The currency of you. Does Janet Yellen “like” Facebook?
Why Facebook has a deflationary impact?
The Internet is so powerful against incumbent offline industries because it heavily promotes the values of deflationary economics. That is, improving efficiency and driving down prices.
Deflationary Economics is where you drive down the cost of providing a product or service to a customer over time. This means you reduce the margin that you earn on each individual transaction, but you increase the overall number of transactions significantly.
How do Deflationary Economics work?
Deflationary Economics work by reducing the cost of a product whilst increasing the ability or supply to the market.
For example, enterprise software is usually very expensive and only available to a select number of very large companies. A competitor that was using Deflationary Economics would create a reduced version of the same product that could be sold at a massive reduction to a much wider market. The competing company would earn significantly less per customer, but would be able to earn revenue from a much bigger total addressable market because more people could afford to buy the product.
When you sign up to Facebook you deliver to them, free of charge, the following.
1. Your full name.
2. Your birthday.
3.Your religious views.
4. Your political views.
5. Languages you speak.
6. Your screen name (lol).
7. Your cell phone number.
8. Your favorite quotations.
9. Access to all the contacts inside your personal email account.
10. Your picture, personal photo albums.
11. Your high school.
12. What year you graduated high school.
13. If you didn’t graduate high school.
14. Your hometown.
15. Your college.
16. What year you graduated college.
17. If you didn’t graduate college.
18. Your employer.
19. Your past employers.
20. When you got engaged.
21. When you got married.
22. When you got divorced.
23. When you broke up.
24. When you were in an open relationship.
25. When it was “complicated.”
26. Your current location.
27. Your exact residence/address.
28. Any personal website you’ve ever made.
29. Your past and present relationships.
30. Your family members.
31. Movies you’ve watched.
32. Movies you’d like to watch.
33. TV shows you’ve watched.
34. TV shows you’d like to watch.
35. Books you’d like to read.
36. Books you’ve read.
37. Places you’ve visited.
38. Your favorite public figures.
39. Your favorite actors/directors.
40. Your favorite bands/musicians.
41. Your favorite TV shows.
42. Your favorite books.
43. Your favorite movies.
44. Your favorite news sources.
45. Your favorite “inspirational people.”
46. Your favorite restaurants.
47. Your favorite foods.
48. Your favorite websites.
49. Your favorite athletes.
50 .Your favorite sports teams.
51. Your favorite clothing.
52. Your favorite “interests and activities.” moves-app.com
53. How many steps you’ve taken that day (via Moves).
54. Number of calories you’ve burned.
55. If you ran and how far/how long (via Moves).
56. If you biked and how far/how long (via Moves).
57. If you’ve been training at the gym “and over 60 other activities by duration” (via Moves).
58. The real-time location of you and your friends that have opted-into “Nearby Friends” (via nearby friends).
59. What TV show you’re currently listening to while typing out a status update on Facebook’s mobile app if you’ve opted-in to Facebook’s new status update listening tool.
60. What song you’re currently listening to while typing out a status update on Facebook’s mobile app if you’ve opted-in to Facebook’s new status update listening tool.
61. Anything your phone records within 15 seconds of you typing out a status update.
62. What you’re doing inside the apps you authenticate using Facebook Connect.
63. What your face looks like, now and forever.
64. Who and what you’ve texted (via WhatsApp/Messenger).
65. The people you search for.
66. The places you search for.
67. The friends you search for most.
68. The people you’re most likely to be in a picture with.
69. Who your best friend most likely is based on how many photos you appear in together
70. What parties you attended.
72. What events you attended.
73. What pages you like.
74. What pages you created.
75. What groups you’re in.
76. What groups you created.
77. What ads you click on.
78. What other sites you’re on.
79. What “People You May Like.”
80. And our personal favorite: “Write About Yourself.”
This information has been provided free by you, to them and is where great value lies, the data that they garner has huge resale capability and tells companies everything they need to know about you and what they can sell you.
I would make the point that you, your profile and your data are in fact “currency”. A currency that is valuable and tradeable, and it’s value will increase against all other currencies over time.