The internet and the fast development of technology are shifting every business industry out there. The fast pace advancement in technology has forced many businesses to adapt or die. Social media, internet protocols and all the opportunities that they bring are changing many industries, allowing for easier ways to do everything business related. Share information that will reach thousands of people, sell stuff, market your products where most of the attention is and network.
The internet is responsible for a big part in the advancements in communication. The technology unlocked communication to a degree that wasn’t thought possible in the past. The value created by the shift can be observed and felt. The same statements can be applied to blockchain technology.
In a way cryptocurrencies offer a type of communication between people. Money and asset ownership by a protocol in a way enables you to own and express yourself. With the development of blockchain technology it is very likely that it will unlock massive amounts of value in the future.
Facebook drops 100$ billion in evaluation after the Cambridge Analytica scandal
As you probably know it has been a rough few weeks for Facebook. The Cambridge Analytica scandal has shaken the company. It was found that a third-party data provider was farming or mining user information on behalf of political groups. The company and their CEO Mark Zuckerberg have faced the public criticism and outcry. Facebook should be more careful with user’s data as the leading data-hoarding giant.
But Facebook stocks took the biggest hit, as the company lost 100$ billion from their evaluation. Facebook’s evaluation was more than 500$ billion, but a good question is why does a company that collects users’ data and connects them through messaging and social channels is valued so high. The plunging of Facebook’s stock was eye opening for the cryptocurrency community and a current argument some people have: if some of the leading cryptocurrencies deserve their evaluation at more than 1$ billion.
Why do people mention a bubble when they are talking about cryptocurrencies, but don’t mind Facebook losing 100$ billion in less than 2 weeks. Another communication provider, WeChat, an app that offers the same services like Facebook, but for Chinese users is valued similarly. Of course, today’s business environment is much better than the years before. Current messaging protocols offer much more to users than phone companies back then. And still a lot of them were valued at over 100$ billion.
True value can’t be evaluated easily
The argument that Bitcoin can’t possibly justify its current valuation is mostly made by people that can’t see all the possibilities the technology brings. A popular question that sceptics ask is why do you need so many cryptocurrency projects when they offer mostly the same technology? Well a good question is also why do most social media are valued so high when they offer mostly the same technology?
Our smart phones have countless apps that offer mostly the same things or slight variations of the same communication experience. So why are social media valued so high? The answer is the enormous value they provide. Expression is a big part of today’s society. Social networks have different valuations because of the user experience they offer and the variety of ways that users can express themselves and communicate with people.
You can use Slack for business related channels, you can use Snapchat if you want to communicate with pictures, WeChat if you want to talk with people in Asia, Skype, Facebook and Twitter for everything in general. The user base is a form of liquidity for these companies and still each company provides the upfront value first. This can apply to cryptocurrencies as the user base that uses them is a form of liquidity. It allows people a new way of communication that they can use which can be far more valuable than we think.
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