually brown, having escaped persecution at the hands of Muslim states.

Of course, as with any conflict, there is always room for a more nuanced discourse. Israel is far from perfect, and one must not paint all Palestinians with the same brush. But at a time when the public square is being polluted with lies, this moment calls for moral clarity, not equivocation.

Zach Schapira is executive director of the J'accuse Coalition for Justice. He previously served as a deputy platoon commander in Israel's Special Air Forces. Twitter: @zachschapira.

Image:Cars go up in flames after a rocket launched from the Gaza Strip landed nearby, in Ashkelon, southern Israel May 11, 2021. Reuters/Nir Elias.

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There Is No Equivalence in How Hamas and Israel Wage War - The National Interest

Google wants to build a useful quantum computer by 2029 – The Verge

Google is aiming to build a useful, error-corrected quantum computer by the end of the decade, the company explained in a blog post. The search giant hopes the technology will help solve a range of big problems like feeding the world and climate change to developing better medicines. To develop the technology, Google has unveiled a new Quantum AI campus in Santa Barbara containing a quantum data center, hardware research labs, and quantum processor chip fabrication facilities. It will spend billions developing the technology over the next decade, The Wall Street Journal reports.

The target announced at Google I/O on Tuesday comes a year and a half after Google said it had achieved quantum supremacy, a milestone where a quantum computer has performed a calculation that would be impossible on a traditional classical computer. Google says its quantum computer was able to perform a calculation in 200 seconds that would have taken 10,000 years or more on a traditional supercomputer. But competitors racing to build quantum computers of their own cast doubt on Googles claimed progress. Rather than taking 10,000 years, IBM argued at the time that a traditional supercomputer could actually perform the task in 2.5 days or less.

This extra processing power could be useful to simulate molecules, and hence nature, accurately, Google says. This might help us design better batteries, creating more carbon-efficient fertilizer, or develop more targeted medicines, because a quantum computer could run simulations before a company invests in building real-world prototypes. Google also expects quantum computing to have big benefits for AI development.

Despite claiming to have hit the quantum supremacy milestone, Google says it has a long way to go before such computers are useful. While current quantum computers are made up of less than 100 qubits, Google is targeting machine built with 1,000,000. Getting there is a multistage process. Google says it first needs to cut down on the errors qubits make, before it can think about building 1,000 physical qubits together into a single logical qubit. This will lay the groundwork for the quantum transistor, a building block of future quantum computers.

Despite the challenges ahead, Google is optimistic about its chances. We are at this inflection point, the scientist in charge of Googles Quantum AI program, Hartmut Neven, told the Wall Street Journal, We now have the important components in hand that make us confident. We know how to execute the road map. Googles eventually plans to offer quantum computing services over the cloud.

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Google wants to build a useful quantum computer by 2029 - The Verge

Quantum Computing: The Chronicle of its Origin and Beyond – Analytics Insight

The spark about quantum computing is considered to have set out from a three-day discussion at the MIT Conference Center out of Boston, in 1981. The meeting, The Physics of Computation, was collaboratively sponsored by IBM and MITs Laboratory of computer science. The discussion aimed to formulate new processes for efficient ways of computing and bring the area of study into the mainstream. Quantum computing was not a popularly discussed field of science till then. The historic conference was presided over by many talented brains including Richard Feynman, Paul Benioff, Edward Fredkin, Leonid Levin, Freeman Dyson, and Arthur Burks, who were computer scientists and physicists.

Richard Feynman was a renowned theoretical physicist who received a Nobel Prize in Physics, in 1965 with other two physicists, for his contributions towards the development of quantum electrodynamics. The conference was a seminal moment in the development of quantum computing and Richard Feynman announced that to simulate quantum computation, there is a need for quantum computers. Later, he went on to publish a paper in 1982, titled Simulating Physics with Computers.The area of study soon got attention from computer scientists and physicists. Hence, the work on quantum computing began.

Before this, in 1980, Paul Benioff had described a first quantum mechanical model of a computer in one of his papers, which had already acted as a foundation for the study. After Feynmans statement in the conference, Paul Benioff went on to develop his model of quantum mechanical Turing machine.

However, almost a decade later, came Shors algorithm, developed by Peter Shor, which is considered a milestone in the history of quantum computing. This algorithm allowed quantum computers to factor large integers at a higher speed and could also break numerous cryptosystems. The discovery garnered a lot of interest in the study of quantum computing as it replaced the years taken by the classic, traditional computing algorithms to perform factoring by just some hours. Later, in 1996, Lov Grover invented the quantum database search algorithm, which exhibited a quadratic speedup that could solve any problem that had to be solved by random brute-force search and could also be applied to a wider base of problems.

The year 1998 witnessed the first experimental demonstration of a quantum algorithm that worked on a 2-qubit NMR quantum computer. Later in the year, a working 3-qubit NMR computer was developed and Grovers algorithm got executed for the first time in an NMR quantum computer. Several experimental progress took place between 1999 and 2009.

In 2009, the first universal programmable quantum computer was unveiled by a team at the National Institute of Standards and Technology, Colorado. The computer was capable of processing 2 quantum bits.

After almost a decade, IBM unveiled the first commercially usable integrated quantum computing system, and later in the year, IBM added 4 more quantum computing systems, along with a newly developed 53-qubit quantum computer. Google also gave a huge contribution to the field in late 2019, when a paper published by the Google research team claimed to have reached quantum supremacy. The 54-qubit Sycamore processor, made of tiny qubits and superconducting materials is claimed to have sampled a computation in just 200 seconds. Last year, IonQ launched its trapped ion quantum computers and made them commercially available through the cloud. There have been several experiments and research that are being carried on today. Each day becomes a new step for quantum computing technology since its proclamation back in the 80s.

According to a report by Fast Company, IBM plans to complete the 127-qubit IBM Quantum Eagle this year and expects to develop a 1000-qubit computing machine called the IBM Quantum Condor by 2023. IBM has been keeping up in the path of developing the best quantum computing solutions since it hosted the conference in 1981. Charlie Bennet, a renowned physicist who was part of the conference as IBMs research contingent, has a huge contribution to these innovations put forward by the company.

The emerging era of quantum computing will invite many breakthroughs. The quantum computing revolution will increase processing efficiency and solve intrinsic quantum problems. Quantum computer works with quantum bits or qubits that can be in the superposition of states that will cater to massive calculations at an extremely faster pace.

Quantum computing will have a greater impact on almost all industries and business operations. It is capable of molecular modeling, cryptography, weather forecasting, drug discovery, and more. Quantum computing is also said to be a significant component of artificial intelligence, which is fuelling several businesses and real-life functions today. We might soon reach the state of quantum supremacy and businesses need to become quantum-ready by then.

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Quantum Computing: The Chronicle of its Origin and Beyond - Analytics Insight

27 Milestones In The History Of Quantum Computing – Forbes

circa 1931: German-born physicist Albert Einstein (1879 - 1955) standing beside a blackboard with ... [+] chalk-marked mathematical calculations written across it. (Photo by Hulton Archive/Getty Images)

40 years ago, Nobel Prize-winner Richard Feynman argued that nature isn't classical, dammit, and if you want to make a simulation of nature, you'd better make it quantum mechanical. This was later perceived as a rallying cry for developing a quantum computer, leading to todays rapid progress in the search for quantum supremacy. Heres a very short history of the evolution of quantum computing.

1905Albert Einstein explains the photoelectric effectshining light on certain materials can function to release electrons from the materialand suggests that light itself consists of individual quantum particles or photons.

1924The term quantum mechanics is first used in a paper by Max Born

1925Werner Heisenberg, Max Born, and Pascual Jordan formulate matrix mechanics, the first conceptually autonomous and logically consistent formulation of quantum mechanics

1925 to 1927Niels Bohr and Werner Heisenberg develop the Copenhagen interpretation, one of the earliest interpretations of quantum mechanics which remains one of the most commonly taught

1930Paul Dirac publishes The Principles of Quantum Mechanics, a textbook that has become a standard reference book that is still used today

1935Albert Einstein, Boris Podolsky, and Nathan Rosen publish a paper highlighting the counterintuitive nature of quantum superpositions and arguing that the description of physical reality provided by quantum mechanics is incomplete

1935Erwin Schrdinger, discussing quantum superposition with Albert Einstein and critiquing the Copenhagen interpretation of quantum mechanics, develops a thought experiment in which a cat (forever known as Schrdingers cat) is simultaneously dead and alive; Schrdinger also coins the term quantum entanglement

1947Albert Einstein refers for the first time to quantum entanglement as spooky action at a distance in a letter to Max Born

1976Roman Stanisaw Ingarden of the Nicolaus Copernicus University in Toru, Poland, publishes one of the first attempts at creating a quantum information theory

1980Paul Benioff of the Argonne National Laboratory publishes a paper describing a quantum mechanical model of a Turing machine or a classical computer, the first to demonstrate the possibility of quantum computing

1981In a keynote speech titled Simulating Physics with Computers, Richard Feynman of the California Institute of Technology argues that a quantum computer had the potential to simulate physical phenomena that a classical computer could not simulate

1985David Deutsch of the University of Oxford formulates a description for a quantum Turing machine

1992The DeutschJozsa algorithm is one of the first examples of a quantum algorithm that is exponentially faster than any possible deterministic classical algorithm

1993The first paper describing the idea of quantum teleportation is published

1994Peter Shor of Bell Laboratories develops a quantum algorithm for factoring integers that has the potential to decrypt RSA-encrypted communications, a widely-used method for securing data transmissions

1994The National Institute of Standards and Technology organizes the first US government-sponsored conference on quantum computing

1996Lov Grover of Bell Laboratories invents the quantum database search algorithm

1998First demonstration of quantum error correction; first proof that a certain subclass of quantum computations can be efficiently emulated with classical computers

1999Yasunobu Nakamura of the University of Tokyo and Jaw-Shen Tsai of Tokyo University of Science demonstrate that a superconducting circuit can be used as a qubit

2002The first version of the Quantum Computation Roadmap, a living document involving key quantum computing researchers, is published

2004First five-photon entanglement demonstrated by Jian-Wei Pan's group at the University of Science and Technology in China

2011The first commercially available quantum computer is offered by D-Wave Systems

2012 1QB Information Technologies (1QBit), the first dedicated quantum computing software company, is founded

2014Physicists at the Kavli Institute of Nanoscience at the Delft University of Technology, The Netherlands, teleport information between two quantum bits separated by about 10 feet with zero percent error rate

2017 Chinese researchers report the first quantum teleportation of independent single-photon qubits from a ground observatory to a low Earth orbit satellite with a distance of up to 1400 km

2018The National Quantum Initiative Act is signed into law by President Donald Trump, establishing the goals and priorities for a 10-year plan to accelerate the development of quantum information science and technology applications in the United States

2019Google claims to have reached quantum supremacy by performing a series of operations in 200 seconds that would take a supercomputer about 10,000 years to complete; IBM responds by suggesting it could take 2.5 days instead of 10,000 years, highlighting techniques a supercomputer may use to maximize computing speed

The race for quantum supremacy is on, to being able to demonstrate a practical quantum device that can solve a problem that no classical computer can solve in any feasible amount of time. Speedand sustainabilityhas always been the measure of the jump to the next stage of computing.

In 1944, Richard Feynman, then a junior staff member at Los Alamos, organized a contest between human computers and the Los Alamos IBM facility, with both performing a calculation for the plutonium bomb. For two days, the human computers kept up with the machines. But on the third day, recalled an observer, the punched-card machine operation began to move decisively ahead, as the people performing the hand computing could not sustain their initial fast pace, while the machines did not tire and continued at their steady pace (seeWhen Computers Were Human, by David Alan Greer).

Nobel Prize winning physicist Richard Feynman stands in front of a blackboard strewn with notation ... [+] in his lab in Los Angeles, Californina. (Photo by Kevin Fleming/Corbis via Getty Images)

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27 Milestones In The History Of Quantum Computing - Forbes

Quantum computings imminent arrival in Cleveland could be a back-to-the-future moment: Thomas Bier – cleveland.com

CLEVELAND -- The Cleveland Clinics partnership with IBM to use quantum computing for medical research brings to mind the most unfortunate instance of bad timing in the history of Cleveland: the 1967 merger of Case Institute of Technology with Western Reserve University just when the computer age was coming to life.

The merger squelched Cases opportunity to be among the leaders in the most revolutionary technology ever (and to benefit Cleveland with computer-related jobs). Might the arrival of quantum computing mean fresh opportunity?

At the time of the merger, Cases Department of Computer Engineering and Science had a good chance to be at the forefront. But capitalizing on that required support from senior administrators of the new Case Western Reserve University administrators who could not be focused on technology to the degree that Case, on its own, had been. In the new world of CWRU, technology was one of many fields.

A vision for the merged institutions prepared by a prominent commission gave only a brief mention of computing either as a current or potential strength of the new institution or as a challenge or opportunity to be addressed, according to Richard E. Baznik in Beyond the Fence: A Social History of Case Western Reserve University. The goose with golden innards wasnt even recognized, let alone encouraged to lay eggs.

Further, the merger created the worst possible institutional environment for computer advocates. Not only did administrators have to contend with issues of who might lose their job because of consolidation and who would have which power (particularly over budget), they also had to manage the challenge that all universities were facing as the post-World War II surge in enrollment and federal funding was ebbing.

Inescapably, the units that formed CWRU were locked in competition for shrinking resources, if not survival. And in that mix, dominated by heavyweights such as the School of Medicine and the main sciences, computers was a flyweight.

All of that was topped off by intense feelings among Case people of being severely violated by the Institutes loss of independence, which feelings were heightened by the substantial upgrading that had occurred under the longtime leadership of former Case president T. Keith Glennan (president from 1947 to 1966).

Thomas Bier is an associate of the university at Cleveland State University.

The combination of those potent forces upset CWRU institutional stability, which was not fully reestablished until the presidency of Barbara Snyder 40 years later.

Although in 1971, CWRUs computer engineering program would be the first of its type to be accredited in the nation, momentum sagged and the opportunity to be among the vanguard was lost. Today, the universitys programs in computer engineering and science are well-regarded but not top-tier.

But the arrival of quantum computing poses the challenge to identify new opportunity and exploit it.

Quantum computing, as IBM puts it, is tomorrows computing today. Its enormous processing power enables multiple computations to be performed simultaneously with unprecedented speed. And the Clinics installation will be first private-sector, on-premises system in the United States.

Clinic CEO and President Dr. Tomislav Mihaljevic said, These new computing technologies can help revolutionize discovery in the life sciences and help transform medicine, while training the workforce of the future and potentially growing our economy.

In terms of jobs, the economy of Northeast Ohio has been tepid for decades, reflecting, in part, its scant role in computer innovation. While our job growth has been nil, computer hot spots such as Seattle and Austin have been gaining an average of 25,000 jobs annually.

Cleveland cannot become a Seattle or an Austin. Various factors dictate that. But, hopefully, the arrival of quantum computing a short distance down Euclid Avenue from CWRU will trigger creative, promising initiatives. Maybe, as young technologists and researchers become involved in the Clinic-IBM venture, an innovative entrepreneur will emerge and lead the growth of a whole new industry. Maybe, the timing couldnt be better.

Quantum computing bring, it, on!

Thomas Bier is an associate of the university at Cleveland State University where, until he retired in 2003, he was director of the Housing Policy Research Program in the Maxine Goodman Levin College of Urban Affairs. Bier received both his masters in science degree, in 1963, and Ph.D., in 1968, from from Case/CWRU. Both degrees are in organizational behavior.

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Quantum Computing Market 2021-Industry Demands, Size & Share, Covid-19 Impact Analysis, Recent Developments, Global Growth, Trends, Top Operating…

Global quantum computing market is projected to register a healthy CAGR of 29.5% in the forecast period of 2021 to 2027.

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Global quantum computing market is projected to register a healthy CAGR of 29.5% in the forecast period of 2021 to 2027.

Quantum computing is an advanced developing computer technology which is based on the quantum mechanics and quantum theory. The quantum computer has been used for the quantum computing which follows the concepts of quantum physics. The quantum computing is different from the classical computing in terms of speed, bits and the data. The classical computing uses two bits only named as 0 and 1, whereas the quantum computing uses all the states in between the 0 and 1, which helps in better results and high speed. Quantum computing has been used mostly in the research for comparing the numerous solutions and to find an optimum solution for a complex problem and it has been used in the sectors like chemicals, utilities, defence, healthcare & pharmaceuticals and various other sectors.

Quantum computing is used for the applications like cryptography, machine learning, algorithms, quantum simulation, quantum parallelism and others on the basis of the technologies of qubits like super conducting qubits, trapped ion qubits and semiconductor qubits. Since the technology is still in its growing phase, there are many research operations conducted by various organizations and universities including study on quantum computing for providing advanced and modified solutions for different applications.

For instance, Mercedes Benz has been conducting research over the quantum computing and how it can be used for discovering the new battery materials for advanced batteries which can be used in electric cars. Mercedes Benz has been working in collaboration with the IBM on IBM Q network program, which allows the companies in accessing the IBMs Q network and early stage computing systems over the cloud.

Some of the major players operating in thisQuantum Computing MarketareHoneywell International, Inc., Accenture, Fujitsu, Rigetti & Co, Inc., 1QB Information Technologies, Inc., IonQ, Atom Computing, ID Quantique, QuintessenceLabs, Toshiba Research Europe Ltd, Google,Inc., Microsoft Corporation, Xanadu, Magiq Technologies, Inc., QX branch, NEC Corporation, Anyon System,Inc. Cambridge Quantum Computing Limited, QC Ware Corp, Intel Corporation and others.

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Research Methodology: Global Quantum Computing Market

Primary Respondents:OEMs, Manufacturers, Engineers, Industrial Professionals.

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Major Points Covered In This Report:

Chapter 1. Report Overview

Chapter 2. Global Growth Trends

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Chapter 7. Opportunity Analysis in Covid-19 Crisis

Chapter 9. Market Driving Force

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Quantum Computing Market 2021-Industry Demands, Size & Share, Covid-19 Impact Analysis, Recent Developments, Global Growth, Trends, Top Operating...