There is an economic moment where digital transformation is paramount.

Citizens need a digital economy that can be accessed from anywhere and anytime, via home or online. The combination of IoT and AI coupled with blockchain lies at the core of this modern digital economy. As the global financial system supports digitalization of value, so does the financial sector too. A reduced transaction fee for high volume transactions, faster transaction confirmations, enhanced security, and streamlined payments system all make virtual currency safer than cash. Moreover, with the exponential growth in digitalization of information and communication technologies (DICTs), more individuals are connecting to online banking services every day to make online payments as convenient as possible. These people shop, check e-mail, phone calls etc., without leaving their homes or using public transportation because banks charge high transaction fees for withdrawals outside office hours. The average annual global bitcoin exchange price is $850 per coin in today’s environment. Cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) have grown rapidly in recent years to become a global reserve currency that is attracting new users daily. However, they offer very little if any return on investment compared to fiat currencies like dollars. Inflation- sensitive businesses will likely choose other assets rather than adopting digital currencies as their fallback option going forward.

In a word: inflation. The process of increasing the amount of money in the system over time due to inherit and domestic demand. It is the result of money supply growth and is most likely the root cause behind many social problems such as high housing costs, extreme inflation, poor infrastructure, inadequate food and energy supplies, limited access to health care, and lack of secure and ordinate employment.

Current inflation is 8%. The federal inflation rate is 7%. According to the United States Federal Reserve, inflation is expected to rise to 12% in 2020. In other words, more people will start to purchase food and other items of critical importance to their survival. At the same time, the number of people who are able to rent or purchase a home will rise. More people are also expected to travel and make more use of public transportation.

It is important to understand why inflation is so important. Given the fact that it is a very sensitive issue for many people, we need to understand the factors that are driving inflation and then take some steps to reduce or avoid its unfavorable effects in the future. People expect a higher return on their investment when buying expensive goods and services like a good education or a house. They also expect a higher price for their money when investing in cryptocurrencies like Bitcoin (BTC). In other words, people are attracted to risk with cryptocurrencies as they know they have good potential returns compared to other investments like stocks and real estate.

Digital transformation is transforming the financial sector in the 21st century. More and more people are using digital assets as the new medium of exchange and payment mechanism. These digital assets have come with rich benefits such as increased security, reduced risk, and reduced volatility. However, the overall digital transformation environment is likely to be volatile, with many new technologies and businesses emerging as opportunities. While most businesses will see significant growth in the short-term, some may also see significant long-term benefits from the adoption of blockchain-based technology in payments, insurance, and other areas. The only way to avoid the worst scenario is to implement and maintain high-quality control procedures for all digital assets. This article describes the most important factors driving inflation and how to fight it. It also shows how cryptocurrencies may fail in the near future and what could become the new reserve currency.

Support the writer here or join Medium here.

Photo by Pascal Habermann on Unsplash

There is an economic moment where digital transformation is paramount.

Citizens need a digital economy that can be accessed from anywhere and anytime, via home or online. The combination of IoT and AI coupled with blockchain lies at the core of this modern digital economy. As the global financial system supports digitalization of value, so does the financial sector too. A reduced transaction fee for high volume transactions, faster transaction confirmations, enhanced security, and streamlined payments system all make virtual currency safer than cash. Moreover, with the exponential growth in digitalization of information and communication technologies (DICTs), more individuals are connecting to online banking services every day to make online payments as convenient as possible. These people shop, check e-mail, phone calls etc., without leaving their homes or using public transportation because banks charge high transaction fees for withdrawals outside office hours. The average annual global bitcoin exchange price is $850 per coin in today’s environment. Cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) have grown rapidly in recent years to become a global reserve currency that is attracting new users daily. However, they offer very little if any return on investment compared to fiat currencies like dollars. Inflation- sensitive businesses will likely choose other assets rather than adopting digital currencies as their fallback option going forward.

In a word: inflation. The process of increasing the amount of money in the system over time due to inherit and domestic demand. It is the result of money supply growth and is most likely the root cause behind many social problems such as high housing costs, extreme inflation, poor infrastructure, inadequate food and energy supplies, limited access to health care, and lack of secure and ordinate employment.

Current inflation is 8%. The federal inflation rate is 7%. According to the United States Federal Reserve, inflation is expected to rise to 12% in 2020. In other words, more people will start to purchase food and other items of critical importance to their survival. At the same time, the number of people who are able to rent or purchase a home will rise. More people are also expected to travel and make more use of public transportation.

It is important to understand why inflation is so important. Given the fact that it is a very sensitive issue for many people, we need to understand the factors that are driving inflation and then take some steps to reduce or avoid its unfavorable effects in the future. People expect a higher return on their investment when buying expensive goods and services like a good education or a house. They also expect a higher price for their money when investing in cryptocurrencies like Bitcoin (BTC). In other words, people are attracted to risk with cryptocurrencies as they know they have good potential returns compared to other investments like stocks and real estate.

Digital transformation is transforming the financial sector in the 21st century. More and more people are using digital assets as the new medium of exchange and payment mechanism. These digital assets have come with rich benefits such as increased security, reduced risk, and reduced volatility. However, the overall digital transformation environment is likely to be volatile, with many new technologies and businesses emerging as opportunities. While most businesses will see significant growth in the short-term, some may also see significant long-term benefits from the adoption of blockchain-based technology in payments, insurance, and other areas. The only way to avoid the worst scenario is to implement and maintain high-quality control procedures for all digital assets. This article describes the most important factors driving inflation and how to fight it. It also shows how cryptocurrencies may fail in the near future and what could become the new reserve currency.

Support the writer here or join Medium here.

Photo by Pascal Habermann on Unsplash