What is the Digital Economy? An economy focused on digital technology

The Digital Economy in Action
Tourists can make online reservations thanks to Airbnb. Additionally, it has made it easy for private homes to rent out a room or a house to tourists. It was not feasible before the advent of the digital economy

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  eBay or Amazon Market.
  
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  With Netflix, users can rent and buy movies and TV shows over the internet without exchanging any actual goods.
  
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  A website that sells electronic books for economics revision, such as Economics Help.
  

So this economy is a method to take advantage of this chance. Today, it is incorporated into every facet of a user's life, including banking, entertainment, healthcare, and education.
Advantages of the digital economy -

1. 
   Encourages Internet Use: As a result, investments in everything related - hardware, technological research, software, services, digital communication, etc., have dramatically increased. Because of this, the internet and web-based enterprises are guaranteed to be around for the foreseeable future.
   
   
2. 
   Growth of e-commerce: Businesses that embraced online commerce in the past ten years and adapted to the internet have prospered. The e-commerce industry has gone into overdrive as a result of the digital economy. Purchasing, distribution, marketing, creation, and selling have all evolved beyond merely direct selling.
   
   
3. 
   Products and Services Offered Online: The days of music CDs and movie DVDs are long gone. These products are now accessible to us digitally. There is no longer any demand for any physical goods. This also applies to services like banking and insurance. If you can complete all of your transactions online, there is no need to go to the bank. In this digital economy, some products and services have been fully digitalized.
   
   
4. 
   Discretion: The vast majority of transactions and payments occur online in the digital economy. Cash transactions are getting less common. This increases economic transparency and helps lessen illicit money and market corruption. In order to advance the digital economy, the government actually pushed for online transactions during the demonetization process.
   
   
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