We've just gotten back from one of the major events in the industry - South By Southwest (the interactive session). Unfortunately we were late in trying to book a booth on the exhibit floor, so the goal was to learn where our industry and the world are headed, and what to anticipate in the near future. Here are a few takeaways from SXSW 2014. Also, I had to take a picture of this ad I saw on a bus:
2014 may decide the future of digital currencies
The popularity of Bitcoin is undoubtedly rising, with a multitude of companies building around facilitating the network and its users. While the total market capitalization of Bitcoin exceeded US$10 billion towards the end of last year, there are still no clear rules on tax regulations, nor processes in place to prevent money laundering and financing of criminal activities.
Bitcoin is a bank-less digital currency that is managed in a peer-to-peer way similar to what Napster was for music (only Bitcoin is fully peer-to-peer distributed, without relying on central servers). Bitcoin in theory can be attractive to users because transactions are practically anonymous (and therefore secure by nature), and cheaper for businesses (no fees to third party processors or worries about PCI compliance). But the real question is - should money be self-managed by a mathematical algorithm, or is money - a government-controlled asset? Here is the paradox: privacy and the ability to transact outside of the banking system is what makes Bitcoin attractive to users. And yet, the question of government acceptance and regulation of this currency is inevitable. This year may be the year many governments make that decision.
The Internet of Things versus Small Screens
In the recent few years we've had lots of conversations regarding utilization and optimization for small screen devices. This year the hot topic at SXSW interactive was about no-screen devices, or the Internet of Things. Projects like Kinoma Create take the innovation all the way to the hobbyist level, and make prototyping easier. Your washing machine might be following you on Twitter or sending you a text sooner than you think!
The technology to do just about anything is there and is more affordable than ever. Now what?
The general feeling I got from this year's event is that there is a high level of awareness regarding the social impact of tech, regarding "the right and wrong." Jam-packed sessions on social and political issues, like the virtual conversation with Ed Snowden, sessions on utilizing tech for public good, engaging the socially-conscious consumer, patent trolls and even on digital activism are an indicator that the need for transparency, better privacy and supporting the right causes has become an all-permeating business reality of tech.