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Tag: Creative Destruction

  • Digital Dribs & DApps!

    Digital Dribs & DApps!

    We have barely scratched the surface with the Internet (from the early eighties) and it is already seemingly being threatened with the competition. A possible replacement by a new phenomenon.

    Well, for lack of a better word, “replaced” has connotations of a dying Internet. This is far from accurate. This new phenomenon – fostered by blockchain technology, will change the way we use and consume the Internet as a service.

    So, what is this new Internet-like system creating waves online? And why is it making online marketers quiver at the prospect of them losing out on the exponential revenues they have previously enjoyed?


    Well, without hyping it up any further, it is called Distributed Applications or ‘DApps’ for short.

    A brief history of Apps

    Before we delve further into its meaning and use in the cyber world, perhaps some background context is required.


    The way we use online or mobile applications software or “Apps” has changed how we consume products and services online. Companies jumped onto the bandwagon when they discovered that we mostly use Smartphones for the Internet.

    App developers were then subsequently sought after to create mobile Apps for practically anything.  What started as something mainly for gamers moved quickly onto applications for practically any commercial activity.


    We now use Apps for our shopping; fitness; traveling; online bookings and banking. Developers now create customized software to help us with practically, anything.


    In addition, we now have App stores for every significant tech provider – Microsoft, Google, and Apple to mention a few. This has naturally fattened the pockets of software companies and created an additional stream of income for them.

    The ‘catch’ for using mobile apps is that even though it costs you nothing to download, using them still requires you to register with your personal details. You can also do this by linkingyour existing social media accounts.

    The benefit to App providers

    These Apps, which are integrated with social media services, create a data goldmine for marketers to study and track browsing habits. Through them, marketers can gain valuable insights into your interests and then customize their products/services to sell to you.

    The impetus behind a distributed application system is that it serves to distribute plow some of the wealth garnered from your data via application providers back to you.

    Data mining has become more lucrative and accessible because of Artificial Intelligence (AI) and Machine Learning. Do you ever notice how after browsing online or having a conversation or a chat application like WhatsApp or Facebook Messenger? You go online later, and you see Ads displaying the items you discussed? Creepy isn’t it? Well, that is the future of Web 4.0 for you!

    Staying ‘woke’

    Luckily for us, there is a school of knowledgeable and security-conscious programmers who are not ‘giving in’. They help us understand how the Internet has become a cesspool for marketers to harvest our data. Social media platforms, search engine providers, and mobile application providers facilitate them immensely with this.

    Image Courtesy of blockgeeks

    Imagine getting paid to surf the web for hours. The way you get paid for taking on a survey, partaking in a social experiment, donating an organ or sperm?


    This is the way distributed apps are touted to work. They reward you for the use of specific applications (in a peer-to-peer review setting) with cashable tokens. Seems only fair right?


    Now you can imagine how companies like Cambridge Analytica would react to having to pay you for their use of your data. They would surely be reluctant and that’s why they preferred to work clandestinely. But if they could pay companies like Facebook for the use of data, why not pay us directly?

    Early adoption

    Joining the ‘DApps revolution’ is a no-brainer. Those at the forefront of building and supporting DApps will end up with a more substantial chunk of the market.

    DApps primarily provide you with the use of payment systems. These are specifically known as Smart Contracts and Proof of Work systems.


    There are currently also web-browsers (built as DApps on blockchain platforms such as Ethereum or EOS) that will reward you for merely using their DApps.


    For instance, you are rewarded in cashable tokens to surf the net over applications like Google Chrome, or Mozilla Firefox.


    It is only a matter of time that this form of Internet-browsing and use of applications becomes the norm.


    The Internet revolutionized the way we communicate, socialize, learn, shop, and do business online. DApps however, will determine the way you get compensated for doing the things you love to do online.

  • For investment gains or for purpose?

    For investment gains or for purpose?

    As much as institutions, risk-averse, or simply skeptical people have downplayed the new digital currency revolution. It still, a decade after coming to public light, remains resilient.

    Bitcoin now gets a regular mention in daily news and stock market reports. It is being traded by several established investors and even included by fund managers as high-risk portfolio instruments.

    We all by now, have heard the rhetoric of high volatility and use for criminal activity when it comes to Bitcoin and its crypto-family.

    Billionaires Warren Buffet and Bill Gates also weighed into this by publicly lambasting Bitcoin. Buffet equated cryptocurrency to rat poison 🙂

    Be it may, digital currency, however, does have some unbeatable benefits and functions you cannot ignore.

    Financial emancipation

    Bitcoin and ‘altcoin’ investing have created a new wave of financial investors.

    These include retired bankers, ‘millennials’ – who instinctively jump on-board a new discovery that has creative destruction-like tendencies. You also have the plumber, bartender, or ‘average man on the street’ looking to change their lifestyles instantaneously.

    Based on their phenomenal returns, many people have taken to social media (via groups, profiles, and communities) to share their success stories. But this is also a reason to for you to heed caution when you take counsel from anyone claiming to be an expert in cryptocurrency investment.

    Volatility is not new to trading – and especially not with Crypto trading. It is constantly on a rollercoaster ride making it hard for even seasoned trading experts to predict movements with traditional market analysis tools.

    Money transfer

    We all have undergone the painful stress of waiting for funds to clear so your rent gets paid or waiting endlessly to receive money from abroad.

    With cryptocurrency, the aim is to be not only the most secure form of funds transfer – but the fastest.

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    Converting cryptocurrency to fiat money, however, remains a bottleneck. It still needs institutions to adopt or directly accept payments in cryptocurrency to avoid you going through another step in order to transact.

    Cryptocurrencies still cut down transfer time significantly compared to traditional electronic fund transfers of fiat money.

    Some well-established companies already use Cryptocurrencies like Bitcoin, and Litecoin for fund transfers, or even direct exchange for services.

    Cost savings

    We cannot ignore the reduced costs associated with dealing with money you have (hopefully) earned from hard work.

    Even inheritances are gained because of the toils of the giver’s hard work. So, it wouldn’t be fair for a group of a few companies headed by executives to siphon it from you while claiming to ‘provide you with a service’.

    We all pay for Internet use (and the security software associated), for smartphones and computers.

    We, therefore, have the technology to make transactions ourselves without having to rely on others to charge us for things we can do ourselves.

    The financial institutions have long preyed on your ignorance, obedience, and unquestioning trust. This, while they brazenly burn cash dabbling in equally questionable high-risk investments like derivatives and futures.

    Use cases

    Cryptocurrencies have nevertheless, got us thinking about making profits, the tax implications, and anything financial for that matter!

    A recent development called Hodl Waves attempts to track and predict Bitcoin movements via complex usage history. It basically compares behavioural patterns of what you do when you have coins and when you choose to reinvest them.

    N26 Bank

    Blockchain technology has also spurred a new path of careers and industries. More companies globally are looking to acquire lucrative Crypto-exchange licenses to operate.

    These cryptocurrency exchanges require people to service clients in various areas. They will require employees as any company would.

    Governments too will benefit from their operations. While there are still discrepancies in most countries about how to tax you, authorities can get a lion’s share from directly taxing exchanges.

    A new wave arises

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    It is only a matter a time before the banking institutions and big companies get on board to benefit from the high-level encryption and speed provided by digital currency.

    To conclude, the ‘wait and see’ mantra is all that we can exercise when predicting the future of digital currency.

    There are, however, concerns on how secure the encryption can remain with the advent of quantum computing.  This ground-breaking tech can make calculations at millions of speeds faster and thus able to crack the toughest data encryption.

    Some form of regulation would be required in some form to keep Crypto prices stable.
  • Out with the old school…

    Out with the old school…

    Creative destruction has become our new favourite buzzword. It also aptly describes this new wave or phenomenon of Crypto-mania driven by the blockchain and its shining star – the Bitcoin.

    Suddenly, people who normally would not bat an eye at trading are now asking how to invest in Crypto.

    Bitcoin

    We must note that anything that goes up very abruptly and abnormally – eventually comes tumbling down. The same way the big dot.com bubble burst and left many in dire straits after they over-indulged in overvalued tech companies.

    Turbulent history

    Bitcoin will eventually find its peak and there will be a mass sell-out and a ‘crash’ at some point.

    We even had the likes of an ironical skeptic – the dubious Ponzi-scammer dubbed ‘the Wolf of Wall Street’ Joel Belmont. He attempted to pre-empt a crash of Bitcoin.

    The funny thing is, however, most of the critics are people who have not invested themselves. Perhaps they suffer from a case of ‘sour grapes’ or they simply don’t understand how it works to even get involved.

    Doubt is prompted by fear of an unknown. Most investors themselves don’t understand the complex algorithms that went into designing the blockchain. However, it is proving to be resilient and gaining intrinsic value by the day.

    A new industry borne

    Bitcoin (at the time of writing), which was hovering around $17000 after breaking its latest resistance level, and poised to reach the $20000-mark.

    Creative destruction does not result in the reinventing of the wheel. It does, however, make the previous version look ancient very quickly. So while Bitcoins may not even last long, it has brought about its add-ons or spill-over effects.

    There are now hundreds of cryptocurrencies. While not all and most will not experience huge price surges like that of Bitcoin, Ethereum, or recently Dash, they are still in circulation.

    One of the spill-over effect includes the creation of jobs for new entrepreneurs, gamers, and developers across the globe.

    Though it might be too late for investors to delve into the above-mentioned ‘big boys of crypto’, institutions are constantly developing blockchain solutions.

    The fact of the matter is that the use and process of a blockchain makes sense and will, and is in the process of removing the old currency system.


    Now, this may take a while before it completely phases out fiat money. This will also hopefully, much to the delight of governments and fiscal authorities, help eradicate the scourge of counterfeiting. 

    Applications of blockchain

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    Think about the big picture, the blockchain technology will allow you or any institution smart enough to copy or modify a part of the anonymously written code. Blockchain is open-source, so anyone smart enough can create their own.


    We can now have Crypto for shopping, for buying cars; getting your salary paid by a multi-national company irrespective of where you are based; or paying for using Internet services (IoT).


    The latter already exists and is called IOTA – read more about it on the resources page.


    This technology can enable one to find creative ways to monetize a cryptocurrency to serve any purpose. This while providing a secure and lightning-quick means to transfer funds.


    Litecoin and Dash boast amazing speeds of under 10 seconds to complete international money transfers.


    It would be interesting to observe any bank try and beat that without charging an arm and leg for that type of service!

    The motor industry

    The critics, who thought Elon Musk was crazy for inventing electrically powered battery motors to run engines and now trucks – are now eating their shorts.

    Not only did Tesla´s market capitalization beat that of Ford and recently BMW, but it also outperformed petro/diesel-powered vehicle companies. Outdoing them in speed and performance, attractive looks, and practicality – Tesla is changing the motor industry.

    Manufacturers like Volvo, Porsche have now rolled out their own hybrids cars. They are looking to go the route of fully electric motors within a short matter of years.

    Such notable paradigm shifts in the way we do things embody the beautiful concept of creative destruction. Those that shun it get left behind.
    And while it is not all about the monetary gains, you can own the coins to use for transactions rather than for investment.

    It will serve you better, in the long run, to get in the know of what is out there.

    Beware of scammers

    Be wary and vigilant, as like with money and investment, there are sharks out there (offering deals). The aim is to exploit you and many other unknowing technophobes looking to make a quick buck or two from Crypto.

    Mining Cryptocurrencies (is particularly conducive for gaming enthusiasts) and using them to benefit you quickly and securely in the way of a new digitized future.

    Some Internet pirates in desperation use anonymous digital currency such as Monero. They now use java-scripted mining devices (hidden behind ads) to drain hash power unsuspecting from your web-page browsers.

    The way forward

    Everyone is trying to get a piece of the action! There are also legitimate paid commission-based add-ons for trading as well – opening up a new world of digital earning online.

    Don’t get left behind. But as with any investment, and a caution to the wise: Cryptocurrencies are highly volatile, and should not substitute any investment portfolio. They should only and always account for a fraction of your overall investment.

  • Rise of the machines

    Rise of the machines

    As a young man born in and living in Pretoria South Africa, multi-billionaire Elon Musk – better known for pioneering the Tesla battery-operated motor concept – was shunned by the Industrial Development Corporation several times.

    His innovative ideas were denied financial backing so he moved to the USA for better support. The rest as we all know is history.


    The futuristic thinker, however, took a rather skeptical and worrisome handbrake-turn when it came to the topic of artificial intelligence (AI) and its benefits to society.


    When a man like that with so much insight into technology warns of its potentially harming effects, it warrants notice. Musk warned that its use could foster ‘the coming of third world war’. We have to for such reasons,  delve a little deeper into the topic.


    We have rapidly progressed from longer periods of stone, iron, industrial, to that of space, technological/information ages. The world is now apparently fused between the latter three.


    Despite skipping a few ‘crucial’ stages, we have now surged into the age of digital automation. This is while sadly still dealing with the ravages of poverty, disease, and irreversible damage to our environment.

    Automation & AI usage

    Automation is helping business through software like ERPs that take over traditional back-office finance and operations.


    In the IT industry, the Internet of things (IoT), cloud services, and general Software as a Service (SaaS) have simplified things for IT managers. You can now just monitor and attend to more pertinent issues and tasks (hopefully not just stream movies and play games on duty).


    While seated comfortably, you will be able to now perform tasks such as deploying new software, installing/removing updates on multiple machines/devices simultaneously. All with a push of a few buttons.

    Trading bots

    In the high-risk investment scene, automation has given traders more room for better research and analysis Thus relieving you from the known stresses and mundane tasks associated with trading.


    For many trading houses and brokers, AI has even completely taken over the mundane task of making and executing trades.

    iqoption
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    If you haven’t already, read this great book entitled: The Fear Index (thriller by Robert Harris). Though fiction, it illustrates the use of a machine learning tool using algorithms to help a hedge fund company generate billions for its investors.


    The use of AI is not without fault. It can also lead to costly system-generated errors like the trading error a few years at Goldman Sachs cost the firm $100 million and other cases.

    Other use cases

    It can still, on a ‘micro’ level, help free human capital (individuals) from PC-related issues. So things like having stress, headaches, backaches, and lack of time spent with family and friends can be a thing of the past.


    In the industrial and manufacturing sectors, the advent of AI creates even more of a fear and a concern. The number (staffing) of redundancies, may increase when it is introduced.


    This would require careful planning to ensure the blue-collars that are ‘replaced’, are compensated. More so, they would need to be incorporated into different areas of businesses.

    Limits of robotics

    Obviously, not every task need to be automated or performed by robots. We (as humans) are still required to check-up, inspect, and perform quality checks for instance.
    We can, as a result, deal with inter-personal jobs that require more empathy like in customer and social service.


    Human resources or getting into corporate social responsibility (CSI) projects that reach out to communities.

    Embracing it

    More importantly, policies by governments will need to focus ever so more on job-creation. Governments must now adopt innovative means of creating jobs or foster and supporting entrepreneurship. Projects like those of Mr. Tesla/Mr. PayPal/Mr. SpaceX has created thousands of new jobs.


    As for the use of AI in weaponry and military defense systems, the less said the better. When it comes to privacy and security concerns we can only hope that rogue politicians don’t get unregulated access to such technology. In such a case we would only be able to protest and hope not to feature in a real-life James Cameron sequel to Judgment Day.
  • The not-so mysterious world of cryptocurrency

    The not-so mysterious world of cryptocurrency

    Warren Buffett once referred to financial derivatives as “weapons of mass destruction” . He warned that they are detrimental to the global economy and financial markets.

    Cryptos have a way of creating something supposedly of intrinsic value out of nothing. This is as dangerous as propaganda that leads to conflict or promotes struggle.

    They are backed up by a cloud of non-regulatory policies by states who themselves, still traditional monetary policy measures.


    And this is despite their full understanding of the instruments of financial wizardry.

    In economics, the term creative destruction, however, has a paradoxically positive meaning. It is perfectly suited to the new form of “crypto”- currency (Bitcoin) that is not as mystic as it seems.

    A brief history

    Money is a concept that probably also met up with resilience when it was first supposedly introduced by the Chinese. They started carrying folding money during the Tang Dynasty (A.D. 618-907).

    The instability generated by uncontrolled usage and denomination, however, soon led to rapid inflation. This prompted the Chinese to drop it, only for it to be taken up again later when it got stabilized by the adoption and use by the West.

    They developed paper money as an offshoot of the invention of block printing. Block printing is like stamping.

    Ironically that very same term ‘block’ is the foundation behind the Bitcoin – which is generated using blockchains (digital public ledger).

    We won’t get into the mechanics of Bitcoins.  We will, however, attempt to increase awareness on why and how this new payment method could cause positive ripples in the financial global system.

    What is Bitcoin?

    As per Wikipedia, and as simple as it can get in terms of a description: Bitcoin is a cryptocurrency and a digital payment system.

    It was supposedly invented by an unknown programmer, or a group of programmers, under the alias Satoshi Nakamoto in 2009.

    Though the anonymity creates an element of distrust about the agenda of its creators, it is surprisingly more transparent than derivatives.

    Cryptocurrency uses a system of cryptography (encryption) to control the creation of digital ‘coins’ and to verify millions of transactions.

    These transactions include are a basic movement of funds between two digital wallets and get submitted to a public ledger and await confirmation through encryption.

    This video is a great and simple way for you to understand the above because it is best understood when explained as a larger picture. Check out this useful and basic video on Bitcoins.

    That is quite a feat worth acknowledging because 11 years of existence is nothing compared to gold’s multiple century reigns.

    Now 2009 was not long ago considering the Bitcoin is now ‘worth’ well over $20 000 each (updated to 2021 levels).

    For centuries, gold has been our standard of trade or backing of all types of currency until it was ‘uncoupled’ by Nixon in 1971.

    The future of trade and commerce is in the digital sphere – are you in the know?

     Potential currency?

    For something to become the standard measure or mode of trade it, however, needs to be stable. So, while the technology behind Bitcoin (the Blockchain) is relatively sound, its actual price needs to find its firm nesting.

    Established currencies trade on markets via exchange rates with relatively minuscule increments of change in price and value. In comparison, Bitcoin can jump in value by $1000 within (minutes or seconds) – prompting skepticism about its stability.

    Google Engineer Ray Kurzweil, who is revered as a “prophet” for his mysterious predictions, such inconsistency undermines the cryptocurrency’s value as a currency.

    The aim is nevertheless to relieve our dependency on money or more so, the iron grip and often abusive control that some banking institutions have over consumers.

    You could even argue that the recent surge in its price is being fuelled by agents of the traditional banking industry. They naturally feel threatened by the fact that they may not fully understand it and its inherent potential. So they (cash-flush) could inflate it for an inevitable ‘burst’.

    But the currency though very volatile in its movement has remained buoyant. It has now held for well above $10 000 for sustained periods since its inception. Gold is now approx. $1,900.

    Bitcoins provide more guarantee than financial derivatives especially because of their open-source approach to its existence and use.

    Complexity

    The tricky part is simply getting to grips with the vastly abundant information about it and how you could even generate it.

    It is still a great backup ‘of a backup’. We rely on technology and more specifically the Internet for transactions and the associated traffic for our daily lives.

    A simultaneous crash of a few major servers, however, could send it all tumbling back into the digital abyss. But as with money and other forms of currencies, only time will tell.

    Bitcoin will just have to further prove its resilience and stability in the long run.

    Getting attention

    It is certainly not a ‘fly by night’ thing because it has sparked the interests of both public and private institutions globally. China even made a bold move to block the Bitcoin market from trading within its borders at some stage.

    China is notorious for blocking things that stem from the ‘West’ only to later introduce it under their own control to protect their financial sector.

    So, we can be rest assured that the creator is not Chinese! Sweden has allegedly passed legislature to make it an accepted form of currency.

    Currently, banks and governments are frantically creating their own sets of blockchains to ensure they are not caught off-guard.

    Read more about the implications of Cryptocurrency on the financial sector.

    Bitcoin also gets its collective strength (intrinsic value) from its limited quantity in circulation (19 million out of a finite 21 million).

    Spillover effects

    Bitcoin has also paved the way for others such as Ethereum, (mostly used for smart contracts and by developers) which is also seeing good growth.
    Then there is Litecoin, which was formed as part of a controversial yet civil split from the originators of Bitcoin to use ‘variant technologies’.


    All these platforms (companies) now use the blockchain to create all types of cryptocurrencies to capitalize on the spoils of this digital revolution.

    There are also several institutions that are offering late-comers a chance to benefit from the spoils of using and investing in digital currency.

    Naturally, all these schemes with their investment packages would require a ‘buy-in’ and marketing to attract more takers.

    Such Crypto ‘companies’ are likened to a pyramid scheme and subject to many investigations by fiscal and criminal authorities.
    But that is how Bitcoin, its promoters, and the market were initially treated.

    Interested? Check out the following useful links to their official websites to help you get started.
    You can learn more about them, about mining them, or simply buy some Bitcoin here.
    RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK WHEN INVESTING IN CRYPTOCURRENCIES.
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