The electronic brains battle
Thousands years ago human exchanges was based on the exchange of goods with the goods.And value of each commodity was determined by supply and demand in front of person eyes or Face to Face ;With the invention of electricity, after which the computer Fortunately or unfortunately, much of the price is determined with the help of computers, or simply called with electronics brains .News related to different pricing In the shortest possible time to be send-out.And simply all stocks and Currencies value and …..For the moment is clear and could visible from anywhere in the world!
Might be at first glance this case It looks great but by a closer look at the subject we will get some other result that might be instead of being helpful will be harmful or even terrible.The majority of the world’s financial markets well equipped to the world electronic Orders registration system.And this means that the majority of traders with their own computer in the any where in the world will be able to register their orders .Consider now a number of world famous banks decide to move the market. and if this move is become a out of control more than expected. Fluctuations would be effect huge shock in the trends of the market .Imbalance created prices with reality causes activation in all world financial markets and they will have very extreme movements and the result will be closure of the world financial markets .
It may not be fair that, America stock index to fall 50%:causes United Arabic Emirates stock value decreased to 90% but shares of Chinese companies and the country’s currency effects less than 10%. As much as financial system towards it is way to automation endangered financial markets is becoming more and more.countries such as China despite high progresses still dealing with the old financial system and this, It will destroy the risk of volatility.In other words, the Chinese currency’s price will up or down each time they need it.
This Chinese method Is laudable.The way in which the developed countries are forced them self to adapt .
In summary:Until the value of each currency to another will change in the moment there is the risk of financial market destroy is higher. And I think this risk is very high.The world has to have other methods to determine the value and to offer practical solutions !One solution could be 100% monetary union .Currency to be created with special name and step by step all over the world toward exchanges just only according with this currency.And it is obvious that, the support of this currency will be big question.Surely the gold will not be accepted as a support and other support will be replaced the gold. The new support will not be physical object and likely based on technological sciences.This article is my personal opinion and it is base and foundation is reflect entirely to the financial markets.
Author: Dr. Iman Jabari From PipSafe Team