To invest your money is said to be one of the best financial advices out there. Through history, investments have been applied to different types of financial markets and vehicles. Today, the most common way of investing is to find an asset online. Whether it is a stock, a crypto currency, or a small business in need of crowdfunding, everything goes on online.
This is also a reflection of the investments themselves. Stock companies are becoming increasingly digitalized, crypto currency have stolen many regular currency exchange traders, and small businesses nowadays are almost exclusively for the "techie" investors. Our whole economy has essentially transitioned into a tech-based environment. What implications does this have for the investment process?
Investing Has Never Required More Knowledge Than Now
If you wanted to invest your money "back in the day", you would often just invest in the big monopoly companies and gain a healthy return per year. Nowadays this method does not satisfy most people, nor are there truly any monopolist companies that are safe in the marketplace. Few people for instance seem to really grasp that Google is only 20 years old.
What is now the world's leading source of information has only been around as long as the commercialized Internet. Similarly, Bitcoin which is the most debated crypto currency, only celebrated 10 years in the marketspace this year. This shows how disruptive our markets are, and furthermore how important knowledge is as an investor. The ones that were well-versed in crypto currencies actually saw the boom coming!
To gain such knowledge, reading an investing blog could be of great help. By reading such a blog, one might get insight into how techie investors think today. From these recommendations however, it is important to read up on the technology that you want to invest in. Whether this is Blockchain technology, or maybe a new social media platform, knowing about the technology is obviously vital to the success of your investment.
However, reading online will of course not be enough. One might even consider getting a job in the field, or an education geared towards it. This would of course extend much farther than just learning for the purpose of investing. One could use this knowledge to truly understand the future of the workplace, and what better investment than that!
Why Investing in Technology Is Smart
The worldwide economy was long fueled by natural resource companies. Many countries have by and far been saved by for instance the oil and gas industry. While these industries are in no way leaving as of yet, and even water, wind, and other renewable energies are on the rise, technology companies are with no doubts the ones fueling the economy today.
This trend will likely not stop anytime soon, as the predictions for the future tell us that technology will affect each and every process in our daily life. Herein lies the computing power predictions for instance, that has calculated how computers' brain powers will be stronger than that of all humans combined.
While this has by and far been one of the most heated issues in terms of possible issues with technology, branches such as artificial intelligence have been prophesied to be the future of business. In fact, all recent discoveries within the technological realm has been applied to businesses immediately. Artificial intelligence, virtual reality, robotics, nanotechnology, Blockchain, and many more technologies have become vital in business over a few years.
Investing in technology might be extremely risky, considering so many companies try and fail. However, if you would like to diversify some risk, putting your savings into a mutual fund focused on tech companies could be a smart idea. You could of course take a gamble on a few smaller tech companies. For instance, you could invest a few thousand in each of 5 promising tech companies. If one succeeded, you would likely more than make up for the losses in the other 4!
Understanding the Impact That Technology Has
Technology has reigned over so many processes in the last few decades that the predictions of artificial intelligence taking over the world seem far less exaggerated nowadays. This fear however should not reject the want to make great sums of money off the investments in such technology.
Understanding the impact that technology has on our lives is essential to succeeding in investments in the future. If you think the current markets are filled with techie companies, then you are in for a surprise in the coming years. Digitalization is a reality, and emerging technologies will be the most important assets moving into the future!
