Qubits instead of just Bits

• BNP Paribas
  Exchange Traded Solutions Switzerland

There are some things you don’t need to understand in detail, as long as they work. Quantum computers, for example, are among them. Unlike conventional computers that calculate with classical bits, they use quantum bits, or “qubits.” By utilizing quantum physics, these qubits can not only take on the state 0 “or” 1, as is the case with classical bits, but they can also occupy both states simultaneously – meaning 0 “and” 1 at the same time. With this ability, quantum computers come significantly closer to the complexity of our world than a normal computer ever could.

From quantum computing and AI to quantum AI

Quantum computing is required, for instance, when medical research needs to investigate the interactions of molecules to develop new medicines. This could significantly accelerate drug development and potentially make clinical trials on animals and humans unnecessary. Furthermore, observers say that Artificial Intelligence will only become truly intelligent through quantum computers. The so-called “Quantum AI” is expected to overshadow all existing possibilities. By combining the two key technologies of quantum computing and AI, “Quantum Machine Learning” becomes possible, which mimics the functioning of our brain. According to experts, AI without quantum computing is comparable to “driving a Porsche with a ton-heavy trailer”; AI with quantum computing, on the other hand, is like a “Porsche with warp drive,” moving at faster-than-light speeds. While such comparisons may seem somewhat blunt, they do illustrate the dimension of this technological leap.

The disruptive power of quantum computing

Experts attribute a disruptive power to quantum computing – meaning that the technology will completely cast aside the existing and shake up markets. The standard “bit computer” could soon belong to the past, while the quantum computer becomes the standard. Although there are currently no affordable, “off-the-shelf” quantum computers available for everyone to buy, it is likely only a matter of time. Because of this, companies that are currently considered technological leaders in computing could face difficulties in a short period if they pay too little attention to quantum computing. New companies will emerge and take over the market. This is disruption in the truest sense of the word.

Quantum computing for your portfolio

Investors can already integrate the theme of quantum computing into their portfolios today. BNP Paribas offers leveraged products on specialized “quantum computing companies” such as Rigetti Computing, IonQ, and D-Wave Quantum. In addition, giants such as IBM, Alphabet, and Microsoft are active in the “quantum business,” with BNP Paribas offering products for these companies as well.

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