What is digital economy? Explain its advantages and disadvantages in the longer run.

Ans: Digital economy refers to an economy that is based on digital computing technologies, although we increasingly perceive this as conducting business through markets based on the internet and the World Wide Web.

Characteristics of digital economy

The major characteristics of the digital economy include globalization, digital system, speed, information overload and intelligent search, markets, digitization, business models and processes, innovation, obsolescence, opportunities, fraud, wars, and organizations.

Why is digital economy important?

Our emerging digital economy has the potential to generate new scientific research and breakthroughs, fuelling job opportunities, economic growth, and improving how people live their lives. These changes are happening all around us

Advantages of digital economy

1. Money movement will be quicker.

2. Eliminate storage of illicit money.

3. It is easy to Tax man to compute the income and impose tax.

4. Government can take quicker action by blocking the account.

5. The customer need to pay exact amount. Now the customers are compelled to pay 0.49 paise extra under guise of rounding off, even Reliance, Tatas are taking this opportunity. This was the shadowed inflation. In organisation, rounding amount accumulate to Rs 28 crore. Understand, one telecom company has a several crores of customers, so estimate the amount.

7. If you purchase one item of Rs 4 earlier to demonetization, you gave Rs 5 but the seller will not return Rs 1 under the guise of scarcity of coins, but give a toffee. The unlawful tie-up was a banned trade practice under MRTP Act

8. Problem of counterfeit note will eliminate, many common people lost their value against counterfeit RS. 1000 note.

9. Cash chest cost will reduce, there are about 14, 000 cash chests are operated in India, and there is scope to reduce.

10. Substitute of money order, demand draft etc., You can transfer the amount from your bank account to your loved one quickly, as against money order and hefty fees.

Disadvantages of digital economy

ONLINE FRAUD: Although the elderly and uneducated ones fall into this trap, others aren’t safe too. Prizes, Free Goodies, ATM PIN, OTP’s are just some ways to lure potential victims.

FAKE NEWS: People tend to believe just about anything on the internet ranging from Unicorns to UNESCO prizes bestowed upon our nation.

HATRED: Doctored clips and photo-shopped images are the thing in propaganda policy right now. Once an idea has taken roots in your brain no amount of logical reasoning can shake it off easily.

CYBER BULLYING: Youngsters new to social media platforms fall prey to predators resulting in dire consequences. One recent example is the Blue Whale Game.

VIRAL VIDEOS: It is one of the worst cases of internet misuse. Making videos and pics viral is seen as a tool to defame and shame the victim. Another sad aspect is when children are involved in a sexual nature.

DIGITAL CURRENCY: This is one step intended towards reducing hard currency usage but it sudden implementation has seen people unable to buy goods or pay (demonetization!).

DISTRACTION: Students have distanced themselves from books thanks to dirt cheap data packs. Not many years have passed by when we used internet cautiously so as not to exhaust our MONTHLY limit. Now that just a day’s quota.

SOCIAL LIFE: Families get to spend very less quality time like back in the past when we used to watch TV together so for any other activity. Now everyone just wants to remain updated with the world but not with their loved ones.

HYPE-BEAST: There’s this fake pride in showing off wearing the latest brands enjoying being the centre of attraction while being hollow inside.

IDENTITY THEFT: This is one big unaddressed issue that looms over us. Security measures aren’t up to international standards and we mistake by not identifying this as that big a problem.