Quantum Leap: How Google's Willow Chip Could Redefine the Future of Finance
Dear Investors,
Welcome to this week’s edition of the Myth of Money. If you would like to keep in closer touch, please reach out on X below.
Financial markets closed the week on a mixed note as inflation data took center stage. November’s CPI held steady at 2.7%, largely in line with expectations, while the PPI rose 0.4%, exceeding forecasts, and US producer inflation surged 3%, marking its largest jump since February 2023. These signals of persistent inflationary pressures fueled speculation about the Fed’s next moves, keeping investors cautious. Equities fluctuated as bond yields ticked higher, while the dollar firmed against major currencies.
As markets react to inflation data and rising producer costs, Google's breakthrough in quantum computing with the Willow chip offers a glimpse into a future where such economic modeling and forecasting could become exponentially faster and more precise, reshaping how we understand and respond to macroeconomic trends.
Google’s Willow Superchip: A Quantum Leap Into the Future
This week, Google unveiled Willow, a groundbreaking quantum computing chip that signals a new era in computing power. Willow completed a test problem in less than five minutes—a problem that would take the fastest supercomputer on Earth a staggering 10 septillion years to solve. For context, that's longer than the universe has existed.
But this isn't just a flashy headline. Willow represents a fundamental breakthrough in quantum computing: for the first time, adding more qubits (the quantum equivalent of classical computer bits) actually reduced error rates. In quantum systems, more qubits traditionally mean more errors—a critical roadblock that has slowed quantum adoption. Solving this issue paves the way for scalable, practical quantum computing.
What Is Quantum Computing?
Quantum computing harnesses the quirks of quantum physics to perform calculations far beyond the capabilities of today’s classical computers. Instead of relying on binary bits that are either a 0 or a 1, quantum computers use qubits. Thanks to a principle called superposition, qubits can exist as both 0 and 1 simultaneously, exponentially increasing computational power.
Imagine trying to find the fastest route from point A to B on a map. A classical computer would calculate each possible path one at a time. A quantum computer, however, would evaluate all paths at once, finding the best solution almost instantaneously.
This capability could transform industries:
Healthcare: Faster drug discovery and personalized treatments.
Energy: Safer nuclear reactors and efficient clean energy solutions.
Finance: Better risk modeling and optimized portfolios.
AI: Exponentially faster testing and deployment of machine learning models.
With Willow’s breakthrough, these possibilities feel closer than ever.
What Does Willow Mean for Crypto?
Quantum computing isn’t just exciting—it’s also a little scary, especially for industries like cryptocurrency that rely on encryption. Modern cryptography is built on the difficulty of solving certain mathematical problems, something classical computers can’t easily crack. But a sufficiently powerful quantum computer could potentially break these encryptions in minutes.
For crypto investors, this raises real concerns. Bitcoin, for example, uses cryptographic protocols that could be vulnerable in a “post-quantum” world. Emin Gün Sirer, co-founder of Ava Labs, warns that older Bitcoin wallets using outdated encryption methods (like those associated with Bitcoin’s pseudonymous creator, Satoshi Nakamoto) could be at risk of exploitation.
However, there’s no need to panic just yet. Experts agree that the crypto community still has time—possibly years—to develop quantum-resistant encryption. Think of Willow as a wake-up call: the quantum future is coming faster than we thought, but there’s still time to prepare.
What’s Next?
Google’s Willow chip isn’t ready to power the world just yet. Quantum computers remain experimental, requiring environments near absolute zero and complex error correction systems to function properly. But Willow’s success shows that progress is accelerating.
Governments and corporations worldwide are pouring billions into quantum research. Companies like Microsoft, IBM, and Amazon are racing to develop commercial quantum systems, while startups are exploring new methods to stabilize qubits, such as using photons or even diamonds.
Experts predict meaningful quantum computing applications could be here within five years. The immediate focus will likely be on areas like drug research, climate modeling, and materials science. But as technology matures, the impact could extend to finance, logistics, national security, and beyond.
Why Not to Panic
Yes, the quantum future is disruptive—but it’s also manageable. Tech companies, governments, and even blockchain developers are already working on post-quantum solutions. Apple, for instance, announced efforts to “quantum-proof” its iMessage encryption earlier this year.
History tells us that major technological shifts—like the internet or AI—create short-term uncertainty but unlock long-term opportunity. Quantum computing is no different. The path forward will require innovation, collaboration, and vigilance, but it’s a path worth taking.
For now, think of Willow as a glimpse into what’s possible, not a reason to panic. As Google’s Quantum AI lab demonstrated, we’re still in the early stages of quantum’s journey. But with breakthroughs like Willow, that journey is moving faster than anyone expected.
The future, as they say, is quantum.
Worth a Listen 🎧
Listen to my interview with Paula Pant on the Afford Anything Podcast:
Top Takeaways:
Bitcoin is not just a digital currency; it represents a new form of digital property with intrinsic value due to its scarcity and decentralized nature.
Investing in cryptocurrencies requires a long-term perspective. It's essential to avoid getting swayed by market hype and focus on the fundamental value of the projects you're investing in.
The first rule of crypto investing is securing your assets. Use reliable wallets and exchanges, and always prioritize the safety of your investments.
This Week By the Numbers 📈
📈 Crypto and Financial Markets
Argentina and El Salvador collaborate on national crypto development plans
Vancouver aims to become North America’s top Bitcoin-friendly city
🏛️ Economic and Political News
Trump promises fast-tracking permits for $1B+ US investments
French Hill to lead pro-crypto House Financial Services Committee
Chinese yuan weakens on speculation over new currency policy
🤖 Tech and AI Developments
🏢 Business and Industry News
Top Stories 🗞️
Hezbollah chief says group lost its supply route through Syria
Hezbollah head Naim Qassem said on Saturday that the Lebanese armed group had lost its supply route through Syria, in his first comments since the toppling of President Bashar al-Assad nearly a week ago by a sweeping rebel offensive.
Under Assad, Iran-backed Hezbollah used Syria to bring in weapons and other military equipment from Iran, through Iraq and Syria and into Lebanon. But on Dec. 6, anti-Assad fighters seized the border with Iraq and cut off that route, and two days later, Islamist rebels captured the capital Damascus.
"Yes, Hezbollah has lost the military supply route through Syria at this stage, but this loss is a detail in the resistance's work," Qassem said in a televised speech on Saturday, without mentioning Assad by name.
"A new regime could come and this route could return to normal, and we could look for other ways," he added.
Hezbollah started intervening in Syria in 2013 to help Assad fight rebels seeking to topple him at that time. Last week, as rebels approached Damascus, the group sent supervising officers to oversee a withdrawal of its fighters there.
MicroStrategy secures Nasdaq-100 inclusion after bitcoin-fueled stock surge
MicroStrategy will be added to the tech-heavy Nasdaq-100 Index, the exchange operator said on Friday, following a meteoric surge in the shares of the bitcoin buyer.
The change comes into effect before the market opens on Dec. 23, Nasdaq said. Inclusion in the index typically boosts the stock's price, as exchange-traded funds looking to replicate the index's performance buy shares of the newly included firm.
Analysts have said MicroStrategy's decision to purchase bitcoin to protect the value of its reserve assets has enhanced the appeal of its stock, which tends to align with the performance of the cryptocurrency.
Bernstein analysts expect the market will likely set its sights on S&P 500 inclusion for MicroStrategy in 2025 following the Nasdaq-100 inclusion.
BlackRock recommends bitcoin portfolio weighting of up to 2% for interested investors
BlackRock recommends that interested investors consider allocating as much as 2% of their portfolio to bitcoin, the world's largest cryptocurrency, the giant asset manager said in a report on Thursday.
"We see a case for investors with suitable governance and risk tolerance to include bitcoin in a multi-asset portfolio," a team of four senior BlackRock executives including Samara Cohen, chief investment officer of ETFs and Paul Henderson, senior portfolio strategist of BlackRock Investment Institute, said in the short report.
The arguments in favor of those with an interest in bitcoin to include it in an asset allocation model include the fact that it is likely to be less correlated with other major asset classes and could offer a diversified source of return.
BlackRock said it based its allocation recommendation on gauging how much the addition of bitcoin to a portfolio would raise its overall risk. While the report's authors said that bitcoin is a unique asset, it is in some ways similar to the group of giant technology companies, including Nvidia and Microsoft, that have come to be known as the Magnificent 7.
Satoshi era Bitcoin buyer jailed for two years in first U.S. crypto tax evasion sentencing
A Satoshi era Bitcoin investor was sentenced to two years in prison, after he underreported the capital gains he earned from selling $3.7 million worth of BTC. This marks the conclusion of the first ever U.S. criminal tax evasion prosecution centered solely on cryptocurrency.
Frank Richard Ahlgren III bought Bitcoin in 2011, the last year of recorded contact with Bitcoin creator Satoshi Nakamoto. Ahlgren then sold his funds between 2017 to 2019 for $4.35 million, but misrepresented these figures to his accountant and in his tax filings. The total tax loss, calculated by the U.S. Department of Justice, is over $1 million. With his crypto fortunes, the Texas man bought a house.
“Ahlgren will serve time because he believed his cryptocurrency transactions were untraceable.” Acting Special Agent in Charge of IRS-Criminal Investigation Houston Field Office, Lucy Tan, said, “This case demonstrates that no one is above the law. My team at IRS Criminal Investigation has the expertise and tools to track financial activity, whether it involves dollars, pesos, or cryptocurrency.”
Donald Trump is TIME's 2024 Person of the Year
If America was craving change, it is about to see how much Trump can deliver. He ran on a strongman vision, proposing to deport migrants by the millions, dismantle parts of the federal government, seek revenge against his political adversaries, and dismantle institutions that millions of people see as censorious and corrupt. “He understands the cultural zeitgeists,” says his 2016 campaign manager Kellyanne Conway, who remains a close adviser. “Donald Trump is a complicated person with simple ideas, and way too many politicians are the exact opposite.”
Trump also promises to attack the sources abroad that he blames for the country’s malaise: economic interdependence, transnational criminals, traditional allies he sees as free riders on America’s long-running global beneficence. He believes he has tools to fight back: punitive tariffs, bare-knuckle negotiations, and threats to withdraw U.S. military, humanitarian, and economic support. Willing to upend the nation’s postwar role as a bulwark against authoritarianism, he promises to usher in a foreign policy rooted in “America First” transactionalism.
Many of Trump’s answers to the nation’s problems, including his immigration and trade policies, rely on successful diplomacy. “America First” may be both a campaign slogan and a governing North Star, but ending forever wars and boosting U.S. economic advantage requires working with others.
Moonwalker Capital - Accepting New Capital
Moonwalker Capital is a multi-asset investment manager, focused on the future of digital assets and emerging fourth-generation technologies. We are committed to delivering outstanding returns to our stakeholders and a select group of investors.
Recent Returns:
September 2024: 12.58%
October 2024: 6.91%
November 2024: 55.83%
Thank you for reading this week’s edition of the Myth of Money.🚀
Were you forwarded this email? Subscribe below.
Until next week,
Tatiana Koffman & Katherine MacLellan
About the Author: Tatiana Koffman
Hi there and thanks for reading! If you stumble upon my newsletter, you will notice that I write about money, economics, and technology. I hold a JD/MBA and spent my career in Capital Markets working across Mergers & Acquisitions, Derivatives, Venture Capital, and Cryptocurrencies. I write to make financial topics more accessible and create equal opportunity for the next generation of investors. Currently working as a proud General Partner at Moonwalker Capital.
(More about me 👉 here).
About the Author: Katherine MacLellan
Katherine holds an MA (Hons) in Economics and International Relations from the University of St. Andrews, and a JD from Osgoode Hall. She has been thinking and writing about Bitcoin and blockchain technology since 2012.