Financial

Security

Cyberterrorism

Cybercrime

Cryptocurrency

The ability of fraudsters, organised crime, and terrorists to utilise capital resources in order to achieve their malevolent ends with significantly lower chances of detection/prevention is of course an extra thorn in the side of law enforcement and security services charged with tackling these social ills | coindesk.com

 

Stability

Interconnectedness

The Digital ‘Butterfly Effect’

In a more highly interconnected world, in which instantaneous, transnational communications are now the norm, the ‘ripple effect’ of market news anywhere in the world can be felt, fairly immediately, right around the globe | motherjones.com

This renders relevant markets, and regional/global economic systems, more vulnerable to swifter/potentially greater volatility. When you add automated trading algorithms into the mix, the possibilities for deeply downward spirals in trading are almost endless | bankingtech.com

Intra-sectoral tech-reliance

Individual industries are evermore reliant on the digital technologies that serve them, and evermore vulnerable to any related problems with the operation of said technology. Sadly this includes wireless tech, which will mean massive transition costs when, at last, the general public wake up to the biological harm being done to all living things by electrosmog and demand change; the associated sudden need for systemic overhauls across multiple sectors will likely crash whole economic systems

Inter-sectoral exposure

Historically, the fortunes of one economic sector have been somewhat connected to those of others, but never before to the extent that they are today

Technology driven sectorial intercommunication and reliance (pertaining to logistics and highly leveraged/tech dependant finance in particular), now mean markedly raised systemic risk: the fate of one is, broadly speaking, increasingly shared by all

Crisis in one sector could spell disaster for entire economy, or regional/global economic systems, including, tragically, supplies of commodities needed to fulfil mankind’s ‘basic needs’ | fastcompany.com

Trading

Transaction costs vs. volume

Technological advancement has led to reduced transaction costs in trading and hence the potential for a vastly increased volume of trades made on a purely speculative basis. This has implications for market volatility | semanticscholar.org

Transaction speed vs. stochastics

Improvements in the speed at, and automation with, which transactions can be executed and logged also mean that, in the age of thousandths of a second trading platforms, markets are more susceptible to instantaneous changeability | telegraph.co.uk

Dot com Speculation

The love affair that markets have with technology got out of control around the turn of the millennium, leading to the Dot Com bubble/bust

Speculative capital must flow somewhere and technology is, according to conventional economic theory, the one remaining driver of growth in a post-industrial economy, ceteris paribus

That trillions of dollars are being poured onto the fire of wireless technology and associated systems – inherently doomed due to the latent public health pandemic they have given rise to – is hardly an encouraging prospect economically speaking | zdnet.com

Automation

Now add algorithmic systems and AI into the mix, and not just at the level of trade-by-trade execution but also taking in strategy and compliance. Just imagine the potential for things to quickly get out of hand. This is the future of finance, and there is a school of thought that, far from fearing the coming chaos, the over-leveraged super-elite rather welcome it

 


Disclaimer | The author is not responsible for any decisions individuals make directly or indirectly in relation to site content. This site does not offer specific financial advice to individuals and the content thereon is not intended to replace the advice of any financial advisory or legal professional. Visitors are encouraged to consider carefully the insights and advice that they come across via this, or any other, web-resource carefully and with a suitably qualified professional before taking any related action

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s