#economy

#CodeX: The Power of Creative Destruction by Ajit Minhas

‘Uncertainty’ is inherent in the nature of Innovation.

But it's important to understand that innovation doesn't necessarily mean inventing something entirely new. Instead, it's about Creative Destruction, that truly unleashes the power of an organization by focusing on continuous improvement in all aspects of the business.

Innovation is a never-ending cycle, and product market-fit is constantly evolving. To stay ahead, organizations need to keep rethinking, refining and redefining their solutions.

CREATIVE DESTRUCTION is front and center to the true innovators culture. It’s the mechanism by which innovations continually displace existing technologies and ways of doing things (... get the job done). New organizations, new products and new jobs continuously replace obsoleted ones ... the new destroys the old.

AI Development is the emerging phenomenon of the current Innovation Cycle.

ARTIFICIAL INTELLIGENCE is on the cusp of creating autonomous, self-sustaining digital enterprises that can interact with humans seamlessly. The use cases for AI are vast, from business and consumer applications to customer relationship management, digital health, financial info systems and automated software engineering.

AI presents a momentous opportunity for humanity … IF employed intelligently.

“This is a moment of choice and opportunity. It could be the best 10 years ahead of us that we have ever had in human history or one of the worst, because we have more power than we have ever had before.” — Erik Brynjolfsson, MIT

As AI technology continues to develop, evolve and penetrate into many aspects of our lives, the opportunities are endless. But at the same time, these developments raise important policy, regulatory, and ethical issues, that need to be better understood and addressed due to the major implications it will have on the humanity as a whole.

In 2011, Marc Andreessen coined the phrase “Software is eating the World”. But now:

AI is eating the Software ( … as AI is increasingly powering the Software we use)

In conclusion, Creative Destruction is essential for businesses to stay ahead of the competition and is critical to the capitalist economy. While there are risks associated with innovation, businesses must engage in a continuous cycle of discovery, validation, development, registration, and commercialization to create and deliver value.

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#CodeX: Tulipmania ... Is #Crypto tulip mania 2.0? by Ajit Minhas

“You know, people talk about this being an uncertain time. You know, all time is uncertain. I mean, it was uncertain back in – in 2007, we just didn’t know it was uncertain. It was – uncertain on September 10th, 2001. It was uncertain on October 18th, 1987. You just didn’t know it.” — Warren Buffett

As a result of market cycles, Stock Market crashes and downtrends are an inherent risk of investing.

The Dutch Tulip Bulb Market Bubble, also known as tulipmania, was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid-1600s, when speculation drove the value of tulip bulbs to extremes.

The classic word for these kinds of phenomena is BUBBLE ... and ... The Bubble Bursts !

“Oct. 19, 1987 (also famously referred as BLACK MONDAY), marks the largest one-day stock market decline in history. This day Dow fell by 22.6% in a single trading session. To put that into context, a drop of that magnitude would be a nearly 7,000-point slide based on the Dow’s current levels. In 1987, that was about a 508-point drop. Black Monday prompted the development of “trading curbs” aimed to reduce market volatility – rules that allow regulators to halt trading, including electronic trading, in the event of extreme pricing swings.”

Extraordinary popular delusions and the madness of crowds often leads to Stock Market BOOMS and BUSTS ... followed by a "LIFEBOAT OPERATION".

Today, the story of Tulipmania serves as a parable for the pitfalls that excessive greed & speculation in investing can lead to.

But here's the good news —> History is not the market's friend in the near term, but it's a big-time ally of long-term investors.

Despite all the stock market crashes and corrections, if you invested $100 in the S&P 500 at the beginning of 1926, you would have about $1,112,195.58 at the end of 2022, assuming you reinvested all dividends. This is a return on investment of 1,112,095.58%, or 10.08% per year (excluding fees and taxes).

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