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Will quantum computers revolutionize the world? The Courier – The Courier

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If you threw an encyclopedia to be devoured by a black hole, could you ever retrieve its information back again?

Even with todays most powerful supercomputers, there are limitations to the complexity of possible calculations, preventing us from understanding some of the greatest mysteries in particle physics.

In an attempt to bridge the divide, Google LLC claims to have achieved quantum supremacy, using a quantum computer to perform a calculation in 200 seconds it would take the largest supercomputer 10,000 years to complete. Even though industry competitors like IBM dispute Googles claim, no one disputes the future lies in quantum computing.

Computer science researcher Jim Kowalkowski (left) and particle physicist Steve Mrenna (right) work on Fermilabs Quantum Science Program (photo by Kate Zadell)

Jim Kowalkowski transitioned to quantum computing at Fermilab National Laboratory in Batavia, Il. because of the exciting new ways it challenges researchers to think. Fermilab is run by the U.S. Department of Energy, specializing in high-energy particle physics. As part of a national initiative, federal funding has fueled research into quantum computing as part of the labs Quantum Science Program.

After the recent headlines, Kowalkowski was surprised to receive calls from people who never inquire about science. He said Fermilab is not in the process of building a quantum computer, but rather performing physics experiments using different quantum apparatuses to lay the groundwork for the future.

On a regular computer, information bits are in a determinant state of on or off, one or zero, said Kowalkowski. On a quantum computer, a qubit is quantum mechanical and can exist in both states until you observe it. These silicon qubits square the magnitude of how many states you can represent. (However,) current technology has limitations to how many qubits can be added and how big a problem they can solve. Right now, 53 qubits, (number in Google and IBMs quantum computers) isnt big enough to compute the harder problems. Over the next decade, there needs to be a breakthrough in materials science. Theres a lot of research to do before we get there.

The longer researchers can maintain the superposition state (both one and zero), the more time the quantum system has to perform operations. Fermilab uses 3-D-microwave resonators to manipulate electromagnetic fields, establishing the superposition state. According to Fermilab, their superconducting radio-frequency (SRF) resonators enable superposition durations 1,000 times more than the best resonators found in other quantum computers. Researchers aim to develop qubits with even longer superposition durations and string them together into a quantum computing system.

Alex Romanenko, head of quantum technology at Fermilab, inspects a quibit made with accelerator technology (photo provided by Fermilab)

Kowalkowski said a dilution refrigerator is used to cool the superconducting qubits to near absolute zero. Theres a chip located in the bottom containing harmonic oscillators. Using classical computing methods of communication, specific radio frequencies are sent into the chip resulting in the creation of artificial particles because of the quantum principle of particle-wave duality. This establishes temporary artificial atoms.

Unlike a traditional computer, these are probabilistic machines, said Kowalkowski. You have to establish the state over and over again to derive the answers from a large statistical sample. In the next two years, it would be fantastic having a hardware system to create qubits with SRF cavities allowing us to measure increases in how long a state lasts and how long of a calculation we can operate.

(Joey Weslo: inside look into Fermilabs neutrino research)

(Joey Weslo: challenging gender inequality in physics)

Steve Mrenna is a particle physicist at Fermilab who sees quantum computing research as an exciting new opportunity. He believes the limitations of classical computers are a hindrance to solving the more difficult and fascinating problems.

The power of our lab is the ability to bring together people of different skill sets to solve difficult problems of common interests, said Mrenna. A lot of other people in quantum computing work on problems that are more esoteric (toy problems) in interest. We have real problems that were trying to solve to help us understand something about nature. We are still figuring out how to set up quantum computers to solve these problems.

Mrenna said quantum computing can provide breakthroughs both inside and outside the field of physics. The stronger computing power is predicted to help create new medicines as quantum chemists use quantum mechanics to better understand and synthesize molecules. Cryptologists and those in cybersecurity also endeavour to use quantum computers to create encrypted messages that cannot be hacked. Because of the properties of quantum mechanics, once you measure something, the wave function collapses and the coded information is changed or lost.

Eric Holland, deputy head of quantum technology at Fermilab, examines the labs quantum dilution refrigerator (photo provided by Fermilab)

What we are currently doing is optimization problems, said Mrenna. Whats the best way to do something? Whats the minimum energy you would produce by putting things together? Quantum computers give the hope you can solve these problems that appear impossible with classical computers. The goal is to eventually work on quantum mechanical problems like the Schrodinger equation which is seen as the key to understanding quantum mechanical behavior. Better understanding particle wave duality will help calculate what happens when you collide together protons, like at the Large Hadron Collider in Switzerland.

Mrenna said they can currently solve the problems they are looking at better with classical methods, but each solution is a stepping stone to progressing quantum computations towards currently unsolvable problems.

Kowalkowski said the strength in quantum computers over supercomputers comes in their systems approach to solving problems of multi-faceted inputs. This is because qubits are synchronized utilizing the quantum principle of entanglement.

Quantum entanglement means you are establishing an intimate relationship between particles, so when you manipulate one part, it has a global effect on the entire system at once, said Kowalkowski. When solving a problem, you take the machine and put its bunch of particles in the state you desire. Then by manipulating them through magnetic fields or radio frequency pulses, the entire system is affected. When youre manipulating a state all at once, it requires a different programming model altogether.

Industry wants to be able to utilize this because scheduling and computing with multiple interactive factors is really difficult, continued Kowalkowski. Weve been working on routing a (hypothetical) traveling salesman through multiple cities while trying to maximize profit and efficiency. With traditional computers doing one manipulation at a time, the increasing number of factors makes the problem almost unsolvable. However, with a small number of qubits, you can represent this complex system. By manipulating the whole state and turning the information into a global problem, you get your solution.

Mrenna said the basic idea of entanglement is some problems have more than one solution. Quantum mechanics tells us the solution is a mixture of the two. One of Fermilabs goals is to one day teleport entangled photons between the lab and Argonne National Laboratory 30 miles away in Lemont along underground fiber optic cables. This will enable the communication of information between two distant objects like the direction of a twin magnets located at each lab. Researchers are currently teleporting entangled photons across buildings at Fermilab. Separation of entangled photons must be done very carefully to maintain the coherent state.

Because of qubits extreme precision, they are very vulnerable to environmental interference. Sound disturbances are removed from the dilution refrigerator as best as possible, but quantum computers still need to operate the same calculation multiple times to identify and quantify impacted solutions. A quirk of this sensitivity is the ability of researchers to detect incredibly fine variations in environmental pressure and temperature. Another side-effect is the systems ability to detect and measure dark matter particle interference. This detection can help explore questions physicists have about the mysterious dark matter which constitutes 27 percent of the Universe compared to normal observable matters 5 percent.

Mrenna said the quantum computing field is so exciting because they are developing new machinery and using tools theyve never been introduced to.

When a science field is new, theres an opportunity to really contribute something foundational to the science, said Mrenna. If you enter a field thats well-established, its harder to carve out your niche. Someday, the technology will allow us to harness quantum computers full potential. Growing up, it seemed like particle physics was the coolest thing out there. It was the biggest questions, with the biggest ideas. Finding the hardest problems to solve has been a drive all throughout my life. If its not the hardest problem, why go after it?

(for Fermilab student internships info visit internships.fnal.gov/)

.

(Joey Weslo: Stephen Hawkings eternal light (1942-2018)

(Joey Weslo: physicst Brian Greene discusses string theory)

(Joey Weslo: Argonnes new developments with lithium-ion)

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Researchers Have Achieved a New Level of Quantum Supremacy – TechDecisions

According to Science Daily, researchers have made another step towards quantum supremacy.

The researchers, from the University of California Santa Barbara, and John Martinis group (from Google) have solved a problem that was once considered intractable for classical computers; they were able to do so using 53 entangled quantum bits, or qubits. The computation was completed in 200 seconds on a quantum computer, which is 1.5 trillion times faster than a classic supercomputer. A classic supercomputer is estimated to be able to solve the same problem at a speed of 10,000 years, researchers told Science Daily.

Aside from solving the complex problem, the goal of the study was to test the quantum computers ability to hold and rapidly manipulate tons of complex, unstructured data. Science Daily says that this goal was accomplished:

The research has resulted in a very real and valuable tool: a certified random number generator. Useful in a variety of fields, random numbers can ensure that encrypted keys cant be guessed, or that a sample from a larger population is truly representative, leading to optimal solutions for complex problems and more robust machine learning applications.

John Martinis group has been working on this for over 20 years.

Quantum supremacy success translated:

In short, the success of the research points to a new and faster way for researchers to acquire knowledge. While more work is being done with the quantum computer, Science Daily says that short term effects of the study might soon be seen in fields that heavily rely on data, including quantum mechanics, including thermalization, and chemistry.

Long term, researchers, including those at UC Santa Barbara and John Martinis team, are focusing on improving coherence times, detecting and amending errors, and the design of the actual supercomputer.

This is a major accomplishment, Joe Incandela, UC Santa Barbaras vice chancellor for research, told Science Daily. We are at the threshold of a new era of knowledge acquisition.

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Geeking Out With Legendary Futurist and Investor Steve Jurvetson – mySanAntonio.com

Photo: Capability Amplifier

Geeking Out With Legendary Futurist and Investor Steve Jurvetson

Listen to this week's episode of Capability Amplifier here!

Lets get one thing straightwe are living inexciting times! There has never been more diversity and opportunity when it comes to technology. Things we only used to see in sci-fi movies and on The Jetsonsare now found inreality.

Recently I attended The Near Future Summit in San Diego, CA. It's anawesome event centered around acommunity of Entrepreneurs, activists, inventors and investors who enjoy helping one another achieve lofty goals. The event is packed with celebrities, Silicon Valley pioneers, heads of state, influencers and royalty.

At the event, I had the incredible opportunity to meet and interviewSteve Jurvetson. I was super psyched to speak to Steve and have the chance to pick his brain about the future of technology.

One of the things Steve is blown away by is the diversity and breadth of opportunities for venture capitalism and revolutionary entrepreneurialism. Inthe '90s, when Steve started as a VC, it was all software, semiconductors and healthcare. That's it. If you invested in automotive, you'd lose your money. If you invested outside of this narrow domain, it was a fool's errand. But today? Almost every industry is going through a massive disruptive revolution, some moving faster than others like automotive and aerospace.

Related:4Artificial IntelligenceTrends to Watch

Eventually, everything from agriculture to financial services to you name it, are converting from software-centric businessesto intelligence-centric businesses. Deep learning with AI and neural networks is going to have a major impact.

Lets talk about quantum computing. Its a big area of interest for Steve and something hes put a lot of resources into. Quantum computing is as weird as the name implies. It uses quantum mechanics as the fundamental basis of computation in a way that is unlike any computer you've ever heard of before. The important thing to keep in mind is it's not just another supercomputer: it engages the computational resources of parallel universes!David Deutsch described it like this, If you took the entire matter of the universe, and reconstituted it into the best computer, it still cannot solve certain problems. And these computers could.

I asked Steve onequestion about how AI will affectthe average business owner.

The first effect, he said, would be, machine learning or deep learning.My advice for a small business ownerwould be to just spend a little bit of time watching YouTube videos or take a Udacity course on machine learning. It's remarkably simple to learn and if you were starting any new business today, to nothave a machine learning element to your business model would be as bizarre as to ignore mobile phones or the internet.

Related:What Every Entrepreneur Must Know AboutArtificial Intelligence

Steve believes that machine learning/deep learning is the most important advance in how we do engineering since the scientific method itself. It's essentially a process of, how do we learn how do we build complex systems? How do we transcend our own intelligence eventually, to build things that are smarter than ourselves?

Check out the whole Podcast Interview HERE and dont forget to subscribe, leave me a message, rate, review and share!

Related:Geeking Out With Legendary Futurist and Investor Steve JurvetsonInside the Invention of the Dose DialHow to Start a Podcast in Two Days

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Reality is subjective to the observer – scientists make stunning claim in quantum study – Express.co.uk

Scientists have discovered that facts and reality may be subjective to the individual observing them. This is because in quantum mechanics which examines particles on the sub-atomic level particles can exist in a point of superposition. Perhaps the most famous example of superposition is Erwin Schrodingers thought experiment, Schrodingers Cat.

To demonstrate his theory, Schrodinger said a cat placed in a box whose fate depended on the outcome of a random event could be both alive and dead simultaneously, its state only being known when the box is opened.

In quantum physics, these facts are established as a contradiction and a person inside the box would observe a definite answer, while a person on the outside observes a superimposed state.

Massimiliano Proietti, lead author of a new study and PhD student at Heriot-Watt Universitys Mostly Quantum Lab, said: This brings about a paradoxical situation where the fact established inside the laboratory seemingly contradicts the fact observed on the outside.

To test the theory, the team created a quantum test which included four observers in a quantum computer.

Six entangled light particles which means they are in a state of superposition were introduced to the observers.

The team were able to show that inside and outside observers could not agree as to what happened to the entangled particles.

Lab leader Professor Alessandro Fedrizzi, adds: The insight we gained is that quantum observers may indeed be entitled to their own facts. If we insist that this shouldnt be the case for classical human observers, the challenge now is to pin down where the two domains depart from each other.

It may for example hint at quantum mechanics not being applicable to big, everyday objectssomething that is allowed by textbook quantum physics.

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Bitcoin May Hit $4,500 But Miners Have Mostly Capitulated Analysts – Cointelegraph

The Bitcoin (BTC) price has almost reached its bottom for 2019, but the threat still remains for markets to hit $4,500, according to one expert.

Well-known statistician and analyst Willy Woo delivered his analysis in a live YouTube discussion about Bitcoins future with trader Tone Vays on Nov. 20.

As BTC/USD hovers around the $8,000 support, analysts have recently turned more bearish on its short-term outlook, comparing current action to that which preceded 2018s lows of $3,100.

For Woo and Vays, this years cycle could see a drop of around 71% versus the highs of $12,800 seen several months ago.

That would put Bitcoin at $4,500 before next Mays block reward halving event, something which consensus favors as a bullish turning point for price.

Woo added that the market was still net long and that he was waiting for a short phase to trigger a reversal. Time was limited to secure further drops, he said, due to the proximity of the halving. Most weaker miners have already capitulated due to the previous downturn, reducing the desire to further weaken the market.

Regular Cointelegraph contributor filbfilb received a direct mention during the debate, thanks to the accuracy of his annual Bitcoin price outlook. For him, too, now was a time to be risk-off.

Im totally back in cash now. There doesnt seem to be obvious sign of reversal. Going to sit on the sidelines until there is more indication, he told followers of his Telegram trading channel on Wednesday.

As Cointelegraph previously reported, the popular Stock-to-Flow model for charting the Bitcoin price calls for an average BTC/USD value of $8,300 until May. After that, the trajectory is open for a giant $100,000 leap by the end of 2021.

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Bitcoin Could Be About To Make A Significant Move – Forbes

Bitcoin and cryptocurrency investors have been closely watching the market over the last few weeks, with November and December a historically key time for major market moves.

Last November, the bitcoin price halved from around $6,000 per bitcoin to just $3,000, while the year before November kicked off bitcoin's epic bull run to almost $20,000.

The bitcoin price has historically moved sharply towards the end of the year but there's no ... [+] guarantee 2019 will be the same.

Looking further back, November 2013 saw the bitcoin price suddenly climb from around $200 per bitcoin to over $1,000 by the middle of December.

Bitcoin traders have noticed the pattern, though have struggled to explain why the price seems inclined to move suddenly in the final couple of months of the year.

"A year ago, today was the day bitcoin started its drop from $6,000 to $3,000," one prominent bitcoin and crypto trader wrote on Twitter yesterday. "Two years ago, today was the day bitcoin started its parabolic rise from $6,700 to $20,000."

Others cautioned against making bets the market will move again this year, with bitcoin and crypto market analyst, previously of brokerage eToro, Mati Greenspan warning, "both [the 2017 and 2018 bitcoin spike and slump] were irrational and unexplainable moves that were eventually reversed by the market."

The bitcoin and cryptocurrency market has been sliding so far this November, with the bitcoin price down some 6% since the start of the month.

In October, after weeks of stagnation, the bitcoin price suddenly dropped only bounce higher again a couple of days later, leaving many bitcoin and crypto analysts scratching their heads over the exact cause of the extreme market volatility.

The bitcoin price has continued to swing wildly despite hopes the market would have calmed and ... [+] matured.

Meanwhile, technical data suggests bitcoin could be heading into rough waters, with a closely-watched chart shrinking to its narrowest since June.

The tightening of the trading range between bitcoins 50- and 200-day moving averages could trigger a sell signal, it was first reported by Bloomberg, a financial newswirewith one analyst seeing echos of last November's sell-off.

"The best way to describe the market is its retracing last years bear market," said Bloomberg Intelligence analyst Mike McGlone.

"Its in no hurry to take out the old highstheres a hangover of residual selling from the parabolic rally in 2017. Theres just a lot of people who bought it, got way too overextended, who will be responsive sellers."

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Bitcoin Slips in KPMG Rankings, But Cryptocurrency Innovation Has Strong Showing – Cointelegraph

On Nov. 18, Big Four auditing firm KPMG released its 2019 Fintech100 ranking, which lists the top 100 fintech firms in the world. The list saw a drop in Bitcoin-related companies but reinforced innovation in the payments industry.

As was the case in 2018, AntFinancial owned by Jack Ma of Alibaba led the ranking. AntFinancial controls Alipay, one of China's leading payment systems, and is valued at $83 billion.

Among the companies that offer innovation through blockchain and cryptocurrency, JD Finance was best placed in third place, surpassed by Grab, an Uber-like rideshare app that also functions as a payment system in Singapore.

Robinhood dropped from 8th place in 2018 to 14th in 2019. However, crypto innovation remains strong according to KPMGs rankings, which featured blockchain-focused OneConnect (18th), Revolut (26th), Coinbase (34th), Liquid (38th) and Banketa (42th).

Commenting on the strength of Chinese companies on the list, Chris Wang, partner and head of fintech at KPMG China said:

"As fintech development continues to go strong in China, we are seeing some changes in China's fintech landscape. Aligned with trends we observe globally, we see an increasing number of wealth, insurance and multi-sector companies in China on the list, which indicates that technologies and innovations have spread into more financial services sectors."

The report also named Binance, MemaPay, Moin, Silot and Tokeny among emerging companies in the top 100.

KPMG further points out that Fintech100 companies raised over $18 billion in the last 12 months and more than $70 billion in their lifetimes. The report identifies these companies as changing the world with their respective innovations, serving over 2.5 billion customers globally.

Although fintech firms have emerged as a financial services option, KPMG points out that many companies on the Fintech100 list have benefited from open banking, allowing them to access customer banking to create more personalized experience and services. Early fintech innovators with single product propositions are now diversifying to fulfill customer needs, often through banking licenses and supported by favorable regulatory developments.

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Bitcoins climate change impact may be much smaller than we thought – New Scientist News

By Adam Vaughan

Getty Images

Bitcoin mining consumed enough electricity last year to release carbon emissions on a par with Estonia, according to a study that suggests the climate change impact of the cryptocurrency isnt as bad as previously thought.

Past research has suggested that the emissions from mining bitcoin where computing power is used to solve mathematical problems to create new currency may be as high as 63 megatonnes of CO2 per year. Some researchers have even claimed the cryptocurrency alone could bust global climate goals.

Susanne Kohler and Massimo Pizzol at Aalborg University in Denmark found that earlier estimates had made blanket assumptions that carbon emissions from electricity generation were uniform across China, where they estimate just over half of all bitcoin mining takes place.

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But breaking down the emissions within China to a more regional level produced a much lower global footprint for the crytpocurrency, of 17.29 megatonnes of CO2 in 2018. While coal-heavy Inner Mongolia accounted for just 12.3 per cent of bitcoin mining, it resulted in more than a quarter of the total emissions. The reverse effect was seen in the hydropower-rich Chinese province of Sichuan.

The researchers also found that it is overwhelmingly the electricity use of bitcoin mining that contributes to the cryptocurrencys carbon emissions, not the production and disposal of the computers doing the mining, which accounted for just 1 per cent of the emissions.

Kohler says the findings dont mean we can stop worrying about bitcoin especially given electricity use per new bitcoin is growing but we should put it in perspective. On the one hand we have these alarmist voices saying we wont hit the Paris agreement because of bitcoin only. But on the other hand there are a lot of voices from the bitcoin community saying that most of the mining is done with green energy and that its not high impact, she says.

Getting a better handle on bitcoins carbon footprint will remain tricky until we have more accurate data on where mining takes place information which Kohler and Pizzol say is scarce today.

Camilo Mora at the University of Hawaii, who wasnt involved in the work, says the results show the need for more transparency on the location and equipment used in bitcoin mining. Even though the new estimate of the cryptocurrencys climate contribution is smaller, he says it is hard to believe the impacts from mining are trivial, given many countries, including China, are considering regulating the activity because of its large electricity consumption.

Journal reference: Environmental Science and Technology, DOI: 10.1021/acs.est.9b05687

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Bitcoin price plunges 5 percent to $8,100 within hours – Decrypt

Bitcointhe worlds largest and most popular cryptocurrency by market captoday dropped by roughly 5 percent within just a few hours. It is currently trading at around $8,100 per coin.

Bitcoin opened the day trading for roughly $8,520 but has since dropped in price by as much as $400. The price of Bitcoin hasnt been this low since late September, when Bakktthe Bitcoin futures exchange backed by the owners of the New York Stock Exchangedebuted to a slow start.

At the time, Bitcoin was trading for a solid $9,500, though Bakkts dismal introduction to the market led the cryptocurrency to fall by more than $1,400 just days later.

The price of Bitcoin recuperated somewhat in late October following positive comments about blockchain from Chinas president, Xi Jinping. China's president stated that he believed blockchain could potentially revitalize his countrys economy and infrastructure, and that he would be pushing blockchain innovation in the coming months.

In the weeks since, Bakkt has seen a boost in its business, trading more than $18 million in bitcoin futures contracts during the final week of October. Bitcoin then seemingly recovered, spiking to around the $10,000 per coin mark briefly before falling back into the $9,000 range.

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And while the price has, of course, continued to bounce up and down within the last few weeks, today marks the most volatility that Bitcoin has experienced in some time. And the rest of the market is feeling it too.

Bitcoin Cash (BCH), EOS (EOS) and Litecoin are all currently down by roughly six to eight percent, according to data from Messari.

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Family Offices Finally Accept the Benefits of Investing in Bitcoin – Cointelegraph

There is a lot of chatter going on about the uncertainties of cryptocurrency and how an attempt to tame the raging seas of the crypto market could spell doom for investors. As expected, in the middle of this conversation is Bitcoin (BTC), whose popularity continues to grow in the investment world.

Although Bitcoins volatility is well-documented, this has not stopped investors from adopting cryptocurrencies as a way of effecting a diversified investment strategy. Interestingly, the volatility narrative is somewhat losing its potency as Bitcoin slowly establishes stability.

Hence, I will use this piece to analyze the growing affinity for digital assets and how Bitcoin is fast becoming a viable investment asset class for institutional investors and family offices.

The origin of Bitcoin might have caused many to doubt its efficacy. In a world grounded in a centralized culture, it is understandable that people would initially fight off an anomaly that could uproot the foundations of their belief system. At one point, people did not dare to imagine a world without a stratified institution made up of banks and governments that govern the dissemination of money and information. Now that decentralization is finding its way to even the most traditional industries, it is clear that crypto is here to stay.

Nonetheless, there remains an ounce of doubt surrounding the viability of Bitcoin as an asset class. Some believe that Bitcoin emerged out of nothing. Therefore, it is impossible that the digital asset would retain its value. However, from my recent analysis of the history of money and the various theorems that established the origin of money, it is evident that Bitcoin fulfills the core requirements that other forms of money have passed.

Interestingly, one could argue that the United States dollar, gold and other precious metals have no intrinsic worth market sentiments brought about their valuation.

Institutional investors are aware of the risks that come with allocating a large percentage of their funds to a particular asset or market indices. For one, the downturn of such a market or asset would have a crippling effect on their returns. The same is true for investors that allocate the majority of their portfolio to asset classes that have strong correlations to one another. Hence, adopting a strategy that allows the allocation of funds to different asset classes, with little or no correlation, is the appropriate solution. This is where Bitcoin excels.

VanEckpublished a study that highlighted some of the factors that aided Bitcoins ascendancy as a viable investment product. One of these factors is the digital assets correlation to major market indices. In the study, VanEck noted that Bitcoins apparent disparity from established and emerging markets makes it a suitable portfolio diversification option.

This argument holds after considering the correlation of Bitcoin to other markets from January 2012 to July 2019. While other markets had moderate correlations to one or two traditional asset classes, Bitcoin maintained a very weak correlation to all of the asset classes examined. In other words, Bitcoin could fit nicely into an investment portfolio and boost returns.

VanEcks study went further to prove Bitcoins eligibility as an investment option. This investigation entailed the assessment of the asymmetric return of portfolios allocated to varying percentages of equities, bonds and Bitcoin from January 2012 to July 2019. A portfolio with 58.5% of the fund distributed to equities, 38.5% to bonds and 0.5% to Bitcoin generated returns that surpassed that of a portfolio allocated solely to the S&P 500 by over 150% as of July 2019.

From the basic principle of supply and demand, a commodity tends to retain or increase its value when its supply does not match its demand. In other words, maintaining or increasing the demand for an asset while reducing its supply would eventually cause the price of such an asset to skyrocket. This phenomenon has played out throughout the history of Bitcoin. Bitcoins protocol automaticallyhalves its supply roughly every four years. It is also important to note that it is only possible to create new coins, or mine, a maximum of 21 million BTC, and a total of 18 million BTC has already been mined.

What all these facts and figures mean is that there is a possibility that the price of Bitcoin will continue to soar. And this might have spurred enthusiasts to predict ridiculous price possibilities. One popular crypto supporter in particularasserted that the next halving, scheduled for May 2020, could cause one Bitcoin to sell for $1 million.

Though this prediction sounds over the top, price history shows that the price of Bitcoin has always experienced a surge whenever the reward for finding new blocks undergoes a 50% cut. The last time this happened was in 2016, which led to the unprecedented bull run of 2017. Before this, a Bitcoin was selling for $657. Just over a year later, the price climbed to around $20,000 per coin. Without any doubt, the halving slated for the coming year will affect the price of Bitcoin. Although it is still unclear how much of an impact to expect, I bet that a majority of institutional investors will be closely watching the unfolding drama.

Developers are beginning to understand that sustained adoption will never come to fruition until they resolve the issues battling the efficacy of blockchains scalability and security. Hence, the development recorded in this space is nothing short of remarkable. For one, theLightning Network, designed as a sidechain to the Bitcoins blockchain, could improve scalability and reduce the cost and time for transacting. This, and more, are some of the reasons why the prospect of Bitcoins adoption is looking good.

For what its worth, the advantages of allocating a fraction of ones investment portfolio to Bitcoin trump the disadvantages.

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Constantin Kogan is a venture partner at BitBull Capital, a board member of ABOTMI and has been a cryptocurrency investor since 2012. He has over 10 years of experience in corporate leadership, technology and finance. He contributes to the digital asset space as well as the sharing and value economies.

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