The listing of Coinbase, the largest bitcoin exchange in the U.S., introduces a new way to invest in cryptocurrencies. WSJ explains how Coinbase is trying to distance itself from the risks of bitcoin to succeed on Wall Street. Photo illustration: George Downs
Tag Archives: Technology
Analysis: The Rise Of ‘Robo-Advisors’ To Manage Personal Investments
Robo-advisors have had a meteoric rise in popularity since their debut in 2008 thanks to the support from millennials and Gen Z. Today, Robo-advisors manage $460 billion, with some analysts predicting it will become a $1.2 trillion industry by 2024. Watch the video to find out why some investors believe it will never replace traditional human financial.
Since their debut in 2008, robo-advisors have had a meteoric rise in popularity. In 2020, they managed $460 billion, a 30% increase compared with 2019. Some analysts predict robo-advising will become a $1.2 trillion industry by 2024. “Investors historically have had two options when it comes to managing their investments. They could do it themselves through something like an online broker or you can work with a financial advisor,” explained Brian Concannon, head of Digital Advisor at Vanguard.
“Now, with the advent of robo-advisors, there’s a third option, and that’s to merge the benefits of professional money management and advice with the convenience of an all-digital application.” Robo-advisors’ sudden rise to prominence was made possible due to massive interest and support from millennials and Gen Z. According to a recent survey by Vanguard, millennials were twice as likely as young baby boomers to consider using a robo-advisor for investments.
“I believe that there are things that technology or algorithms can do better than humans can,” said Taylor Crane, a robo-advisor customer. “And I have no problem trusting a software to do that.” Skeptics do not expect robo-advisors to replace human advisors entirely in the near future. “Clearly, there’s always going to be a human element that’s missing,” said Jason Snipe, chief investment officer at Odyssey Capital Advisors. “My problem always will be the emotional response. Take a situation like last year when we’re going through Covid-19 and markets are moving a lot, dramatically. …
You can’t talk to the technology, right?” To combat this, many robo-advisor companies including Betterment and Vanguard began providing the option of hybrid services that combine both human and digital advice. “[Some] investors we see crave validation from a financial advisor,” said Concannon. “So for those investors, being able to pick up the phone and have a video conference with a financial advisor, have a discussion about their needs and wants goes an incredibly long way to providing them the peace of mind that they so desperately need.”
Time is on the side of the robo-advisory industry as the technology continues to improve and the younger generations accrue more wealth. “I think some combination of the two probably is where we are headed for in the future,” said Snipe. “I think the robo space has room to grow. I think it will obviously modify and change and become even more sophisticated.”
Analysis: The Electric Vehicle Battery Shortage
U.S. automakers are finally making bold commitments to electrify their fleets, but in the short-term, there may not be enough lithium-ion batteries to go around. While China dominates the battery manufacturing supply chain, and Europe is working to catch up, the U.S. still lags far behind.
As batteries become a matter of energy independence and national security, here’s what the U.S. can do to catch up. As automakers continue to grapple with a semiconductor shortage, some experts say the next supply chain crisis for the U.S. could involve lithium-ion batteries. As companies like GM, Ford and a slew of start-ups are ramping up their electric vehicle ambitions, current battery production in the U.S. will not be able to keep up with demand.
Technology: How ‘AI’ Is Improving Creativity
Artificial intelligence is helping humans make new kinds of art. It is more likely to emerge as a collaborator than a competitor for those working in creative industries.
Analysis: ‘How Would Apple Make A Car’ (Video)
As tech companies become a key part of the auto industry, cars are looking more like giant computers on wheels. To understand why a tech giant like Apple might want to make a car, we built one out of iPhone parts. Photo illustration: Alex Kuzoian/WSJ
Analysis: Will Elon Musk’s ‘Starlink’ Improve Rural Internet Service? (Video)
SpaceX’s new Starlink satellite internet service is being touted as a rural internet game changer. WSJ spent time with a few beta testers in a very remote area of Washington state to see if it’s truly the solution to the global broadband gap. Photo Illustration: Laura Kammermann
Future Air Travel: ‘Lillium’ – 7-Seat Electric Vertical Take-Off & Land Jet (Video)
Lilium can revolutionize regional travel, saving people hours not minutes. Using its 7-Seater Lilium Jet, revealed March 30, 2021. Lilium’s regional shuttle service will enable sustainable, high-speed transportation. The 7-Seater Lilium Jet has market-leading capacity and is the first of Lilium’s serial aircraft.
It is capable of quiet vertical take-off, allowing Lilium access to more landing sites and the opportunity to build higher network density, avoiding the need for expensive ground infrastructure. The 7-Seater Lilium Jet and regional shuttle service business model are projected to deliver the best unit economics, with passenger and enterprise opportunities.
The Lilium 7-Seater Jet
The Lilium 7-Seater Jet has a projected cruise speed of 175 mph at 10,000 feet and a range of 155+ miles, including reserves. It is the culmination of five years of technology development across four generations of technology demonstrators, including Lilium’s full-scale 5-Seater.
Lilium applied for concurrent type certification for a high-capacity aircraft with EASA and the FAA in 2018. Development of the 7-Seater Lilium Jet began in stealth mode following this milestone. In 2020 the 7-Seater Lilium Jet received CRI-A01 certification basis from EASA.
Lilium has successfully developed, tested and refined the underlying technology for electric vertical take-off and landing jets – Lilium’s proprietary Ducted Electric Vectored Thrust (“DEVT”) technology, along with key control systems, aircraft and battery architecture. DEVT technology enables Lilium to scale to higher-capacity aircraft and keep noise emissions and ground footprint low.
Biotechnology: ‘mRNA Could Change The World’
The dream of mRNA persevered in part because its core principle was tantalizingly simple, even beautiful: The world’s most powerful drug factory might be inside all of us.
Like so many breakthroughs, this apparent overnight success was many decades in the making. More than 40 years had passed between the 1970s, when a Hungarian scientist pioneered early mRNA research, and the day the first authorized mRNA vaccine was administered in the United States, on December 14, 2020. In the interim, the idea’s long road to viability nearly destroyed several careers and almost bankrupted several companies.
Video Analysis: How Vaccine Passports Can Kick-Start The Economy
Vaccine passports are likely to become a feature of everyday life as lockdowns are lifted across the world. But as “green passes” kick-start economies, what are the potential drawbacks? Read more of our coverage on coronavirus : https://econ.st/397Mkxq
Analysis: ‘Tencent – China’s Most Valuable Company’
Mar.23 — In the space of two decades, Tencent Holdings Ltd. has become China’s most valuable company and Asia’s largest conglomerate. But with Chinese authorities stepping up scrutiny of the internet sector and cracking down on monopolies. it’s not clear if the WeChat owner will still have the same freedom to expand. Bloomberg Television’s David Ingles reports.
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