Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Well the title was a hyperbole. Now that I have got your attention let us get started. It might be stretch as of today that we can kill twitter. But in this post I would like to show that it many not be impossible after all, at-least in a couple of years.
A few things to know before we start killing twitter.
It starts with realising the you are doing a favour to twitter and twitter is not doing a favour to you. Yes I agree that twitter has been a great tool and it even led to many Arab Spring.
Social Media Made the Arab Spring, But Couldn't Save It
But we need to realise that while these are the pleasant side-effects of twitter/social media, for a service or business to be sustainable it has to be profitable or at-least should have the profit generating potential in the future. Irrespective of whether the services is following a ad revenue based model or freemium model one thing is in common. Either you have to pay up for the services or the service needs to sell something to somebody.
Understanding what is that something that is sold and to whom it is sold is important.
Let us start with the most quoted quote regarding the free services or seemingly free services.
body[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}
If you are not paying for it, you're not the customer; you're the product being sold.
 — @andlewis
function notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}
Most of the social media users forget the value they are adding to the networks. It is easier for us to see a blog post or a video as as data/content. But we fail to realise that even the short status updates that we do on and our comments on them in social media websites are also content.
Every action that we do on social media is valuable and it adds to the valuation of the platform. How much is that action valued and how is it valued requires a detailed analysis (Will be following up this post with couple of related posts about this topic). But for now let us understand this much.
Every action that we do on a social media website falls into one of the following categories.
- Content creation
- Content curation
- Content Distribution
- Training the AIÂ models.
I have tried to highlight the same in this tweet of mine.
body[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}
A status update is content creation. A like is content curation. A retweet/reshare is content curation/distribution. A comment is content creation/curation. We just don't realise it on @Twitter and @facebook
 — @gokulnk
function notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}
It is difficult for people to understand this as they cannot see it clearly or rather there is no way for them to understand this. It only becomes clear in some conversations like the following. In February this year when aantonop was complaining about how facebook was locking him out, one of the users mentioned this.
body[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}
@aantonop @jimcatalano You are strange. You find it so difficult to trust fb yet you want to use its free features to reach others. I suppose there must be some goodwill behind it allowing you to reach its users. Newspapers don't allow you to reach its audience without you paying huge for it.
 — @personafinn
function notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}
Anton’s reply was interesting.
body[data-twttr-rendered="true"] {background-color: transparent;}.twitter-tweet {margin: auto !important;}
@personafinn @jimcatalano Or you could see it as me offering free content to FB that uses it to retain an audience without paying me. Content or platform? Which is more important?
 — @aantonop
function notifyResize(height) {height = height ? height : document.documentElement.offsetHeight; var resized = false; if (window.donkey && donkey.resize) {donkey.resize(height); resized = true;}if (parent && parent._resizeIframe) {var obj = {iframe: window.frameElement, height: height}; parent._resizeIframe(obj); resized = true;}if (window.location && window.location.hash === "#amp=1" && window.parent && window.parent.postMessage) {window.parent.postMessage({sentinel: "amp", type: "embed-size", height: height}, "*");}if (window.webkit && window.webkit.messageHandlers && window.webkit.messageHandlers.resize) {window.webkit.messageHandlers.resize.postMessage(height); resized = true;}return resized;}twttr.events.bind('rendered', function (event) {notifyResize();}); twttr.events.bind('resize', function (event) {notifyResize();});if (parent && parent._resizeIframe) {var maxWidth = parseInt(window.frameElement.getAttribute("width")); if ( 500 < maxWidth) {window.frameElement.setAttribute("width", "500");}}
So it brings us to the question who is benefitting from whom. Is the platform benefitting from the user or is the user benefitting from the platform. At the least it is a synergy between the platform and user. At worst the platform is ripping of your data and making a hell lot of money while not rewarding you in anyway.
What is your data worth?
Data and the value it creates is has different lifetimes and there are lot of overlaps. So it is difficult to put a value to it. Let use a very crude way to identify the average minimum value of our data on Facebook. Facebook is valued at 600 Billion USD today. There are around 2 billion users on Facebook. Since Facebook makes money primarily by showing ads or/and selling your data :P , data created by each user should be worth at-least 300 USD.
How Much Is >Your< Data Worth? At Least $240 per Year. Likely Much More.
One thing that everybody seems to agree is that data is the new oil and it is valuable. But what most of us fail to understand is that oil has a single lifecycle but whereas data has multiple life-cycles. So any valuation you put to a data piece is only a moving value that is affected by various parameters. We also need to realise that data that we consider archived or stale also revenue generating potential in the future. AI models will need a lot of data going forward and will unlock the revenue generating potential of your data. In the following article you can checkout how Bottos and Databroker DAO or unlocking the potential of data from various sources.
Data Monetization: 2 untapped ways to monetize your data, no matter what size it is
The two ways to realise the true value of your data
There are two ways you will realise that your data is worth something.
One : Have somebody like Zuck sell your data and make billions in the process.
Two : look at the real money people make with data.
1. When your data is sold
Cambridge Analytics expose happened on March 17, 2018. This expose made it clear that the user targeting is not just for ads and can be used for much more. There were serious concerns about users’ privacy. The expose once again proved that privacy is dead. What is more disturbing is that experts expressed that this might have a serious effect on Facebook’s future valuations. But that turned out to be completely false. Can you spot the dip in Facebook marketcap because of this scandal? I have highlighted this in red circle for you towards the right end of the graph. This is what I would call “A major dip in the short term but a minor blip in the long term”. The quick correction back to the trend line only suggests that nobody takes privacy seriously any more.
2. When you look at real money people make with your data
I am sure that Andreas M. Antonopoulos knows the value of data. I am just taking this example as it was a high profile case where data created elsewhere was able to generate revenues in some other platform because of the data distribution. The interesting thing is that in this case the money made was being used for translating aantonop’s videos to other language. You can read more about it here.
Aantonop made the above post which can be called as “Proof of Identity” post verifying that he is the real aantonop.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.