Thomas Love's Blog – Comm 101

Bitcoin has seen remarkable success since its initial launch in August of 2008 at a meagre price of $2, skyrocketing to a price of a record 7,400 USD and up by more than 750% in the past year.  However, recent falling prices and instability has caused some serious concern for holders of Bitcoin and those utilizing its flexibility.

Bitcoin operates as what is called a “cryto currency;” which operates via digital asset transactions.  Avoiding management and executives and instead utilizing a type of mining process where users “mine” for Bitcoins, has propelled the cost of bitcoin to incredible numbers.

The cornerstone of Bitcoin is in the fact that it is decentralized.  Operating without governmental intervention, could be be the double edged sword that dictates this crypto currency’s end game.  One major advantage of Bitcoin is in the fact that it doesn’t respond to monetary influences; such as inflation or deflation.  Instead, Bitcoin responds exclusively to market demand, moving up and down depending upon what individuals dictate.

Users “mine” to accumulate Bitcoin.

However recent months have lead to some concern for this “crypto currency” as the price has continued to show rapid fluctuation and instability, falling 7 percent just last week.  It has become increasingly clear that bitcoin potentially could be sitting on an extraordinary bubble with prices doomed for the ground.  Financial leaders such as  J.P. Morgan Chase & Co. Chief Executive Jamie Dimon has described bitcoin as a  “fraud” that will “blow up.”

The possibility of boom and bust is definitely in play when it comes to Bitcoin, as historically such incredible growth at such a rate has had some devastating effects within the technology industry.  Take for example the Dot-com bubble of the 1990’s,  where excessive speculation and extreme growth lead to the failure of hundreds of thousands of new internet companies.  Even developed companies such as Cisco, fell as much as 86 percent.  Something could be similar in the age of these “crypto currencies” as these extreme highs and lows is indicative of what happened a couple decades ago.  It will be interesting to see exactly where Bitcoin “falls” in what could be the next couple years, potentially months.

In defence of Bitcoin and its success are some serious competitive advantages are felt relative to traditional currency.  Take for example its resistance to counterfeit; this comes back to its virtual nature and intangibility.  In addition, all transactions with Bitcoin are irreversible and come cost free, a serious benefit for individuals looking to keep low margins.

The decentralized nature of Bitcoin could be dictating the ebbs and flows that comes with the general market, but evidence from what Bitcoin is experiencing in this period of time in terms of fluctuation, is indicative of disaster that was seen not many years ago.

Media References

https://dataeconomy.com/2017/07/history-of-bitcoin/

https://www.wsj.com/articles/bitcoin-the-worlds-most-dramatic-bubble-ever-1510303095

http://www.dw.com/en/bitcoin-value-falls-dramatically-in-48-hours/a-41332951

All images obtained from free photo sharing site, pixabay.com

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CEO of Tesla, Elon Musk has stated that the future of AI could trigger World War III, President Vladimir Putin has described AI’s eventual leader as the “ruler of the world.”  These statements are frighteningly accurate and should be regarded as a warning, as the amount of leverage AI will have on the job market and political hemisphere in even a few short years will be significant and cause for concern.

Sophia Bernazzani of HubSpot describes 10 jobs that automation will most likely replace, and 10 that are safe and not susceptible to automation any time soon.  A clear pattern emerges among the jobs most at risk.  They seem to low-skilled in nature and with tasks that are very deliberate and redundant; (Receptionists, Telemarketers, Couriers)   Initially, the jobs that will be first replaced and are already being compromised are those requiring low skills, such as in manufacturing; which we are already seeing in many factories and tech companies such as Amazon, Apple among others.

However, it is becoming more and more evident that other jobs ones requiring more skill and education are in danger of being replaced to automation.  Take for example Unilever; the creator of over 400 different brands, such as Dove, Axe, Vaseline, Becel, and many more.  They recently launched a significant hiring experiment in which algorithms determined the suitability for different candidates.  By replacing humans with logarithms not only are costs lower, but predictions can be more accurate.  This is only the tip of the iceberg in terms of what is to come.  The economic benefits in terms of operations seem to be endless with regard to automation; the obvious costs of salary are clear, however automation can also be in  operation 24/7 of the time without the need of breaks, paid leave, benefits, etc.  It is reported that up to 38 percent of all US jobs could be overthrown by 2030.

The consequences of job loss and automation extend beyond initial economic impact.  Take for example the 2016 presidential election; prior to the November 8th election, President Trump campaigned on the premise of job loss to what he described as illegal immigration and foreign workers.  However, it is found that many of the low skilled jobs were not lost to immigrants, but to automation.  Even greater political extremes could be felt with the upcoming shift in automation.

It has become ever-increasingly clear that in a radically evolving job market, being equipped with the knowledge of what jobs are most at risk to automation is of the utmost significance. This is particularly true of university students who could be studying and paying thousands of dollars in tuition for a job that may no longer be needed by humans.

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Media References

https://blog.hubspot.com/marketing/jobs-artificial-intelligence-will-replace

https://www.wsj.com/articles/in-unilevers-radical-hiring-experiment-resumes-are-out-algorithms-are-in-1498478400

http://www.businessinsider.com/when-robots-will-take-peoples-jobs-2017-6

All images found from free photo sharing site, pixabay.com

In lieu of Monday’s controversial Columbus Day which celebrates Christopher Columbus’ “discovery” of the land known as the United States in 1492, one area conquered via Columbus goes unrecognized in Puerto Rico only until recent events.

Puerto Rico has been regarded as a territory of the United States ever since 1898 when the United States gained control following the Spanish-American war.  It has been the subject of much political discussion, particularly following a 70 billion dollar debt and the United States toying with the idea of a bailout back in April.  However, it has been brought right back to the forefront after recent devastation of Hurricane

84% of Puerto Rico is left without power after recent devastation from Hurricane Maria.

Maria, a vicious storm claiming more than 80% of the island’s power since the Category 4 storm took plight Sept. 20. The storm has already claimed the lives of 45, with many more still missing.

The current Trump administration’s initial response to the crisis was rather benign in nature, sending government officials and offering discontent towards the idea of funding.  Following public pressure and a 353-69 congress vote, a 36.5 billion dollar aid package was agreed upon in Congress.

Trump’s historical moral deficiency and mantra of putting “America First” is further represented in Irum Rafiq’s blog, which describes his efforts towards repealing DACA, a program put in place to allow a pathway to citizenship for children of undocumented immigrants.  As described in the blog, in conjunction with the cruelty of deporting children back to a country they have never known or stepped foot on, the economic impact of Trump’s policies can be of concern.

Trump further commented on Puerto Rico in a slew of tweets attacking the mayor of San Juan, describing “poor leadership” and her “not being able to get their workers to help.”

Recent tweet sparking outrage among mayor Carmen Yulin Cruz and many other Puerto Ricans.

Trump visited Puerto Rico October 3rd, offering aid and input on the situation. “You’ve thrown our budget a little out of whack. We’ve spent a lot of money on Puerto Rico; sometimes you get hit, and you really got hit.”

Economic repercussions of the Puerto Rico crisis are significant; with the New York Times predicting over the next fifteen years lowered incomes of up to 21 percent and approximately 180 billion lost in economic output.  The crisis is said to take almost 26 years to return back to current levels.

The notion of “America First” is relevant to Puerto Rico, as the citizens of the Caribbean territory are registered as Americans, and served in the U.S forces in every major war.  Local autonomy hasn’t historically worked well for Puerto Rico as evidence by fiscal mismanagement and the economic calamity of Hurricane Maria.  The next steps for Puerto Rico will be in the creation of a state, which will allow the right to vote and legitimate congressional support.

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https://www.washingtonpost.com/news/politics/wp/2017/10/12/well-probably-never-know-exactly-how-many-people-died-in-the-aftermath-of-hurricane-maria/?utm_term=.8c253f9342e5

http://www.chicagotribune.com/news/nationworld/politics/ct-trump-puerto-rico-aid-20171012-story.html

https://www.tripsavvy.com/puerto-rico-and-united-states-relationship-1622032

http://www.washingtontimes.com/news/2017/apr/18/puerto-rico-post-bailout-economy-must-stick-to-con/

Images obtained from free photo sharing site, pixabay.com

Throughout history, economic development has otherwise been synonymous with practices that damage the sanctity of the earth and its inhabitants; many practices throughout history and today affirm this notion, such as colonization, unfair trade practices, and more recently understood environmental degradation coming from a variety of sources; most notably in the burning of fossil fuels.  Practicing business in a way that can be beneficial for both the global economy yet while still maintaining respect for the planet and its inhabitants is one of the defining and challenging topics we as a society face.

To establish a historical precedent, as a means for countries to  accumulate wealth, European countries began extracting raw resources and transferring them back to their countries to be processed into goods.  In doing so, colonies were stripped of their resources and the economy being exclusive to single commodities in each colony created what are known as monocultures.  Lack of diversification in these resource rich colonies often had crippling effects on their economies and forced their dependency on the countries who initially took these reserves from them.  Recovering from years of colonial abuse has posed many challenges, with those most damaged, particularly African colonies, being indicated low in the ranks of the Human Development Index , which measures life expectancy, education, and GDP.

The ethics and values of companies and countries play a significant role in how they administer their corporate values.  Ethics evolves over time, and countries and corporations alike seem to be adopting the notion of fair trade, or social entrepreneurship.  Rationale is rather ambiguous however, as public could be leaded the charge and dictating the way the companies garner market share.

Economic growth has also come with compromising effects  on the environment.  Our current dependency on fossil fuels has lead to excess C02 (Carbon Dioxide) in the atmosphere and consequently a blanket absorbing infrared radiation and preventing it from reaching the universe beyond the earths atmosphere.  The absorbed energy has a warming effect on the atmosphere and on the surface of the earth;  this can be problematic, most specifically in glaciers, as rising sea levels can lead to overtaking of low lying port cities and countries.  Green environmental policy as well as the strategies indicated from various companies are important in combatting this taxing environmental issue.

Often social, environmental and economic values are viewed interchangeably. Identifying with the idea of sustainability, as opposed to corporate responsibility, is the first step in connecting these systems and providing economic growth that can be beneficial and with little negative impact on future generations.

Media References

https://www.thegaurdian.com/sustainable-business/talk-point-systemic-solutions-change

http:/www.nrcan.gc.ca/publications/fossil-energy-future/1167#ch

hdr.undp.org/en/2016-report

Sawyer, S; Gomez, T; (2012) The Politics of Resource Extraction: Indigenous Peoples, Multinational Corporations and the State, page 13

All pictures obtained from free photo sharing site, pixabay.com

The tech giant Uber has dominated the ride-sharing industry in recent years; garnering attention and significant support from individuals looking for affordable, trendy travel or perhaps temporary employment in the form of a driver.  However this year, they have also dominated the business community with regard to public relations struggles.  These struggles seem to be cyclical and less and less spontaneous in nature, which pose some serious questions as to the integrity of the company and the future of their market share.

The month of August was no exception, as two incidents were brought to the forefront; Uber lost contracts with the Philippines for a month after disregarding a policy administered by The Land Transportation Franchising and Regulatory Board (LTFRB) which ordered the ride hailing firm to “cease and desist” after it called for more comprehensive registration of new drivers; an effort to prevent unregistered/very young drivers from getting behind the wheel of taxi or ride-sharing services.  This policy was ignored, and consequently the LTFRB blocked all Uber services for a minimum of a month. Intentional or not, respecting and acknowledging the policies of a country where business takes place should be at the forefront of maintaining a positive business and public relationship. 

August had Uber in the public eye once again after London’s Metropolitan Police claimed Uber had followed up on criminal complaints through Transport for London as opposed to police services, which allegedly adds up to seven months delay for criminal investigations according to Met inspector Neil Billany; potentially prolonging investigations.  Neil describes more specifically of an incident stating “They could have prevented a second attack by a driver who had been allowed to stay on, following an allegation of sexual assault.”  Former CEO Travis Kalanick dismissed these statements claiming they were “without merit and riddled with lies and false allegations.”

Uber’s biggest PR fail yet came January 28th following President Donald Trump’s implementation of an executive order concerning a ban on predominantly muslim-majority countries.  This issuance sparked immediate outrage, protest and a statement from the taxi union in New York restricting all rides to JFK international airport (the site of protest) Uber continued offering rides throughout the evening; only turning off “surge pricing” (a feature that increases prices of rides during high demand) thirty minutes after the protest.  This particularly outraged Uber’s young, socially conscious base and lead to the creation of the hashtag #DeleteUber, and approximately 500 000 deleted accounts according to the NYT.

Protest at JFK International Airport in New York

Uber’s attention to their bottom line through dismissal of policy and social propriety has come at the cost of relationship with stakeholders over recent months.  Being cognizant of these values, particularly held with Uber’s young demographic, will play an important role if this tech corporation wants to get itself back on track.

Media References

https://www.theatlantic.com/technology/archive/2017/04/ubers-pr-nightmare-a-field-guide/523269/

http://www.theindependent.co.uk/news/business/news/uber-sexual-assaults-metropolitan-police-fail-report-attacks-london-drivers-taxi-ride-sharing-app-a7891971.html

http://www.theindependent.co.uk/news/business/news/uber-philippines-ban-taxi-driver-app-ride-hailing-cease-desist-land-transportation-franchising-and-a7895796.html

All images obtained free photo sharing sites; pixabay.com and pexels.com