The Fourth Wealth Creation Revolution: A Double-Edged Sword
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The evolution of science and technology has reached a pivotal moment, ushering in a fresh wave of wealth creation while simultaneously posing threats to existing fortunes. This situation reveals the fragility of wealth, as corporate assets become vulnerable to seizure and national wealth risks erosion if not properly safeguarded.
In essence, this article serves as a WARNING and a showcase of unrecognized truths.
This discussion revolves around dual strategies to shield wealth while seizing emerging wealth creation prospects. As Family Offices and ultra-high-net-worth individuals (UHNWIs) pivot their investment strategies towards tech-centric portfolios, many fail to comprehend the full scope of the changes occurring in technology fundamentals.
Reflecting on my presentation about Deep Tech at the largest Family Office Summit in Monaco last June, it became evident how unaware many wealthy families and investors are. This ignorance could result in significant losses as this new cycle unfolds.
The New Era of Wealth Creation
The Fourth Wealth Revolution is upon us, distinct from the Internet of Things (IoT) or Robotic Process Automation, often labeled as the Fourth Industrial Revolution (4IR). This revolution pertains to wealth creation cycles that have historically defined opportunities for generating new wealth—a strategy that has enabled industrialists, investors, and entrepreneurs to amass significant fortunes.
Initially, steam powered the Industrial Revolution, with figures like Andrew Carnegie in steel and Cornelius Vanderbilt in railroads seizing wealth creation opportunities.
Then came electricity, launching the Electric Revolution, giving rise to innovations in lighting and labor-saving devices. Notable figures such as John D. Rockefeller, one of history's wealthiest individuals, and Henry Ford emerged during this era, bridging the gap between horse and machine power.
The advent of transistors ignited the Digital Revolution, allowing individuals like Bill Gates, Jack Ma, and Jeff Bezos to generate modern fortunes, while Amancio Ortega (Zara) and Karl Albrecht (Aldi) built vast empires utilizing existing technology.
Scenario: The Fourth Wealth Creation opportunity has just arrived.
What will you do next?
We now stand at the intersection of Artificial Intelligence, Nanotechnology, and Biotechnology, all of which are substantial revolutions, underpinned by the transformative potential of Quantum theories that herald the Quantum Computing Revolution.
Quantum Computing represents the most significant Wealth Creation Revolution to date, with the potential to generate a new class of multi-trillionaires. This event horizon is unlocking new possibilities, but it carries a WARNING as it simultaneously represents the greatest direct threat to existing wealth.
Embracing New Wealth Opportunities
With Quantum Theories and Algorithms, we can deepen our understanding of the world and enhance various sectors such as healthcare, transportation, food production, energy, and more, paving the way for ambitious endeavors like space colonization.
The crux of the challenge is straightforward: Quantum Computers can effortlessly break any encryption or cybersecurity framework. They introduce massively parallel computing power, potentially hundreds of thousands or even millions of times more potent than today's classical silicon-based systems.
We are witnessing the decline of Moore’s Law, which once ensured the security of our wealth through silicon computing, now rendered obsolete.
Silicon-based systems have reached their limits, as the minuscule wafer layers within chips containing circuits and transistors are now merely a few molecules wide. This transition signals our entry into the realm of Quantum Physics, engaging with the very particles that constitute life itself.
Here’s a thought experiment: can you factor this?
What two numbers yield the output of 617?
Why is this significant?
All cybersecurity systems hinge on one essential fact: the inability to factor large numbers. Classical computers would take millions of years to do so. Thus, our security measures have relied on simple mathematics, contingent upon the insufficient computing power available to uncover relationships among large numbers. Despite the advancement of various algorithms, the fundamental issue remains the slow processing speed of silicon chips, which operate using binary language and sequential processing, leading to significant delays.
Did you know the entire Cyber Security industry is predicated on the poor performance of classical computers as its primary defense?
And that advantage has now vanished!
For decades, mathematicians, physicists, and computer scientists have grappled with the challenge of factorizing large numbers to advance various fields. Processing colossal numbers, complex chemical equations, or vast datasets can take millions or even billions of years.
IMPORTANT: This inefficiency in processing is all that separates your assets from potential hackers.
Now, imagine the possibilities with computing power that is millions of times faster. The answers to the world's most complex problems could be delivered in seconds!
How can you leverage this advantage? Analyzing financial markets, uncovering breakthroughs in pharmaceuticals, and developing innovative propulsion systems, all of which open countless new avenues for wealth generation. This isn't merely about being the first mover; it's about being the first to win!
At last, we will gain insights into how the world truly operates. We can address starvation, cure diseases, extend human life through genome sequencing, and optimize chemical interactions to discover effective drug combinations. Each of these endeavors requires computational capabilities that exceed anything currently at our disposal.
A Demonstration of Unprecedented Power
What if I told you that factorizing the 617-character number shown above would take approximately 1 billion years using conventional computers? Yet, with a Quantum Computer, you can obtain the result in mere seconds.
The magnitude of this advancement is staggering, and we’ve had a century to validate the underlying science.
Historically, the only defense for safeguarding wealth has been our inability to process large numbers and datasets. But it gets more complex. Quantum Computing, in conjunction with AI (Quantum AI), can generate pure random numbers for the first time.
What happens if machines create systems that we humans cannot crack? What if AI decides to siphon off your wealth? Who will the authorities pursue then?
Regrettably, Quantum Computing exposes the vulnerabilities inherent in all human-made systems, rendering traditional algorithms ineffective. Quantum AI can trace pathways back to the source, easily identifying patterns in data and, in the case of encryption, revealing the key in seconds.
By leveraging massively parallel computing, native to Quantum Computers, it can efficiently factor the 617 number above. The next generation of computers utilizes Qubits—analogous to the bits in silicon processors, where a Qubit can exist as both a 0 and 1 simultaneously.
Many people are curious about how Quantum Computing operates, but we are on the brink of a groundbreaking frontier. For the first time in history, a monumental leap is imminent, redefining our understanding of what we thought we knew.
Consider Quantum in this light.
With the introduction of microscopes capable of observing molecules, photons, and electrons, we can finally begin to grasp the intricacies of nature and life that we have been unable to compute. Until now, we could only simulate and hypothesize.
We can identify chemical compounds, enzymes, and proteins, peeling back layers to reveal the interactions of electrons and photons, the fundamental building blocks of existence. The sheer volume of information and combinations is so vast that the computational requirements are beyond comprehension.
So, what are the opportunities and threats posed by Quantum Computing? It offers the key to understanding the world around us. Until now, we could only view life and nature through a flawed lens.
I hope you’re following along. A prime example is the way plants convert sunlight into energy through photosynthesis. A process so simple that classical computers would take generations to compute. A Quantum Computer could unlock these secrets in mere minutes.
The implications are both mind-boggling and somewhat unsettling, given humanity's track record with technology.
The answer to factorizing the 617 number? A little under two minutes—quicker than boiling a kettle.
All at Once
It’s crucial to recognize that we are experiencing an All at Once moment in human history, unlike anything before, and we have no clear understanding of how it will unfold. The internet transformed societies at multiple levels, as did electricity and transistors. Now, with the advent of technologies such as Augmented Reality, IoT, Machine Learning, Artificial Intelligence, and Biotechnology, combined with other Deep Tech innovations, we are poised for significant advancements.
However, introducing Quantum Computing into this mix will result in a millionfold acceleration of progress. This Quantum Leap carries an existential risk with AI, offering two divergent paths: one towards conquering the cosmos, the other toward a SuperIntelligent oblivion, as posited by Nick Bostrom.
Many individuals, regardless of their wealth or asset holdings, fail to grasp the barriers to solving Hard Problems. These issues might not even register on their radar through the lens of classical computing but can be identified and unlocked using Quantum Computing, leading to potential monetization.
New avenues for Wealth Creation will emerge as we redefine the Hard Problems using new parameters, allowing us to derive answers swiftly. Where do we begin?
A cure for Alzheimer's, diabetes, a zero-emission fuel, or how to extend human life—these are just a few examples. The race to discover and market these solutions will commence, with the hope of benefiting humanity or, conversely, engaging in unethical practices as choices in a Quantum realm coexist.
Your Secrets Are My Secrets
With a Quantum Computer, I can dismantle, unravel, and infiltrate any security system reliant on large numbers and patterns—which includes all of them. Even biometric systems convert human traits into numerical streams. I can process enormous numbers without needing a traditional key, as I can generate my own in seconds. The limitations of classical computing can no longer serve as a security defense.
You are now completely exposed, vulnerable, and defenseless.
Consider this: your iPhone once had a four-digit security code, allowing a hacker ten attempts to guess the number. A four-digit code increases that to 10,000 attempts. Apple has since moved to six digits, equating to one million attempts, requiring years for a hacker to crack. However, the security principle remains simple.
Quantum Computers process numbers differently using superpositions and entanglement, enabling massively parallel processing in a ‘probabilistic’ manner. They can manage multiple states simultaneously, reducing processing time from millions of years to mere seconds. It’s difficult to grasp, and I agree it sounds surreal. While I could delve deeper into Quantum Mechanics, I plan to address Quantum-based AI in my next article, which may be quite alarming.
“To know and not to do, is really not to know.” (Stephen Covey)
This insightful quote from Stephen Covey resonates deeply. Given the information I’ve shared, what actions will you take?
Having spent over four decades in technology with a background in computer science, I am not a traditional tech enthusiast. I learned machine code programming in the late 1970s and early 1980s, enjoying the process of developing chipsets to solve problems, and yes, I engaged with Boolean algebra. At the time, I didn’t realize how relevant these experiences would become in understanding Quantum Computing decades later. My focus has always been on designing solutions with the latest technologies to address business challenges.
A few years ago, I discovered the first Quantum Computer had been developed, and my previous understanding of data processing was completely transformed. My research into Quantum Theories and computing methods revealed various approaches to constructing Quantum Computers (Superconductors, Photons, Trapped Ions, and Diamonds). While standards, compilers, and operating systems are still in the works, they are in development, and Quantum will undoubtedly become the primary pathway for all technology.
A Problem for Blockchain
Since 2012, I have been designing and building Blockchains, integrating them with other Deep Tech that relied on encryption protocols (including elliptic curve methods). Bitcoin transactions utilize long numeric addresses (between 26-35 digits), coupled with lengthy keys (private keys) typically represented as 256-bit alphanumeric hexadecimal strings or 64-character sequences. Even at this scale, factorizing these numbers without the key is nearly impossible, hence the risk of losing access to Bitcoins or other digital assets.
Now that Quantum capabilities undermine encryption, we are developing Quantum Blockchains and constructing a new layer of defense. Although Quantum technology is not yet widely available for commercial use, it is on the horizon, with IBM recently announcing the option to rent time on their Quantum machines for testing purposes.
Houston, We Have the Ultimate Challenge…
We’ve been led to believe in the efficacy of a burgeoning cyber security industry, convincing everyone that they possess the means to protect our data from cybercrime and attacks. The harsh reality is that these defenses may prove futile as the very systems designed for protection become obsolete.
It was only a matter of time before something like Quantum Theory, which has existed for a century since Max Planck's Wave Theory, would transition into practical application. This epiphany prompted my deeper exploration of Quantum Mechanics. Previously, I found classical physics too deterministic in its outcomes, but I discovered that Quantum Theory aligns more closely with the randomness I appreciate.
A Suitable Response
Time is of the essence to respond effectively, to defend wealth while creating new wealth opportunities. Currently, only a few technically astute options exist to counter the impending Quantum threat.
Quantum Computers require new programming approaches to maximize Qubit utility, which is fundamental to their ability to process vast datasets. However, I could easily instruct a Quantum Computer to breach your defenses and locate the key.
Our brightest minds are currently engaged in Quantum research, much of which is happening under the radar but will soon surface.
During my Deep Tech Investing discussion at the Family Office Summit in Monaco, I emphasized that major tech companies are already making significant moves in this arena, aggressively acquiring AI and Quantum firms with the hidden goal of exerting control over us—an unsettling notion.
This sets the stage for the fundamental challenge of the next decade: finding experts who can guide private wealth and capital through these turbulent waters. Unfortunately, these experts are unlikely to emerge from traditional venture capital, wealth management, or investment advisory sectors.
What’s Next?
When engaging with Family Offices that have safeguarded their wealth for generations, it’s fascinating to observe their reactions upon learning about Quantum Computing. Initial responses often include disbelief or labeling it as “science fiction.” They question why their banks or wealth managers haven’t informed them.
Many find this information incredulous; they struggle to process it. Their inherent conservatism surfaces, and they mistakenly believe they have ample time—an illusion that could lead to losing everything.
Banks are acutely aware of the vulnerabilities in their global systems, yet they remain silent, fearing panic or runs on the bank. They understand the necessity of addressing Quantum Computing but choose not to disclose the threat.
Families and UHNWIs may trust that the companies and assets they hold have robust security systems, justifying their significant investments in cyber security. When I explain the reality, it often leaves them feeling vulnerable and hurt, as I present a starkly different view of the computer science landscape.
Few anticipated this shift, despite the principles of Quantum Mechanics being established since the 19th century. However, there remains a window for response, though the timeline is uncertain as nations and military forces invest billions in developing the most powerful Quantum Computers. Just as in the race to advance AI, being a runner-up is not a desirable position.
Quantum Time is Shortening
How long before your wealth and assets are at risk? Months, perhaps. We do not have years as the first Quantum Computers are already operational. Fortunately, their Qubit processing capabilities are still relatively limited, comparable to the most powerful classical computers.
The tipping point begins at 108 Qubits, escalating to 1,000, then 1 million, and potentially even 100 million. By 2025–2030, as AI aids in achieving exponential Super Intelligence, it may be game over.
The concern is that when Quantum Computing collaborates with AI, the pace of progress becomes unpredictable, reminiscent of AlphaZero’s 100-0 victory over AlphaGo in just four months of learning.
Immediate actions are necessary. It is feasible to implement Quantum technologies as an initial layer of protection while devising strategies to capitalize on this Wealth Revolution opportunity. The good news is that starting now positions you at the forefront; ignoring it could result in being left behind, with the potential to lose everything.
Your wealth remains at risk, yet we also stand at the dawn of the most significant Wealth Creation opportunity in history.
How you navigate this landscape will be crucial for your future and legacy.
“Ignorance is Tested.” Do not bury your head in the sand, believing it won't affect you, because it already is.
For assistance in understanding your vulnerabilities and developing strategic options, please reach out.
© Copyright 2019 Nick Ayton