Why Data is the New Currency in the Technologically Driven World Order?

It is safe to say that assumption has become almost obsolete in the world that we live in presently. The world now wants a backup to each decision that it takes, and by the world, I mean each citizen on planet earth who can make a decision. We now don’t believe in rushing to decisions; we now sit back and analyze what leads to a decision and the baby steps one needs to take a giant leap. Everything is now data-driven about climate change, the stock market, automobiles, FMCG, banks, cryptocurrencies, and so much more. The question, though, which arises now is, has data become a new currency? And what leads us to believe in the fact that yes!! Data is the new currency in this technologically driven world order. Here are some points that may help you comprehend why and how data evolved into the currency it is today.

  1. Digitization:

Let’s go back a few years. 2002, 20 years ago. Do you remember how weather warnings were so absurd? The metrological department would assure that the day would be sunny and families could plan a day out in a park for some picnic, and suddenly you would see dark, dense clouds over your head, raining cats and dogs. This was 20 years back, and now in 2022, you get weather and metrological inputs as accurate as you demand, you get the weather forecast for the next one week, you get the time by which it may start to rain and when it might stop. Twenty years have brought such an accuracy. How? Presently there are around 3300 satellites that orbit the earth; these satellites send data to the stations; analysis of the data helps the department to know what the weather status is and how it will change. Earlier, the techniques were limited to analogue data collection, but digitization brought the change. And not only to the metrological department, but digitalization also gave all the industries in the world data, which helped the industries to forecast.

2. Data Gathering:

Now, since digitalization gave the data, very few companies possess this data. Data is like mining diamonds, all try to find it, but only a few have reserves for it. Now since data is not free for all to look at and analyze, firms now use data to make a market of their own, it uses data as a resource like money, and then there are firms that sell the data to earn money. Hence, one way or the other, it is data that makes money, uses it, or sells it.

Data is driving the industries and their innovations these days. And till the time it is data that drives the industry, it will act as a major resource for the industries to thrive and build upon, just like money. Hence it can be safely said that data is the new currency.

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