Information- A new type of Currency in Value Exchange
18th May 2020
- One of the longer term effects of COVID-19 is the devaluation of Australian dollar.
- Learn how to counteract the limitations of currency exchange.
Whilst the Corona Virus hasn’t fully run its course, its longer-term effects are already starting to surface. One of these longer-term effects is the impact on the AUD. Like other currencies, the AUD is being devalued because of the need to cushion economies and the downward trend in confidence/ability between trading countries. Most economies are scrambling to counteract these downward forces and limit the effect of the coming ‘depression’. What this means for the punter (at no fault of their own), is that they can buy less in comparison to what they could when the dollar was stronger.
One might ask, can we avoid devaluation? Because the exchange rate of the AUD (which by nature has a limited supply) is simply a reflection of the value of limited resources that that can be traded, fiat currencies cannot avoid devaluation. Its delineation is supply/demand based on the premise of limited resources that are arguably controlled by the minority.
One way of counteracting the limitations of currency exchange is to adopt a neutral platform that is not bound by being limited i.e. the use of Information as an exchange platform as opposed to a commonly accepted index (fiat currency). Digital currencies are partly there, although they still use the condition of being limited in order to gain adoption and deliver a return on investment for backers. But what if we could achieve a value exchange system based on the individual rather than a consensus. It would put devaluation of ‘value’ into the control of the punter who has the infinite capability to create value.
The utopia of information as a currency is currently limited simply because there are many missing pieces to deliver such a platform which needs a robust edge based transaction system, an arm’s length, unbiased AI information broker to facilitate exchange and robust rules of interfacing in order to preserve the individuality of value.
We aren’t there yet, but we are getting closer. Organisations like Microsoft are starting to focus on edge for the future and closer to home, others are investing in the infrastructure needed to support secure interchange. These are all predictors for how we can participate in what will become a new era of information technology.
About the Author
Jon Lim is a Data Centre Executive and Technical Advisor for ACS Professional Partner, Wolfe IT Systems.