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‘Extended reality’ to create 860K jobs by 2025: EU Commission

July 12, 2023 Coin Telegraph

The European Commission has laid out its plans for becoming a “world leader” in Web 4.0 and the Metaverse.

The European Commission has tipped “extended reality” — technology that enables people to interact with virtual worlds — will create as many as 860,000 jobs in Europe by 2025.

Extended reality or XR is an umbrella term for immersive technologies including virtual reality, augmented reality and mixed reality, and is a “major technology enabler” for virtual worlds, said the Commission on July 11.

Europe throws its hat in the ring to become a world leader in Web 4.0 and virtual worlds.

The new internet will impact the way people live together, bringing many benefits.

And we need to have people at the centre and shape it according to our EU digital rights and principles. pic.twitter.com/rc0R3qUm0y
— European Commission (@EU_Commission) July 11, 2023

“The impact on employment is expected to be highly significant,” it said, noting that another 1.2 million to 2.4 million jobs would be directly or indirectly created in other sectors by 2025.

However, the Commission noted that today, most of the innovation around the Metaverse occurs in the United States, China and South Korea.

“Contrary to these countries, in the EU there are no tech giants to lead the investment in the development of virtual worlds over the next decade.”

Most of the AR/VR market activity in Europe focuses on gaming, media and entertainment, but there’s “much room” for other applications, including retail, healthcare, military and defense, and manufacturing.

The Commission noted that virtual worlds, enabled by these XR devices, are one of the technologies enabling the “next generation” of the world wide web — Web 4.0 — where physical and digital objects come together in virtual environments in real-time.

“We are at the onset of a major technological transition, Web 4.0. Virtual worlds are an important enabler of Web 4.0 that can significantly revolutionize the daily lives of people and open a wide range of opportunities in many business and industrial ecosystems,” it said.

Some examples included using virtual worlds to train surgeons for complex medical procedures, using “digital twins” to preserve cultural heritage buildings, or even, using 3D models to solve global warming.

In its working document submitted to the European Parliament, the Commission proposed its plan to become a “world leader” in Web 4.0 and the Metaverse.

Web 4.0 (aka the #Metaverse ) will allow an integration between digital and real objects and environments.

Europe has what it takes to lead this next technological transition — notably for the #industry.

Our strategyhttps://t.co/Bc39OYDkru pic.twitter.com/v4iGqtEkKw
— Thierry Breton (@ThierryBreton) July 11, 2023

“Today, Europe throws its hat in the ring to become a world leader in Web 4.0 and virtual worlds,” said Thierry Breton, the European Commissioner for Internal Market.

A total of 10 actions have been proposed by the Commission to achieve this, including attracting specialized virtual world talent to the region, creating regulatory sandboxes to test novel ideas and developing global standards for interoperable metaverses.

“Europe has what it takes to lead the next technological transition: innovative start-ups, rich creative content, and industrial applications, a strong role as a global standard-setter, and an innovation-friendly and predictable legal framework,” added Breton.

Web3 Gamer: Apple to fix gaming? SEC hates Metaverse, Logan Paul trolled on Steam

Can artificial intelligence create more jobs?

May 11, 2023 Coin Telegraph

Despite negatively impacting the labor market, there are many reasons to think AI will eventually contribute to creating new jobs and economic growth.

Artificial intelligence (AI) can increase productivity, boost economic growth, alter existing occupations and generate new ones. Without a doubt, AI will result in some job displacement in the short term, but there are numerous reasons to think that AI will also contribute to creating new jobs and economic growth in the long run.

Artificial intelligence can also help workers become more effective and productive by giving them access to real-time data and insights, enabling them to enhance their performance and make better decisions. In addition, AI can generate new employment opportunities in the creative and artistic industries by nurturing new modes of expression and creativity. For instance, artificial intelligence can produce original works of literature, music and art, allowing creators to work with AI systems to explore new kinds of creativity.

Will Ai erase jobs? Yes
Will Ai create jobs? Yes

1-1 goaless draw
— Kalu Aja (@FinPlanKaluAja1) April 6, 2023

Similarly, by assisting organizations in identifying and averting cyberattacks, AI can create new jobs in the cybersecurity sector. For example, AI can spot behavioral patterns that could be signs of a cyberattack, enabling organizations to take proactive steps to stop or lessen the attack. Cybersecurity experts who are proficient in employing AI and machine learning techniques to protect against cyber threats may find new employment prospects as a result.

Enabling new products, services, industries and jobs with AI

By enabling the development of new products and services previously unattainable or unfeasible, AI can also create new jobs. For instance, AI can create personalized medicinal treatments, precision farming and sophisticated industrial methods. These new products and services can lead to new responsibilities in research, development and marketing, along with new skills and experience requirements.

AI can potentially generate new jobs by enabling new sectors and business models. For instance, the emergence of AI-powered digital assistants and smart home appliances has opened up new career prospects for hardware engineers, data analysts and software developers. Similar to how autonomous vehicle and drone research has opened up new career prospects for engineers, technicians and logistics specialists.

AI automation and the transformation of existing jobs

Automating tedious and normal chores allows people to concentrate on more difficult and creative tasks, which is one example of how artificial intelligence might create jobs. For instance, AI-powered chatbots can respond to routine customer service questions, freeing up human customer service agents to handle more complicated situations that call for interpersonal connection and problem-solving abilities.

In addition, businesses can engage with clients and partners in new areas thanks to language translation services enabled by artificial intelligence. As a result, there are more opportunities for linguists, software developers and localization experts to create and enhance these systems.

Similarly, AI-powered drones are now being utilized for inspecting infrastructure, and surveying and monitoring crops. As the demand for software developers, data analysts and drone operators increases, new job possibilities will arise in these fields.

5. Agriculture:

AI-powered drones, sensors, and robotics will optimize crop management, reduce waste, and improve sustainability.

Example: Blue River Technology's See & Spray system uses AI to identify and target weeds, reducing the need for chemical herbicides.
— Tomas Ondrejka (@tomas_ondrejka) May 2, 2023

Some concerns and the call to action

However, there are fears that AI may result in significant job displacement in some businesses and areas. Automation fueled by AI, for instance, may result in considerable job losses in the industrial, retail and transportation industries, and some administrative and white-collar positions. Automating low-skilled occupations and creating new opportunities for highly trained individuals at the expense of workers with less education and training could also worsen already-existing disparities.

Policymakers, educators and business leaders must collaborate to address these issues, ensuring people are ready for the evolving nature of work in the AI era. Focusing on education and training will be necessary, especially in the science, technology, engineering and mathematics professions, and other areas where there will likely be a significant need for competent individuals. To facilitate the development and commercialization of new products and services, it will also be necessary to make investments in infrastructure and innovation.

Additionally, authorities need to make sure that society as a whole benefits from AI. New laws and regulations may be required to address the issues of income inequality and job displacement, and ensure employees are protected with access to social safety nets.

Over half of Americans fear ‘major impact’ by AI on workers: Survey

April 21, 2023 Coin Telegraph

Bias

More respondents said AI will “hurt” American workers more than it will “help” them over the next 20 years.

Nearly two-thirds (62%) of Americans think implementing artificial intelligence (AI) in the workplace will have a “major impact” on American workers within the next 20 years, leaving many employees “wary” and “worried” about what their future holds.

An April 20 Pew Research report found 56% of the 11,004 adults surveyed in the United States said AI will have a major impact on the U.S. economy too. Another 22% believed AI will impact the economy to a minor degree.

Only 13% of participants believed “AI will help more than hurt” American workers, whereas 32% thought the opposite. The rest of the participants predicted “AI will equally help and hurt” American employees (32%) or were unsure (22%).

While 62% of Americans believe AI will have a major impact on workers generally, just 28% believe its use in the workplace will have a major effect on them personally. https://t.co/ExpDNlOsWl pic.twitter.com/biMSX1AUln
— Pew Research Center (@pewresearch) April 20, 2023

The study didn’t directly ask participants whether they thought they would lose employment to AI but many respondents cited worry that an AI-enabled workplace would lead to increased surveillance, data mismanagement and misinterpretations.

Pew Research said there is a “consensus” that many American workers feel like they would be watched “Big Brother” style, with 81% citing the concern.

71% of respondents said they oppose the idea of AI being used to help make a final decision in the hiring process.

Nearly two-thirds said they would be most bothered by AI tracking their minute-to-minute movements, and around half cited potential frustrations around an AI keeping track of how many hours they’re at their desk and recording exactly what they’re working on.

*For every participant that was in favor of AI being used in the hiring process, 10 opposed it. Source: Pew Research*

Just under 40% cited concern that AI would be used to evaluate their performance.

Despite the mixed views on what AI would offer to the workforce, two-thirds of respondents said they wouldn’t want to apply for a job where AI was used to make hiring decisions.

One surveyed man in his 60s explained that AI shouldn’t be used for that purpose because it can’t judge character:

“AI can’t factor in the unquantifiable intangibles that make someone a good co-worker ... or a bad co-worker. Personality traits like patience, compassion and kindness would be overlooked or undervalued.”

“It’s a ‘garbage in, garbage out’ problem,” another surveyed woman explained.

Not everyone agreed though as a man in his 50s explained AI has the potential to fill the shoes of a hiring manager:

“I think the AI would be able to evaluate all my skills and experience in their entirety where a human may focus just on what the job requires. The AI would see beyond the present and see my potential over time.”

Just under half of the participants said AI would treat all applicants in the same way “better” than what hiring managers do, while 15% said AI would be “worse.” Under 15% said the treatment would be “about the same.”

Those surveyed who claimed AI would lead to “better” treatment explained the technology would help circumvent biases and discrimination based on age, gender and race.

Others believed AI may reinforce the same prejudices that companies are trying to eradicate.

The motivation to carry out the study was partly prompted by what Pew Research describes as the “rapid rise of ChatGPT” — an AI chatbot released by OpenAI on Nov. 30.

Magazine: NFT Creator, Emily Xie: Creating ‘organic’ generative art from robotic algorithms

What is fiscal policy, and why does it matter?

March 25, 2023 Coin Telegraph

Borrowing

Fiscal policy shapes economies through government spending, taxation and borrowing.

Fiscal policy is a tool used by governments to regulate economic activities in their country. It involves the use of government spending, taxation and borrowing to influence economic growth, stabilize inflation and maintain a stable economy. This article will explain what fiscal policy is, how it works, and why it is important.

What is fiscal policy?

Fiscal policy is a tool used by governments to regulate economic activities in their country. It is one of the two main categories of economic policy, along with monetary policy. The main goal of fiscal policy is to control the economy through government spending and taxation.

How does fiscal policy work?

The government has a number of ways to affect the economy through fiscal policy. One of the primary methods used is government spending. The government may boost economic activity and create jobs by raising spending, which will add more money to the economy.

Another way that fiscal policy works is through taxation. The government can boost disposable income, which in turn can boost consumer spending, by decreasing taxes. This could encourage economic expansion and boost activity.

Important old chart of mine.

Fiscal policy created inflation to a much larger extent than QE pic.twitter.com/zeT5jLqwVA
— AndreasStenoLarsen (@AndreasSteno) March 18, 2023

Finally, fiscal policy is also used for controlling inflation. If the government considers inflation to be a concern, it may raise taxes or cut spending, both of which could help to lower demand and limit inflation.

Why is fiscal policy important?

Fiscal policy is important because it can have a significant impact on the economy. By adjusting government spending and taxation, the government can influence economic growth, inflation and employment levels.

Stimulating economic growth

The promotion of economic growth is one of fiscal policy’s main goals. The government can promote economic activity and employment by raising spending. As a result, there may be an increase in tax collections and corporate and individual chances for growth in the economy.

Regulating inflation

Inflation control is another key responsibility of fiscal policy. When there is an excess of money chasing an insufficient amount of goods, inflation can result in price increases. The government can lower demand by altering expenditure and taxation, which can aid in reducing inflation.

Reducing employment

Furthermore, fiscal policy can be used to reduce unemployment. The government can promote economic activity and employment by raising spending. As a result, there may be less unemployment and more options for employment.

Managing debt

Fiscal policy can also be used to manage government debt. By adjusting government spending and taxation, the government can influence the amount of money it borrows. This can help manage the government’s debt levels and ensure that it is able to meet its financial obligations.

➡️ New: Legislature's personal income tax & corporate tax proposals would raise between $1.6 – $2.1 billion:

• Senate & Assembly income tax increase: $710M

• Assembly corporate tax increase: $1.2B for MTA & other transit

• Senate corporate tax MTA surcharge: $930M for MTA pic.twitter.com/zj4gYE319K
— Fiscal Policy Institute (@NYFiscalPolicy) March 16, 2023

Do cryptocurrencies have a fiscal policy?

Due to their decentralization and lack of centralized management, cryptocurrencies do not have a fiscal policy in the conventional sense. Yet the supply and demand of some cryptocurrencies may be impacted by the fact that they may have their own distinct monetary policies and rules written into their code.

For example, Bitcoin (BTC) has a fixed maximum supply of 21 million coins, which is hardcoded into its blockchain protocol. This means that no more than 21 million BTC can ever be created, and this limit helps to regulate its supply and demand.

Even though cryptocurrencies lack a traditional fiscal policy, the rules and protocols incorporated into their coding can nonetheless significantly affect their adoption and value. For instance, alterations to the supply or consensus algorithm of a cryptocurrency may have an impact on its security and scarcity, which may have an impact on its price and market demand.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

Uncertainty Surrounds Federal Reserve’s Future Plans for Rate Hikes

January 9, 2023 Bitcoin.com

Crypto derivatives data signals improving investor sentiment and a possible trend reversal

February 6, 2022 Coin Telegraph

backwardation

Money is trickling back into the crypto market and derivatives data suggests that investor confidence is improving as the market forms a bottom.

This week the total crypto market capitalization rallied 10% to $1.68 trillion, which is a 25% recovery from the Jan. 24 bottom. It's too early to suggest that the market has found a bottom but two key indicators — The Tether/CNY premium and CME futures basis — have recently flipped bullish, signaling that positive investor sentiment is backing the current price recovery.

*Total crypto market cap excluding stablecoins, in USD billion. Source: TradingView*

Traders should not assume that the bear trend has ended by merely looking at price charts. For example, between Dec. 13 and Dec. 27, the sector's total market capitalization bounced from a $1.9 trillion low to $2.33 trillion. Yet, the 22.9% recovery was completely erased within nine days as crypto markets tanked on Jan. 5.

Bearish data suggests the Fed has less room for rate hikes

Even with the current trend change, bears have reason to believe that the 3-month long descending channel formation has not been broken. For example, the Feb.4 rally could have reflected the recent negative macroeconomic data, including EuroZone retail sales 2% yearly growth in December, which was well below the 5.1% market expectation.

Independent market analyst Lyn Alden recently suggested that the United States Federal Reserve could postpone interest rate hikes after disappointing U.S. employment data was released on Feb. 2. The ADP Research Institute also showed a contraction of 301,000 private-sector jobs in December, which is the worst figure since March 2020.

Regardless of the reason for Bitcoin (BTC) and Ether (ETH) gaining 10% on Friday, the Tether (USDT) premium at OKX reached its highest level in four months. The indicator compares China-based peer-to-peer (P2P) trades and the official U.S. dollar currency.

*Peer-to-peer CNY/USDT vs. CNY/USD. Source: OKX*

Excessive cryptocurrency demand tends to pressure the indicator above fair value, or 100%. On the other hand, bearish markets tend to flood Tether's market, causing a 4% or higher discount. Therefore, Friday's pump had a significant impact on China-driven crypto markets.

CME futures traders are no longer bearish

To further prove that the crypto market structure has improved, traders should analyze the CME's Bitcoin futures contracts premium. The metric compares longer-term futures contracts and the traditional spot market price.

It is an alarming red flag whenever that indicator fades or turns negative (backwardation) because it indicates that bearish sentiment is present.

These fixed-calendar contracts usually trade at a slight premium, indicating that sellers are requesting more money to withhold settlement for longer. As a result, the 1-month futures should trade at a 0.5% to 1% annualized premium in healthy markets, a situation known as contango.

*BTC CME 1-month forward contract premium vs. Coinbase/USD. Source: TradingView*

The chart above shows how the indicator entered backwardation levels on Jan. 4 as Bitcoin moved below $46,000 and Friday's move marks the first sentiment trend reversal in a month.

Data shows that institutional traders remain below the "neutral" threshold as measured by the futures' basis, but at least reject the bearish market structure formation.

While the CNY/Tether premium might have shown a trend shift, the CME premium reminds us that there's a lot of distrust in Bitcoin's capacity to function as an inflationary hedge. Still, the lack of CME traders' excitement could be exactly what BTC needs to further fuel the rally if the $42,000 resistance is broken over the weekend.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

The US Federal Reserve is making some analysts bullish on Bitcoin again

February 3, 2022 Coin Telegraph

ADP

Recent U.S. economic data could spoil the Fed's hawkish plans for 2022.

Signs of a steady Bitcoin (BTC) price recovery emerged earlier this week as investors shifted away from the U.S. dollar on weaker-than-expected economic data.

In detail, Bitcoin's drop last week to below $33,000 met with a healthy buying sentiment that pushed its per token rate to as high as $39,300 on Feb. 1. As of Thursday, BTC's price dipped below $37,000 but was still up 13% from its local bottom.

Meanwhile, the U.S. dollar index (DXY), which measures the greenback's strength against a basket of top foreign currencies, rose to 97.441 last Friday, logging its best level since July 2020. However, the index corrected by nearly 1.50% to over 96.00 by Feb. 3.

*DXY vs. BTC/USD daily price chart. Source: TradingView*

Some market analysts saw the dollar's renewed weakness as a sign of waning rate hike fears.

For instance, Lyn Alden, the founder of Lyn Alden Investment Strategy, tweeted that the Fed "reached a fever height last week in terms of making more and more aggressive tightening scenarios," noting that the central bank may turn dovish as "economic deceleration/weak PMI data takes center stage."

U.S. factory activity, employment drops

Alden cited the U.S. manufacturing growth, which, according to data released on Tuesday, dropped for the third month in a row in Jan. 2022. Notably, the Institute for Supply Management’s gauge of factory activity reached 57.60, its worst level since Nov. 2020, compared to 58.80 a month earlier.

*U.S. manufacturing growth data. Source: ISM, Bloomberg*

Additionally, the ADP Research Institute data released Wednesday also showed cracks in the ongoing U.S. economic recovery, revealing that employment across the regional companies fell by 301,000 in December 2021, the highest since the early days of the Covid-19 pandemic.

The lower-than-anticipated data came a week after the Federal Reserve Chairman Jerome Powell's press conference. He raised speculations about raising interest rates three times in 2022 to tame the rising U.S. inflation.

Powell's hawkish turn pushed the price of Bitcoin down as the U.S. dollar strengthened.

Currently, U.S. rate futures hint at four to five rate hikes in 2022. James Bullard, president of the Fed's St. Louis branch, further stoked the "tightening" fears, stating earlier this week that five rises were "not too bad a bet."

Nonetheless, his hawkish comments coincided with a recovery rally in the Bitcoin market as the dollar pared gains, prompting Alden and other analysts to say that the market may have overreacted to Powell's tightening outlook.

Fed officials now cautiously hawkish

One of the primary catalysts behind the Fed's rate hike plans was a steady recovery in the U.S. jobs market. But with lesser-than-expected ADP readings, the central bank could backtrack on its tightening plans.

"They have moved from nearly all talk and little action to 100% hot air," noted Preston Pysh, the founder of the Pylon Holding Company.

Some Fed officials have also noted that the central bank might not go ahead with rate hikes as aggressively as anticipated.

For instance, Kansas City Fed President Esther George said "unexpected adjustments" would not be in anybody's interest. Similarly, San Francisco Fed chief Mary Daly also cautioned against tightening too quickly.

Fed @ max hawkishness. Dovish from here. Implications for the dollar.
— Teddy Vallee (@TeddyVallee) January 28, 2022

Currently, the CME's Fed Watch Tool predicts a 94.40% possibility of a 25 bps rate hike in March 2022. But whether there would be back-to-back increases for the rest of 2022 remains unclear.

"They will hike, but not as much as the forward curve implies," wrote Teddy Vallee, the founder of Parvelle Global, a New York-based hedge fund, adding:

"Digital asset space pricing in worst case."

As a result, the very narrative that pushed the Bitcoin price to new multi-month lows last week appears to be showing cracks.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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