Investing in cutting-edge technology enables people to put money in breakthroughs that can transform how we live and work. For decades, technological innovations have been coming nonstop. Here are some examples of technology where a Viewpoints investor may choose to invest:
Artificial intelligence (AI) and machine learning (ML): AI encompasses smart systems that do work humans once did. Examples of AI include robots in manufacturing plants and cars’ driver-assist features, like automatic parallel parking. Machine learning goes a step further. Algorithms gradually become better at interpreting data. Speech recognition systems become better at “understanding” voices, and GPS. systems get better at recognizing traffic patterns and finding fast routes.
Virtual reality (VR): Today, people can interact in a three-dimensional, computer-generated environment. With VR goggles, video game players become immersed in a simulated environment. People can experience new and foreign locations without having to leave their living rooms. VR has many educational applications and is used to train pilots and soldiers.
Blockchain and Cryptocurrency: This technology makes digital transactions between two parties possible without the need for a third-party intermediary like a bank. While fully transparent, the transaction is ideally free from fraud or other risks. Blockchain technology has given rise to cryptocurrencies, or digital/virtual currencies using cryptography, like Bitcoin, Etherium, or Dogecoin.
Cutting-edge technologies may provide investors with opportunities for growth, but investing in new technology can come with plenty of risk and volatility. Yesterday’s unicorns can be quickly disrupted by new innovation. Investors should approach each new exciting area with an appropriate risk management strategy in place.