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  |

 

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  |

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 |

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 of course includes wireless tech, which will mean massive transformative costs when, at last, the general public wake up to the biological harm being done to them, and to flora and fauna, by electrosmog, and demand change, leading to the need for systemic overhauls across multiple sectors |

Inter-sectoral exposure

Historically, the fortunes of one sector of the economy have been somewhat interlinked with those of other sectors, but never before to the extent that they are today |

Technology driven sectorial intercommunication (particularly through highly leveraged/tech dependant finance), now means raised systemic risk as the fate of one is, broadly speaking, increasingly shared by all |

A blip, initially technology linked or otherwise, 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’ |

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 |

Transaction speed vs. stochastics

Improvements in the speed at 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 |

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 an 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 are giving rise to – is hardly an encouraging prospect economically speaking, in the above context |

 


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

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