The Future Lies In Digital Economy

The Future Lies In Digital Economy

The current economic fiasco caused by COVID-19 has even left the global experts clueless on how to deal with this situation. The decades-long myths related to job securities and traditional business models have failed drastically and people are certainly exploring over their options during these quarantined times.

The economies and stock markets have crashed severely and the crisis is bigger than the one that occurred back in 2009. Governments around the world have been forced to enforce economic lockdowns in order to avoid public health disasters. The situation doesn’t seem to get in control until now and rethinking economical strategies is the way to go.

With such huge blows to the traditional financial systems, certainly now most of the experts now look towards Digital Economy Solutions. The opportunities with this solution are immense and adaptation challenges aren’t less too. Let’s have a look at what benefits and costs are attached to Digital Economies.

Pros of Digital Economy

If you need to scale your economic operations, nothing better than the adaptation towards technological solutions. Once you rely on computational power to perform transactions then minimum human interference is required. Artificial Intelligence and machine learning algorithms deliver powerful solutions for the needs of masses and operations scalability becomes a real possibility.

Even trading platforms now make the most use of these smart algorithms that are able to process and analyze data in no time. The prime example is where profit-making is automated based on the user settings and carries out transactions on their own. This presents exponential profit-making opportunities while trading along.

Traditional financial markets have been doomed during these crises and cryptocurrencies have shown more resilience. This is due to the fact that they rely on decentralized networks where power rests with each of the digital asset owners. You gotta admire the fact that markets are controlled by the users themselves and no third parties interference is involved.

The digital economy helps to strengthen the bonds within the global village and the transfer of goods and services is not a problem at all. The backbone of IT and Software Industry’s growth is based on these innovative payment solutions and provides immense opportunities to skilled workers who are acquainted with trending IT tools.

You would also love the transparency that these systems provide. Digital payments are more secure and each of the records is accessible whenever you want to have a look onto it. With no human involvement, the possibility of errors is almost none.

Challenges towards Adaptation

Since the economies are already in dooms and investments have dried up, the challenges now posed are even bigger than before. It is quite unfair to say that the number of jobs available will decrease. The job descriptions are now regularly evolving as companies are making a makeshift towards innovative technologies.

The skilled workforce is now required and it would be only possible when adequate training is available. This presents a new kind of problem for the authorities in the subcontinent as they are already dealing with existential threats due to illiteracy and severe economic crises. The time is right for governments to set their priorities in right direction and look towards making people more powerful by providing an adequate level of training.

The startup’s costs are also high due to the absence of IT infrastructure. Powerful data centers are required and machines that are able to handle large numbers of transactions without affecting the processing speed. This poses a serious challenge to provide finances and overlook them that they are invested in a right manner.

The experts are still lacking as few companies are able to manage a large part of the digital economy. Recently Reserve Bank of India has been directed to launch its own digital currency so that it can become part of the digital economy that is strengthening its roots globally. The opportunities and challenges both exists for making a makeshift but certainly, things cannot be allowed to go in the same manner as it was before this COVID-19.