Very interesting post this is something that we will see sooner than we probably imagined, unfortunately it can have it's downsides on the security aspect i mean if everything's on your phone or arm device, etc... you will also need to be more responsible on the security aspect and many people don't even know that storing passwords on your browser and then using public wi-fi is actually more dangerous than sending someone your gmail password but not the 2 factor authentication code...
On the other fact if you rely on cloud based services it's up to the company to provide security and privacy of their costumers.
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