The internet may have been around for a while now, but recent shifts suggest that the digital world is going to have considerably more impact on the way we manage our personal finances as well as the ways that banks and the stock exchanges around the world work. Information is key to making any investment and since the arrival of the internet, this information has become easier to access and faster to trawl using specialized algorithms.
In the western world, most people have access to the internet almost constantly via smartphones. These gadgets, which have done more to change our lives than we can bare think about right now, mean that you can check your bank balance, watch the fluctuations in the stock market and even make investments on the move.
The world seems to be constantly speeding up and as things move faster and faster, the way our finances work is catching up, and pulling us ahead.
Investment Management Apps
Investment management apps are relatively new players in the financial world and can be used by businesses looking to build an investment portfolio as well as individuals. Many of these apps started by offering advice from people, but as AI and algorithms are developed, they are increasingly offering automated advice based upon a computer model. To read more about these incredible apps, have a look at Investormint, which regularly runs articles comparing different apps and analyzing the pros and cons for different situations.
It might sound scary that your finances could soon be in the hands of a bot making decisions based on algorithms, but so far, this is beginning to look like a possible future. And, if a bot is more capable of reading financial fluctuations and making smart decisions than you are, it could be a good solution.
Online Currencies
When Bitcoin arrived in 2009, it was instantly recognized as a game changer. This online currency isn’t regulated by a nation or a bank, but an algorithm. It is underpinned by blockchain, a genius idea that provides an incorruptible digital ledger of all transactions. This ledger is not stored in a single location and is entirely public which means that it cannot be hacked but is accessible to everyone.
Since Bitcoin arrived, there are now over 700 different types of cryptocurrencies such as Ethereum and Litecoin. Over the years, these currencies are jostling for place and even day to day, they all shift in value. However, as none of these currencies are regulated, the markets are incredibly volatile. Sudden peaks and drops in the market are not uncommon, making any investment into any cryptocurrency a risky one. However, it is entirely possible that this market will gradually settle a bit more.
It is easy to freak out about the amount that technology is now taking over in our lives. We have smart homes, smart furniture, smart bots – it feels like the smart world is taking over. Finance is just the next field for the bots to invade and optimize on our behalf. Sure it feels weird, but if these systems work, who are we to question them?
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