The 1990’s Tech boom our most recent “Golden Age” age of modern innovations. Contributing factors to the name include the rise of the internet and API technology. The Internet allowed global communication without friction, but trading was still a problem.
The global market was seeing record highs. Over-eager investors dumped money into anything that said online. A more than willing banking industry provided the funds through private sector loans.
The internet was new, and nobody understood exactly how it worked and what it is capable of, which wasn’t much! Investors in online business rushed to the banks to borrow as much as possible. And even though the Tech Market was at an all-time high, some returns were low, while many others failed.
Failing investments led to a high percentage of loans left unpaid. Banks leveraged government-backed insurance to return their loss, until the year 2000. The Tech Boom Bubble burst, leaving investors high and dry with a rapid decline, lasting for two years. The Nasdaq plunged around 80% over the next couple of years.
The decline sparked an incentive for innovative solutions. As a competitive edge, companies began development of Application Programming Interfaces (API). eBay was one of the first pioneers of API technology, which helped in its rebound and smooth recovery.
We have seen the internet rise from the tech boom. More recently, the Internet of Things has been making huge strides in mobile and big data. Now, Cryptocurrencies and Blockchain Technology have shown unprecedented surges in the market. Altogether, financial and technology services (FinTech) are combining efforts, to decentralize future capitals.
The world is preparing to enter another “Golden Age” of modern innovation. After surviving a decade-long global fiscal crisis investment and marketing knowledge has improved. The Digital Revolution changed the way we treat data and computation.Millennials will dominate the democratic progress of distributed technology with strong conviction. FinTech capitalizes on new innovation and the confidence of a strong global economy.