Boaz Shoshan – Exponential Investor (United Kingdom) –
Conflict is inevitable, whatever you may hear to the contrary. It is simply the state of the human condition.
“It’s [current year], for heaven’s sake!” has been used as a protest against actions taken with this reality in mind, as though the number of years since Jesus was born would alter our propensity for killing each other.
This chronological snobbery, as CS Lewis cogently put, is expressed more and more often these days, particularly by younger generations who believe that their presence in the gene pool will somehow alter the inevitability of conflict built into the human condition.
For as long as humanity remains on Earth, there will be conflict. It is the shadow of our species, shrinking and growing over time, but never vanishing. Wherever humanity ventures, the dogs of war will follow – cyberspace is no exception.
In this issue of Exponential Investor, I’d like to share a snippet from Sam Volkering’s bold newsletter, Revolutionary Tech Investor, addressing the digital war already being waged around the globe. Battles between sovereign governments and intelligence agencies for data and digital dominance rage within silent servers and across fibre optic cable.
War already here?
Just over a fortnight ago Las Vegas hosted the 20th and 25th year of the Black Hat and Defcon conventions, respectively.
These two conferences display the best and most petrifying in the world of information security (InfoSec). Each year, people come from around the world to share their insights and latest developments for the InfoSec industry.
We attended Black Hat in Las Vegas in 2015 and were blown away by the capabilities of the companies and hackers attending. And while we didn’t attend the Vegas conference this year, we are ing to Black Hat Europe in London in early December.
We think these are two of the best tech conferences in the world. But they can be a little provocative. Particularly when you see two hackers take control of a car from a remote location!
It’s a frightening reality that sophisticated online agents can attack virtually any connected digital device or system on Earth. But in a future full of connected, self-driving cars we can’t emphasise the importance of unbreakable cyber defence.
Aside from the self-driving car trend there are three other key focuses for the defence of our future connected world. These are: the Internet of Things (IoT), artificial intelligence (AI) and geopolitical hacking (like vote rigging).
AI is the one that people should be worried about. In our view it represents massive opportunity for improving the world, and also for investment. This is why we’re very bullish long term on our “true” AI stock.
But AI is also a prime target for cyber-attacks.
There’s a very real threat of AI being weaponised. In fact, 62% of security experts believe it will happen in the next year.
All signs point towards conventional war with North Korea. But make no mistake, we’re already at war – cyber war.
And the biggest players in this war are governments. They play dumb to it for their public image. But governments are constantly attacking other nation states.
And they don’t give two hoots about your privacy, safety or security. They are concerned with saving their own skin. And they’ll put your liberties at threat to achieve it.
If we can’t rely on the government to protect us, and the development of our world, then we can only turn to the private sector.
While we have no doubt that the global environment will support further rises in crypto we also see there being a huge opportunity in cyber defence companies. It’s something I’ve been analysing for a number of years and there are a number of stocks I’m currently running the ruler over to potentially bring into our portfolio.
That means over the next couple of months expect to see cyber defence stocks that all leverage off the inevitability of conflict enter the portfolio. And perhaps more importantly, there’s a new crypto recommendation coming next week – make sure you don’t miss out on our next huge crypto tip!
It’s not the happiest of things to think about, a global digital warzone. But with the right analysis, there’s a fortune to be made for the shrewd investor.
Have a great weekend!
Until next time,