In the past, major trading and financial investment were almost exclusive to the world’s biggest cities.
New York, London, Hong Kong, Singapore, and Shanghai remains the top financial centres on the planet with ratings of 794, 787, 783, 772, and 770 respectively.
Could the Isle of Wight really be named among these global powers?
Could Newport be spoken about in the same breath as Wall Street?
Probably not, but the Isle of Wight could benefit from the fact that decentralised financial hubs are on the rise and nearly all trading now takes place online.
Trading Has Moved Mostly Online
The internet age has brought about massive changes for almost every industry that existed prior to it. Indeed, businesses that failed to make the switch when things moved online swiftly went under. Blockbuster and Toys ‘R’ Us are two significant examples of this. Needless to say, the financial industry has been transported to an internet setting as well, and a vast number of people now choose to trade remotely.
The cryptocurrency craze helped a great number of people realise that they could go online to buy and sell bitcoin from almost anywhere. Online trading hubs allow users to instantly purchase or offload the cryptocurrency when they think the market is going to turn. In 2017, when bitcoin was working up to its huge climax at the turn of the year, there was an explosion in the number of alternative coins and tokens being created. Because there was so much hype around cryptocurrency at this time, savvy traders were able to buy offerings like Litecoin and Ethereum and make huge gains as their stock rose.
It isn’t just cryptocurrencies that have seen a mass influx of online traders. More people are getting into buying and selling stocks and shares now that the information surrounding the previously exclusive process is so much more accessible. There are even internet companies that assist and help users to ensure they make the correct choices.
Exclusive to Major Cities in the Past
The reason why trading only really occurred in the major cities mentioned above in the pre-internet era, was because these places had exclusive access to the technology required to successfully utilise trading markets. The main financial hubs have fully customised computers which are capable of receiving and dealing with high levels of data.
Wall Street rose to prominence in the 19th Century, when Charles Dow began trading stocks in 1884. The co-founder of the Dow Jones & Company coined the terms for bull and bear markets to describe the peaks and troughs. The location became the epicentre for trading in the USA and the Dow Jones Industrial Average became the benchmark for analysing the market. However, after the turn of the century, traders began to realise the need for decentralisation by raising up financial hubs in other cities such as Chicago and Boston.
This decentralisation spread further as the internet permeated every sector of society and more businesses were transported online. Now currencies like bitcoin pride themselves on the fact that they aren’t ruled by a central organisation – a factor that appeals to remote traders.
Location of Little Importance
The reason why the Isle of Wight could benefit from the decentralisation of financial hubs is due to the fact that location is of little importance nowadays. With the internet providing a Newport resident all the same information and data as a New York businessman, there is no need for traders to be based in a renowned trading city – or even in an office.
Crypto trading, in particular, could be a good area of focus for freelance traders and businesses on the island. Bitcoin is expected to be one of the sole currencies of the internet in the future, and there are likely to be many bitcoin-centred businesses cropping up over the next few years. Trading in bitcoin and other digital currencies, therefore, could definitely prove to be lucrative.
The Isle of Wight has never been considered to be a financial hub, but there are now opportunities for people living there to get into trading. The industry is no longer confined to major financial cities, and all the information needed for trading is accessible to internet users all over the world.