Can the Quantum Blockchain share price surge in the long run?

Quantum Blockchain Technologies is proud of the expertise of its research team, but can it translate into a higher share price?

Quantum Blockchain Technologies Plc (LSE:QBT) recently filed a new patent application in the UK. This new patent involves the application of AI techniques to predict blockchain behaviour, allowing them to pre-compute a block before its actual computation takes place. This innovation could lead to 8% savings of the circuits on the ASIC chip and reduce energy consumption.

While the company is proud of the expertise of its research team, and they are happy about their leading position in the industry. Let’s explore the prospects of the Quantum Blockchain share price.

Key Points

• Quantum Blockchain Technologies Plc recently filed a new patent application in the UK.
• The main focus of the company is the development of BTC mining technology.
• Quantum technologies are fast evolving and bring both threats and opportunities related to digital trust.

What does Quantum Blockchain do?

Quantum Blockchain Technologies is focused on developing advanced disruptive proprietary mining technology, mainly for bitcoin (BTC) mining, but also applicable to other cryptocurrencies, based on SHA-256 proof-of-work-based blockchain.

The main focus of the company is the development of BTC mining technology. The blockchain company puts a significant emphasis on diversifying its research & development (R&D) approach. It is expected to yield potentially disruptive results for BTC mining. In addition, it’s expected to develop products and services potentially available quicker to market during the R&D process.

The bull case for the Quantum Blockchain share price

After dropping to the low in November 2022, the stock started recovering and went bullish. The stock climbed up to 2.25p and eventually closed at 1.4168p. To date, the stock has appreciated by 83%.

Blockchain is considered the trust infrastructure of tomorrow. This technology has seen an almost 200% year-over-year increase over the past three years¹. This indicates that blockchain may have promising growth potential as an increasingly viable digital trust solution but has not yet reached peak maturity. Additionally, while early in their digital trust patent innovation curve, quantum technologies could introduce new threats and quantum-based countermeasures.

The bear case for the Quantum Blockchain share price

The Quantum Blockchain share price has followed a bearish trend from the last quarter of 2021 to the third quarter of 2022.

Quantum technologies are fast evolving and bring both threats and opportunities related to digital trust. On the one hand, it unleashes exponentially higher computing power that enables applications previously unimaginable, but this computation power could also make today’s internet vulnerable to tomorrow’s quantum hackers. While it’s difficult to predict when such a scenario could unfold accurately, it’s important that leaders gain awareness and begin to prepare as early as possible.

Quantum Blockchain Share price prediction

Quantum Blockchain share price is currently trading at 1.417p. It is considered a risky short-term investment by analysts. The 12-month forecast shows a price prediction of 2.25p. However, there seems to be a high level of uncertainty surrounding this target, in my opinion. Therefore, I personally am not placing any weight on this factor when making an investment decision.

Should I buy Quantum Blockchain shares today?

Blockchain and quantum technologies are some of the solutions that can play a valuable role in the coming years. A robust blockchain-based solution could help easily verify the transaction details and establish fail-safe mechanisms within a smart contract.

However, this technology still needs widespread acceptance and usage to make it a viable stock investment. The future of this technology is promising, and buying today might lead to a multi-fold return in the future. However, I’m staying on the sidelines for this one until Quantum Blockchain shares have more time to prove themselves.

Article sources

1. Deloitte. Blockchain and quantum technologies: Driving the future of digital trust

Saima Naveed does not own shares in any of the companies mentioned. The Money Cog has no position in any of the companies mentioned. Views expressed on the companies and assets mentioned in this article are those of the writer and, therefore, may differ from the opinions of analysts in The Money Cog Premium services.