Tough Markets Breed Innovation – Money Morning Australia

In today’s Money Morning … a timely storm … a new way to pay … a silent revolution … and much more …

After two very difficult days of market turmoil, volatility seems to be heating up again.

Inflation, of course, is a big factor in this – be it in Australia or the US.

Investors are clearly worried that the Fed and RBA will have to play catch-up – a signal that may indicate that things may get worse before they get better …

For more speculative stocks and high-growth-oriented assets, this is certainly a concern.

As I said last week, the biggest U.S. tech stocks are being tested more than ever. It will depend on the individual enterprise and its management, whether they sink or float. And this is a topic that seems to be continuing.

For example, shares of Google (Alphabet) received a big blow in the last week – as a result of weaker expectations and the results of their last quarterly earnings.

In contrast, Microsoft has managed to overcome its declining trend after higher performance. This is another example of the imbalance that emerges between technology stocks, which could be the basis for broader market shifts.

From my point of view, it is much more exciting what this outflow can lead to. Because, despite the pain in many promotions, I suspect we will see much more experimentation and innovation …

Timely storm

I think it’s hard to dispute the fact that the global economy is reaching its next big point.

We are now firmly in the midst of our reassessment after the pandemic, a phase in which investors are divided between long-term optimism and short-term pessimism.

But this is hardly a new phenomenon.

In my opinion, this is the concept of “creative destruction” or “Schumpeter’s assault” – an economic theorem that states the need to destroy the old to make room for the new.

I won’t bore you with details, but give it to Google if you want to know more yourself.

Anyway, I want to say that I really think we’ll see something like a reordering of markets. Rather, I expect technology stocks and industries in particular to shake up a bit. For example, Facebook’s move to Meta is a recent reflection of the kind of change I’m talking about.

In a similar vein, another big name in the technical space has recently made quite significant changes. It just didn’t get as much coverage as Zuckerberg’s bold plans.

Of course, I wouldn’t be surprised if this started a much bigger trend, but …

New payment method

Earlier this month, e-commerce giant Shopify partnered with Strike to facilitate crypto payments.

If you’re unfamiliar with Shopify, it’s a platform that hosts more than 1.75 million merchants, helping millions of mostly small and medium-sized businesses reach a wider audience online. As a result, $ 175.4 billion was raised last year through their network and the companies that use it.

Needless to say, they are a very big player in the e-commerce industry. And now, thanks to this partnership, they will allow businesses to accept cryptocurrency for their goods.

This is a huge breakthrough for the adoption of the crypt, as reported by PYMNTS earlier this month:

‘Strike founder and CEO Jack Mahlers noted that the Strike-Shopify integration will also include offline retailers, including Walmart, McDonald’s and many more across the United States. an increasingly digital world.

‘“Since 1949, there has been no better payment network that allows us to innovate, rely on financial integration, offer cheaper services, faster services,” he said at a Bitcoin conference where he made the announcement, according to a Coingape report. “My grandfather used the same technology as me. It’s not American; it’s nonsense. “‘

While Mallers may be directly talking about the deal, Shopify hasn’t really made as much noise about it. In fact, that’s why I’m telling you about it only today, because I’ve only recently heard about it.

It’s a big story, but it doesn’t spread as one. However, it all seems to be part of the Shopify plan.

The Silent Revolution

It should come as no surprise that we are quite vocal supporters of cryptocurrency Morning money. The long-term potential of blockchain-based systems really excites us, not just as a speculative asset to invest.

We also know that many people do not share our optimism.

For the vast majority of people, the crypt is still a taboo subject. Technical companies in particular are struggling to find ways to adopt this new technology without disrupting their existing customer base. This is a mystery that Shopify may be actively trying to avoid by downplaying this new development.

How Financial mail remarked on the matter:

‘They are [Shopify] may have particular cause for concern, given that for some reason the crypto is particularly polarized in technology. Whether it’s Tesla Inc., Ubisoft Entertainment SA or private Discord and Kickstarter, their individual crypto-hugs have proven so unpopular that most have given up.

‘Shopify may want to have their own cake and also eat it. He sees the potential in crypto, but is quietly betting on a less polarizing future when, perhaps, like the SMTP protocols in our email, we use this technology every day without realizing it.‘

This conclusion – a silent revolution, so to speak – is exactly what we expect.

Cryptocurrency is the technology that needs such a smooth transition to the mainstream. It requires multi-layered developments that allow your everyday user to buy, sell and make deals without having to know how it works.

Only once we reach this point will we probably see a real mass adoption of the crypt.

That’s why it’s so important for a company like Shopify to try to include in its operations. Because only with such a bold adoption of new technologies will we really see innovation. And it is from this innovation that we are likely to see a new phase of stock growth and growth.

So while everyone else is busy with daily market fluctuations, don’t lose sight of the big picture. We are at a turning point for technology, and cryptography is just one aspect that can help usher in a new era of excitement for investors.

Sincerely,

Ryan Clarkson-Ledward,
Editor, Morning money

Ryan is also the co-editor Exponential stock investor, a stock newsletter that tracks promising stocks with low capitalization. For information on how to subscribe and see what Ryan is telling subscribers right now, Click here.