Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 347

Quantum computing would be a world-changing technological leap

Paul Benioff (born 1930) is a US physicist who in 1980 imagined the feats computing might achieve if it could harness quantum mechanics, where the word quantum refers to the tiniest amount of something needed to interact with something else – it’s basically the world of atoms and sub-atomic particles. Benioff’s imagination helped give rise to the phrase ‘quantum computing’, a term that heralds how the storage and manipulation of information at the sub-atomic level would usher in computing feats far beyond those of ‘classical’ computers.

Benioff was coincidently thinking about a vague concept being outlined by Russian mathematician Yuri Manin (born 1937). Since then, many others have promoted the potential of computing grounded in the concept of ‘superposition,’ when matter can be in different states at the same time.

Computational power of the qubit

Quantum computing is built on manipulating the superposition of the qubit, the name of its computational unit. Qubits are said to be in the ‘basis states’ of 0 or 1 at the same time when in superposition, whereas a computational unit in classical computing can only be 0 or 1. This qubit characteristic, on top of the ability of qubits to engage with qubits that are not physically connected (a characteristic known as entanglement), is what proponents say gives quantum computers the theoretical ability to calculate millions of possibilities in seconds, something far beyond the power of the transistors powering classical computers.

In 2012, US physicist and academic John Preskill (born 1953) devised the term ‘quantum supremacy’ to describe how quantum machines one day could make classical computers look archaic.

Research and developments

In October last year, a long-awaited world-first arrived. NASA and Google claimed to have attained quantum supremacy when they computed something not 'terribly useful' but did 'in seconds what would have taken even the largest and most advanced supercomputers thousands of years'.

The pair were modest that their computation on a 53-qubit machine meant they were only able 'to do one thing faster, not everything faster'. Yet IBM peers doused their claim as 'grandiosity' anyway, saying one of IBM’s supercomputers could have done the same task in 2½ days.

Nonetheless, most experts agreed the world had edged closer to the transformative technology. Hundreds of millions of dollars are pouring into research because advocates claim quantum computing promises simulations, searches, encryptions and optimisations that will lead to advancements in artificial intelligence, communications, encryption, finance, medicine, space exploration, even traffic flows.

Stumbling blocks

No one questions that practical quantum computing could change the world. But the hurdles are formidable to accomplish a leap built on finicky qubits in superposition, entanglement and ‘error correction’ - the term for overcoming ‘decoherence’ caused by derailed qubits that can’t be identified as out of whack when they are in superposition.

There’s no knowing when, or if, a concept reliant on mastering so many tricky variables will emerge. Small breakthroughs will occur, but the big breakthrough seems some way off.

To be clear, quantum computing is expected to be designed to work alongside classical computers, not replace them.

Quantum computers are large machines that require their qubits to be kept near absolute zero (-273C degrees) in temperature, so don’t expect them in your smartphones or laptops.

And rather than the large number of relatively simple calculations done by classical computers, quantum computers are only suited to a limited number of highly complex problems with many interacting variables.

Quantum computing would come with drawbacks too. The most flagged disadvantage are the warnings that a quantum computer could quickly crack the encryption that protects classical computers.

Another concern is that quantum computing’s potential would add to global tensions if one superpower gains an edge. The same applies in the commercial world if one company dominates.

Like artificial intelligence, quantum computing has had its ‘winters’ – when its challenges smothered the excitement, and research dropped off.

Dreaming of a new tech era

That points to the biggest qualification about today’s optimism around quantum computing: it might take a long time to get beyond today’s rudimentary levels where quantum machines are no more powerful than classical supercomputers and can’t do practical things.

But if quantum computing becomes mainstream, a new technological era would have started.

 

Michael Collins is an Investment Specialist at Magellan Asset Management, a sponsor of Firstlinks. This article is for general information purposes only, not investment advice. For the full version of this article and to view sources, go to: https://www.magellangroup.com.au/insights/.

For more articles and papers from Magellan, please click here.

 

  •   4 March 2020
  • 1
  •      
  •   
1 Comments
Mace Ramsay
March 04, 2020

Look at what Archer is trying to do with Quantum computing

 

Leave a Comment:

RELATED ARTICLES

Policymakers fear cutting stimulus can lead to recession

AI economic scenarios: revolutionary growth, or recessionary bubble?

I called inflation's rise and fall and here's what's next

banner

Most viewed in recent weeks

Noel Whittaker’s take on the budget

Marketed as a fix for inequality and housing affordability, the latest budget instead delivers a tangle of tax changes that leave everyday Australians worse off.

Australia has no death duties. Technically.

Australia may not levy formal death duties, but a growing web of tax measures is quietly shaping what wealth passes between generations. Now, the 2026 budget adds another layer.

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Welcome to Firstlinks Edition 662 with weekend update

The debate over the budget is increasingly shaped by frustration and perceptions of unfairness, rather than clear-eyed assessment of policy outcomes.

How inflation is quietly moving the goalposts on retirement

Inflation doesn’t just raise today’s bills - it quietly increases the amount needed to retire, while simultaneously making it harder to save. Three steps to take before June 30th to improve retirement outcomes.

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

Latest Updates

SMSF strategies

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

Planning

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

Taxation

Income tax and bracket creep

Examining how five "tax cuts" stack up against bracket creep. Why offsets and incremental changes may do little to ease rising average tax burdens, compared to structural reform through indexation over time.  

Exchange traded products

The limits of a quality investing approach in Australia

Quality strategies shine globally, but Australia's concentrated market tells a different story. Limited diversification and sector dominance can constrain the defensive outcomes investors have seen in broader markets.

Investment strategies

Balancing opportunity and complexity

As private markets expand, investors face a growing mix of structures, a stabilising private equity cycle and uneven AI disruption. Fresh questions are being raised about where the real opportunities now sit.

Investment strategies

Why strong returns matter as much as generosity

As EOFY approaches, structured giving offers a tax-effective way to support charities, while allowing donations to grow over time and play a longer-term role in family wealth and legacy planning outcomes.

Investment strategies

The most important investment decision you’ll ever make

Stock picking often gets the spotlight, but research shows asset allocation explains the vast majority of long‑term returns. Understanding your mix of growth and defensive assets is the real key to investment success.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.