The world stock markets had a positive reaction to the U.S. Jobs report from Friday, regaining some of their losses from earlier this year. Gold and Silver took overnight hits from this happy market news, but are currently clawing back some of that drop as the Dollar Index sees an early morning dip. At the time of this report, April Comex gold futures were down $4.40 an ounce at $1,319.86. May Comex silver was down $0.063 at $16.505 an ounce.
It has yet to be seen what the lasting impact of America’s steel and aluminum trade tariffs will have, but there is still potential for retaliation by other countries, which could take the shine off of the stock market.
Cybersecurity and Cryptocurrency
We need to build a better mousetrap before these sophisticated cyberattacks take over the worlds banking system. Cyber-risks has become a top priority for every CEO and has become a major concern for every sitting banking board member.
According to the FBI, cyberattacks have caused losses of over 3 billion dollars worldwide.
The current banking system is built on a centralized platform causing a great risk of fraud to the world’s banking system. This type of system makes the banks’ client data insecure and easily alterable.
So now, the banking industry is reaching out seeking to solve the problem of fraud. A Blockchain system offers a transparent and encrypted model which can easily eliminate that risk.
Several banks have contracted with the likes of IBM to build a Blockchain system. The Blockchain network will enable the banks to be more interconnected and ease the transfer of assets within seconds with high levels of security.
Companies also hold valuable information about their customers such as contact details, banking info and credit card numbers, to mention a few. Scammers attempt to steal this data by penetrating IT systems by spreading malicious software, or by impersonating a customer or government official in an e-mail, text or telephone call. Data theft can have disastrous consequences for companies. You never know who is on the other side of that contact. It could be someone in a remote part of the world where U.S. regulators and Federal officials have no access.
The danger going forward is the possibility that the current financial system will need to be overhauled due to the enormous risks of future cyber-attacks and can therefore be swept away by the security the Blockchain network offers.
There are significant concerns that the current financial issues will lead the world to look for an alternative
to the U.S. Dollar. Just look how popular Cryptocurrencies have become. Before this happens, the adaptation to
a Blockchain banking system will help overcome the current financial crisis and establish a reliable and trustworthy alternative to our current system.
Banks will also have the opportunity to invest in cryptocurrencies. Despite the challenges of the cryptocurrencies such as lack of regulation, the industry has still grown popular. I’m shocked that the regulators haven’t got involved, especially with the major exchanges trading Bitcoin as a future cryptocurrency.
To say the government is always behind the curve is an understatement. One just has to look at how the Federal
Reserve conducts its business.
Have a wonderful Friday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.